Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  
TRANSCRIPT SPONSOR
Blackfriars Communications, Inc.

Sony Corp. (NYSE:SNE)

F1Q07 Earnings Call

Thursday, July 26, 2007 17:30 JST

Executive

Nobuyuki Oneda – Corporate Executive Officer, Executive Vice President, and Chief Financial Officer Sam Levenson, Senior Vice President, Investor Relations

Robert Wiesenthal, Group Executive, EVP and CFO

Analysts

Evan Wilson – Pacific Crest

Daniel Ernst – Hudson Square Research

Jessica Reese Cohen – Merryl Lynch

C. J. Muse - Lehman Brothers

Presentation

Operator

Good day ladies and gentlemen and welcome to the first quarter 2007 Sony Corporation earnings conference call. My name is Michelle and I’ll be your audio coordinator for today. At this time all participants are in a listen only mode. We will be facilitating a question and answer session towards the end of today’s conference. (Operator Instructions) As a reminder, this conference is being recorded for replay purposes. I would now like to turn the presentation over to your host for today’s call, Mr. Sam Levenson, Senior Vice President, Investor Relations, at Sony Corporation of America. Please proceed, sir.

Sam Levenson

Thank you very much for that introduction, Michelle. Thank you all for joining us today, July 26, 2007, for the discussion of Sony’s results for the quarter ended June 30, 2007. I’m San Levenson, Senior Vice President, Investor Relations of Sony Corporation of America, and I’m joined this evening in Tokyo by Nick Oneda, Corporate Executive Officer, Executive Vice President, and Chief Financial Officer of Sony Corporation. And by Robert Wiesenthal, Group Executive in charge of corporate development and M&A for Sony Corporation and EVP and CFO of Sony Corporation of America. Thank you both very much for joining us.

In just a few moments I’m going to give a brief summary of today’s announcement. Then, Mr. Oneda and Mr. Wiesenthal will be available to answer your questions. Please be aware that statements made during the following remarks and Q&A session with respect to Sony’s current plans, estimates, strategies, press release and other statements that are not historical facts, are forward-looking statements about the future performance at Sony. These statements are made upon management’s assumptions in light of the information currently available to it, and therefore, you should not place undue reliance on them.

Sony cautions you that a number of important factors could cause actual results to differ materially from those discussed in the forward-looking statement. For additional information as to risks and uncertainties, as well as other factors that could cause actual results to differ, please refer to today’s press release, which can be accessed by visiting www.sony.net/ir. With that, I’m now going to turn to today’s announcement.

I’ll begin with a discussion of our consolidated results and segment results for the quarter ended June 30 and then review our forecast for the year ended March 2008. Consolidated sales, operating income and net income all achieved a new record for the first quarter. Consolidated sales increased 13% year-on-year to 1,976.5 billion yen due to the large increase of sales of all segments, except all other. Consolidated operating income increased to 99.3 billion yen from 27 billion yen in the prior year. Although the electronics and financial services segments saw significant increases in operating income, the games segment recorded an operating loss.

Restructuring charges, which are recorded as operating expenses, amounted to 3.4 billion yen to the quarter, compared to 10.7 billion yen for the same quarter of the previous year. Non-operating income deteriorated 42.5 billion yen to a 15.6 billion yen loss. This was primarily due to a 21.5 billion yen swing from a foreign currency exchange gain to a loss. In addition, in a prior year, a 18 billion yen gain was recorded due to Sony sale of its majority stake in (inaudible) Holdings, Inc., whereas no gain was recorded in the current year period.

Equity and net income of affiliated companies increased 18.3 billion yen year-on-year to 22 billion yen. Contributions of the major affiliates are as follows; Sony Ericsson contributed equity and net income to Sony of 17.7 billion yen, an increase of 17.5 billion yen, due to its continued strong performance. S-LCD contributed 1.5 billion yen, an improvement of 1.8 billion yen. Sony BMG contributed 1.2 billion yen, an increase of 5.8 billion yen.

No income or loss was recorded in the current year period for MGM, as compared with a loss reflected in the prior year period of 2.6 billion yen. So, on the bottom line, net income doubled versus the prior year to 66.5 billion yen. Now I’ll take a few minutes to discuss the quarterly results on a segment-by-segment basis.

First, electronics. Sales in the electronics segment increased 12%, or 4% on a local currency basis. Sales to outside customers increased 7%. By product, digital cameras, which had strong sales in all regions, Bravia LCD TV’s, which experienced higher unit sales outside of Japan, and video cameras, which recorded increased sales primarily in the U.S. and Europe, all contributed to the sales increase.

