Sharp warns that it is close to collapse
Troubled Japanese telly maker, Sharp, has warned that if it can't do something radical soon, its business could go the way of the dodo.
Despite being a major supplier of LCD displays to Apple and other manufacturers, the company has admitted that it can't survive in its current form.
According to Computerworld, the company said that there is "material doubt" about its ability to continue operating.
The company thinks that it can cut costs and secure enough credit to survive and much of its plan for recovery is based on its IGZO technology for mobile displays. This technology uses less battery power than existing screens.
Sharp is also carrying out a restructuring plan in which it has reduced headcount, slashed employee salaries and mortgaged its buildings and factories.
The company is booking a net loss of $5.6 billion for the year - mostly to cover its restructuring costs. Its stock has been downgraded to junk status by ratings agencies and apparently its executives have been seen around Apple and Intel HQs with their cloth caps in their hands looking for bail outs, or investments, depending on who you talk to.
Sharp President Takashi Okuda said the company is continuing its negotiations with Hon Hai, even though so far these have not been going that well.
Sharp made a mistake in that it thought that the world wanted LCD panels for large-screen TVs. It is now trying to switch over to the booming market for tablets and smartphones.
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