US And Canada Report

Sony shrugs off cyberattack and trims loss forecast

Sony shrugs off cyberattack and trims loss forecast

Sony, the global electronics and entertainment company based in Tokyo, said it expects to see a loss of 170 billion yen ($1.4 billion) for the fiscal year, an improvement from its earlier forecast of a 230 billion yen loss. The improved outlook comes despite disruptions caused by a cyberattack late last year that caused the company on Wednesday to only offer “an approximation” of its fiscal results for the year that ends in March.Sony-and-Ericsson-go-separate-ways-HMH61IL-x-large

On Jan. 23 it filed an application to extend the deadline for submission due to “a serious disruption of network systems which occurred as a result of a cyberattack against Sony Pictures Entertainment in November 2014.” It said the hack at Sony Pictures is not likely to hurt its finances overall and that it was benefiting from strong sales of gaming and network services and devices.

The company, which reported a 40 billion yen loss last fiscal year, is in the midst of a restructuring that includes an exit from the PC business. “Our restructuring is progressing … (but) I cannot say that we have finished our turnaround yet,” said Kenichiro Yoshida, Sony’s chief financial officer. The infamous cyberattack first came to light on Nov. 24. Employees arrived at work at the subsidiary’s Culver City, Calif. headquarters to find they were locked out of their computers and much of the company’s network was shut down.

Within days it became clear the attack had been more devastating than originally thought. The hackers, whom the United States government has identified as North Korea, not only stole tens of thousands of documents, some highly embarrassing to the company, but also erased much of the network. Five Sony feature-length movies, for of which had not yet been released, were stolen and posted on file sharing sites, damaging sales.