Inter-segment sales increased significantly, mainly due to sales of PS3 semi-conductors. Operating income in electronics increased 77%. The largest profit contributing products were, in order of magnitude, digital cameras, video cameras, image sensors, and PC’s. The largest loss making products were LCD TV’s and LCD rear projection TV’s. The two primary contributors to the significant year-on-year increase in operating income were the positive impact from foreign exchange and increased sales.

Looking more specifically at the TV and semi-conductor categories; in television, overall sales in the TV category for the quarter were approximately 235 billion yen, a decrease of 10% year-on-year. Operating loss was approximately 39 billion yen, a deterioration of 28 billion yen year-on year. LCD rear projection TV’s were affected by rapid market shrinkage and price declines. Although there was a negative impact from the price decline, the sales increased nearly 20% over prior year to approximately 200 billion yen. As we approach the year end holiday sales season we will enhance our lineup, focusing on larger screen sizes and full HD models.

Now, semi-conductors. Overall sales of the semi-conductor category for the fiscal year were approximately 155 billion yen, an increase of 41% year-over-year. Operating income was approximately 8 billion yen, an improvement of approximately 13 billion yen year-over-year. Sales and profit increased due to sales of chips for the PS3. We do expect the semiconductor will be profitable for the full fiscal year ending March 2008.

Next, Sony Ericsson. Sony Ericsson’s sales increased 37% to 3,112 million Euros. As I noted earlier, Sony recorded 17.7 billion yen of equity and net income from the venture, an increase of 7.5 billion yen. Unit sales were approximately 24.9 million, an increase of 59%. Walkman and Cyber-shot phones contributed to the improved results. Sony Ericsson’s market share increased three percentage points year-over-year to over 9%, primarily due to the expansion of its product lineup in the affordable and middle parts of the market.

Turning to the game segment, sales increased 60%, or 49% on a local currency basis. Approximately 70% of sales came from hardware and accessories, and the balance from software. Looking at each of the hardware platforms, first PS2. Due to the launch of diverse software titles in every region, we are seeing demand for the PS2 which exceeds our expectations. Even though it has entered its eighth year since launch, PS2 recorded an increase in sales, as unit sales increased year-over-year. PSP hardware sales increased due to a significant increase in unit sales year-on-year. Penetration of PSP is [significantly] expanding in every region.

In September, we will introduce a new PSP, which is slimmer and lighter. We will accelerate the product’s penetration by enhancing the software lineup. Although PS3 contributed to the increased sales, actual results of this quarter were slightly below our original expectation. In an effort to expand the user base, we cut the base of the 60 gigabyte PS3 in July, and we introduced an 80 gigabyte PS3 in North America, which will be bundled with a popular software title beginning in August. These actions have led to an increase of sales over the past few weeks, since the announcement of the price cut.

In Japan and Europe we will introduce a PS3 bundled with a popular software title and accessories.

Next trend is software. PS2 software sales increased as we had a hit first party title, which had a high unit price. Despite an increase in unit sales, PSP software revenues decreased because some of the best sellers were affordably priced titles. PS3 software also contributed to sales. At the E3 Game Conference in the U.S. and at the PlayStation premiere in Japan, we revealed our plans to enhance our PS3 software lineup, and we’re currently working to provide various high quality PS3 software titles or the year end holiday sales season.

Making first and third party titles together, we plan to release approximately 200 new disc based games worldwide by the end of March 2008. Operating loss in the game segment increased 2.4 billion yen to 29.2 billion yen. Although profit from software increased, as hardware penetration grew, segment losses increased primarily due to the loss arising from the strategic pricing of PS3 at points lower than its production cost. 5.2 billion yen of the segment loss was a write down of intransient and component inventory.

As you may have notice, we’ve the actual unit disclosure for hardware and software from production shipments to [sell-in]. We’ve also done this for the unit forecast for each game platform. The result, however, is no change in the forecast figures. PS2 hardware unit sales are expected to be 10 million units, PSP hardware unit sales are expected to be 9 million units, and PS3 hardware unit sales are expected to be 11 million units. Overall, software unit sales are expected to be 250 million units.

