$238M Loss Attributed to One-Time Expenses
Sega Sammy holdings has stopped the bleeding ever so slightly.
Though the company posted a loss of ¥22.88 billion for fiscal year 2008, or about $238 million, that is much less than the FY2007 loss that exceeded $545 million.
Sales were down 6.5 percent overall, and game sales were also off by 7.5 percent, but there was a glimmer of hope–Sega Sammy showed a pretax profit of over $66 million. Much of the loss can be attributed to one time expenses the company recorded, and that included a write-down on the value of its arcade division–the one the Sega arm is primarily responsible for.
Sega Sammy expects continued loss of sales in FY2009, but hopes to see pretax profits climb to about $260 million and–hopefully–post a net profit of $150 million next year. To do that, they will be cutting costs, including offering longtime employees an early retirement package. It could mean some veteran developers within Sega are offered buyouts, and we’ll keep tabs on that part of the story should it unfold.
Shares of Sega Sammy closed down five percent yesterday on NASDAQ, to $2.47 a share.
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What is a “one-time expense”, and why does it cost them so much? Is it like a new in-house engine they had to design or something completely different?