Sharp president: No plans for another stock sale
The ailing electronics manufacturer raised more than $1 billion in a stock sale last year, but now its focus is on boosting profits.
Sharp President Kozo Takahashi said his struggling consumer-electronics company isn't considering another public sale of its stock to bolster its weakened finances, noting that such a move "would not make sense."
Takahashi, speaking to a round table of reporters Tuesday, said Sharp would instead focus on increasing its profits, Reuters reported, dismissing an earlier report from a Japanese newspaper claiming Sharp was weighing another sale. In an effort to shore up its finances, the company late last year raised over $1 billion a stock sale.
"We are absolutely not considering a public share offering," he said, according to Reuters. "We will build up our capital by boosting our profits."
The Japanese company has tried for years to turn around its business, as it replaced top leadership, underwent layoffs, and restructured its operations. Sharp in past years posted record profits and rose to the top of the Japanese electronics industry, aided by strong flat-screen TV sales. However, when the financial crisis hit in late 2007 and TV demand dwindled, Sharp's financial results and stock price tumbled.
In addition to last year's stock sale, Sharp has also taken equity investments from US chipmaker Qualcomm and Korean consumer-electronics rival Samsung Electronics as it works to repair its finances.
The company is now looking to rebound by supplying electronics components to both Samsung and Apple.
CNET has reached out to Sharp and will update this report with any additional comments.