Turning to the pictures segment, sales increased 13% year-on-year, or 7% on a U.S. Dollar basis. Sales increased primarily due to the highly successful theatrical performance worldwide of Spiderman 3, combines with growth in advertising revenues for several of Sony Picture Entertainment’s international channels. Operating income increased to 3.3 billion yen, compared to an operating loss of 1.2 billion yen in the same quarter of the previous year. The current quarter’s results benefited from sales in the home entertainment market of such films as Casino Royale and Stomp the Yard. Operating income also benefited form lower marketing expenses incurred for upcoming summer releases compared to the same quarter of the prior year.

Next, financial services. Revenue increased 49% due to an increase in revenue at Sony Life. Revenue at Sony Life was 161.8 billion yen, a 65% increase over the same quarter of the previous fiscal year. The main reason for this high revenue was an improvement in both valuation gains from convertible bonds in the general account, and gains from investments in the separate account, as well as an increase in insurance premium revenue, reflecting an increase in policy amounts enforced.

Operating income increased to 33.8 billion yen from 4.6 billion yen, as a result of significant increase of operating income at Sony Life. Operating income at Sony Life was 34.6 billion yen, a ten-fold increase, due to the improvement in valuation gains from convertible bonds in the general account, and an increase in insurance premium revenue, reflecting an increase in policy amounts enforced.

Results at Sony Assurance and Sony Bank are also trending well. Sales in the all other segment decreased 4% compared to the same quarter the previous fiscal year. This sales decrease was due to the fact that the first quarter of the previous fiscal year included two months of results from six of Sony’s former retail businesses.

Sales increased at Sony Music Entertainment of Japan as a result in increase of consignment sales and album sales. Operating income increased 64%. This increase was primarily a result of the increased sales recorded at SMEJ, as well as higher fee revenue from new subscribers at Sonet Entertainment Corporation. Sales of Sony BMG increased slightly to $875 million. This increase was due to the combined strength of several releases and the growth in digital sales, being mostly offset by the decline in the worldwide physical music market.

Sony BMG recorded income before income taxes of $31 million as compared to a loss before income taxes of $73 million in the same quarter last year. Profitability improved primarily due to lower marketing, overhead, and restructuring expenses, as well as a gain on sale of an interest of a joint venture of Sony BMG.

Now I’d like to explain our forecast for the March 2008 fiscal year. Our forecast for the March 2008 fiscal has not changed from the forecast we announced on May 16. Although the results of the first quarter were better than our internal forecast as of May, and we revised our foreign exchange assumptions to reflect a weaker yen after the second quarter, we currently view the business environment for electronics and game going forward to be more severe than our internal assumption made in May. Our foreign exchange assumptions for the remaining three quarters of the fiscal year are 117 yen to the Dollar, and 158 yen to the Euro.

Before Mr. Oneda and Mr. Wiesenthal take your questions, I would like to summarize the key points discussed today. The electronics segment, which continues to enjoy a resurgence of growth and profitability drove the year-over-year increase in operating profit this quarter. The financial services segment also exhibited strong year-over-year operating profit growth. Sony Ericsson and Sony Pictures continued to be key contributors to profit growth.

In the games segment, we’ve seen continued success with PS2, a resurgence of sales for PSP, and we expect to have hundreds of new titles available for the PS3 over the coming months. Our full year earnings forecast remains unchanged, and we’re on track to achieve a six-fold increase in operating income, and out operating margin goal continues to be forecast to be 5%. At this time we’d be pleased to take your questions.

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions) Our first question comes from the line of Evan Wilson of Pacific Crest. Please proceed.

Evan Wilson – Pacific Crest

Hi there. Good Morning. Two questions. One, on the game business. Could you first clarify on the change in how you’re giving guidance relatively to game business? When specifically you record a sale and will actually recognize as the guidance versus the shipment modeled before exactly, does it have to actually hit the retail channel before you can count it? And then secondly, on the game business, could you address the inventory of the PS3, and how long you think it will take for those PS3’s to sell through, and also when you expect to get a 65 (inaudible) version of PS3 on the channel. And then I’ve got a follow-up.

Unidentified Executive

Evan I’m sorry. We’re going to have to ask you to speak up a little bit louder please.

Evan Wilson – Pacific Crest

Sure. First question is a little more detail on the shift in the guidance on the game business into the recorded sales model from the previous model. When exactly are you counting that as a recorded sale? Is it when it hits the retail channel? And then, secondly, on the game business, some more detail on inventory of the PS3 at the end of the quarter, and how long you think it will take for that inventory to sell through, and what the possibility is to get a cost-down version of the PS3 into the channel by the end of the year?

Nobuyuki Oneda

This is Nobuyuki Oneda. I will answer your questions. We just changed the shipping information from the production basis to the shipping basis starting from this quarter. The reason for this is that, after the last earnings call, we (inaudible) the media and the investors, that the production or shipment unit is not leading to our sales and (inaudible), sale’s amount, so it’s better to change from the production to the sale’s basis, [serene] basis. So that is the main ideas.

And of course there is another reason. That in the past, when we had been competing with Nintendo, they used to ship to the distributors rather than to the dealers. So, in other words, if we ship to the dealers, they ship to the distributors. There are some differences, so therefore, we apply the production basis or shipping basis, rather than the (inaudible) basis, to achieve the closer figure with the Nintendo number. (inaudible) the shipping time. That’s clear?

Evan Wilson – Pacific Crest

Yes.

Nobuyuki Oneda

The second question is the fierce inventory at the end of June? Our (inaudible) season is the November to December timeframe, but those two months are quantitatively so huge, so therefore, we have to pile up inventory, starting from the early stages, like the May-June period, because we have some capacity issues. So it is a monthly supply business. Years we have bigger number compared to the current sales volume. But we don’t think it is too risky inventory at this moment.

And your third question, when the 65 nanometer version would be in the [channel], I couldn’t exactly tell the timing at this moment, but of course within the peak season. That I could say.

Evan Wilson – Pacific Crest

Thank you. And also a follow-up relative to the pricing commentary on the LCD business. Is that business in it’s decline in price, it sounded like, potentially it could be greater than what you were previously expecting. Could you talk specifically about the differences between the European business and the US business and what, if any, you think will happen with prices as we get closer to the holiday season? Thank you.

Nobuyuki Oneda

This time the price (inaudible) in Europe was much higher than we expected. Practically because of the Samsung (inaudible). And in US the price of deterioration is not as bad as we expected, but the program with the projection TV areas, MVP. This ex-audio and the bigger type projection TV. This category—the market is shrinking because of the competitive situation with the PDP, and also the other LCD products’ pricing is so competitive. So this category is losing share. That’s one of the reasons why we couldn’t achieve the expected profit of the projection radios.

But overall we are frankly speaking, our product’s competitiveness of this category was not so good compared to the other completed. The reason of this is -- our competitors introduced the full high definition type model this April and May timeframe, but our plan was to introduce two of the models in August and September timeframe. That’s kind of the mistake of the alignment this year. So we are confident that we can come back when we start to sell those new products in August and September timeframe. So this first quarter, our product was not so competitive, so that’s the main reason.

Evan Wilson – Pacific Crest

Thank you.

Operator

And our next question comes form the line of Daniel Ernst of Hudson Square Research. Please proceed.

Daniel Ernst – Hudson Square Research

Yes, good morning and good evening as the occasion may be. Thanks for taking my questions. I have three questions if I might. First, on the Olsiki TV business, again, on the call this morning or this evening in Tokyo, you mentioned that roughly half of the loss in the TV segment was attributed to the LCD business, and I was just wondering if you could walk me through some of those components. I understand pricing in Europe was more pressured, and didn’t have the exact line up for full HD. But you know a close to negative 10% margin on the LCD business seems a little bit surprising relative to your peers, and maybe perhaps you had some mark downs of inventory that are included in that non recurring charges. And then second, on the [semicanca] business, could you just generally say do you expect this level of positive operating margins maintained through the year? And third question, on the Pictures business, despite a great many hits and many hits coming to DVD with higher margin sales, I think we’ve characterized the operating margin now, its under 2%, and it was 4.5% in the fiscal year ending March ‘07. Relative to your peers in Hollywood, its certainly less, and I was wondering if you could talk about the opportunity to bring margins up in Pictures. Thank you.

Nobuyuki Oneda

Yeah. As I explained in the daytime, the LCD businesses in Europe was mostly affected because of the Samsung (inaudible). And particularly the small size, like the 32 inches, was pretty much affected. So yes the DOWE margin was the loss of about 10%, that may be correct. But as I said, this situation may be include when we introduce the new models in August and September period, so please consider, this is not the continuous situation for this category.

Daniel Ernst – Hudson Square Research

Ok.

Operator

And our next question comes from the line of --

Unidentified Executive

Um Michelle hold on one second. We had two more questions to answer for Dan.

Operator

I apologize Sir.

Robert Wiesenthal

Lets talk about the Pictures question again, and we say this pretty often on this call. You really can’t look at the pictures business on a quarter by quarter basis, especially in terms of margins. It can be lumpy. We had a very big film in spite of [inaudible] three with a lot of revenue this quarter but very little profit due to the marketing costs which we incurred. The profits of Spiderman which is exceptionally profitable film will come in the third and fourth quarter when the DVD comes out. But in terms of overall margins I want to make sure that we don’t characterize our margins as being low, I think we’re probably right where we should be on a studio to studio basis for the film group. Obviously a lot of our peers have other acts, such as cable networks and O&O station groups that have higher margins than the film business, but I think Sony Pictures is where they should be in a top quartile of operating margin. And again, as we’ve said before we have a goal of a 10% operating margin for our studio.

Nobuyuki Oneda

Semi conductors profitability for the rest of the fiscal year would be maintained at the level of the first quarter. We don’t see any downside possibility of semi conductor businesses, unless there could be some big adjustment of the PlayStation business.

Robert Wiesenthal

Ok next question please.

Operator

And our next question comes from the line of Jessica Reese Cohen of Merryl Lynch.

Jessica Reese Cohen – Merryl Lynch

Thanks. These questions are for Bob. Why is there no book basis on MGM? And then a couple of questions on music. What JV was sold and could you talk about trends in -- expectations for second calendar second half of ’07? What kind of changes are you making to A & R marketing? And should we expect further restructuring charges?

Robert Wiesenthal

Sure. Lets start with MGM. As you may know, this was an LBO and the way the equity returns were divvied up to the partners were based on a ticking preferred security. There was a very large non-cash pay security that generated a tremendous amount of book loss, so the performance of MGM cannot be looked out on a net income basis, can only be looked at on a cash flow basis. As such, on a net income basis, due to pit preferred, there were lots of book losses, and we have enough book losses to cover our investments at this point. We remain confident, though, that MGM is going to be a very attractive investment for us in the long term. And obviously, it’s been helpful to us in terms of our film products—there’s Bond and Rocky on the distribution side.

With respect to Sony BMG, it was disclosed that there was a sale of our interest in [atchay] to Universal. And that was obviously the big asset there was Maroon 5. So that was partially responsible for some of the improvements for the quarter.

And in terms of trends that we see, obviously, digital continues to be very large in terms of the percentage basis of the revenues—of total revenues, I think right now, we’re looking over, I think about 21% of total revenues on the digital side in the US and about 13% worldwide. So it’s a bigger piece of our pie and we’re obviously moving towards a model that—it really has much more of a focus in terms of match your tones, ring tones and downloads.

In terms of restructuring, I think we’re expecting about $75 million for the year. We’re right where we should be. I always leave open the possibility of further restructuring, but I think the integration is really largely behind us at Sony BMG, and we’re now enjoying a lot of the benefits of that merger. Obviously you can see it partially in terms of performance this quarter.

Jessica Reese Cohen – Merryl Lynch

And then can I ask one follow-up. It looks like, given this summer releases; it’s going to be a very, very crowded 4th calendar quarter home video release schedule. Would you consider moving Spiderman, given the outpouring of titles for the holiday season?

Robert Wiesenthal

Are you saying, in terms of the home video release?

Jessica Reese Cohen – Merryl Lynch

The home video release.

Robert Wiesenthal

I think that, we obviously Spiderman is a franchise on it’s own, and we’re very comfortable with the ability to compete in the market.

Jessica Reese Cohen – Merryl Lynch

Yea, Alrighty, thank you.

Robert Wiesenthal

Thanks, Jess

Operator

(Operator Instructions)

And our next question comes from the line of (unidentified analyst). Please proceed.

Unidentified Analyst

Hello, thanks a lot. A few, quick questions. When you talk about cautiousness for electronics in games. I was wondering if you could go in a bit deeper. You mentioned pricing as one element. Are there any economic or consumer spending concerns over arching, and what in particular would the game business are you concerned about, or cautious about for the rest of the year? As for comparison purposes, can you give us the production shipments for the PS3 as they would have been reported last year, so we can see what the differential is? And finally, you mentioned in the four-year results that you’re planning a sale-leaseback on your headquarters. Can you give us a view on timing, when that might be booked in the P&L?

Nobuyuki Oneda

Yea, the pricing of LCD television is of course one of our concerns for the rest of the fiscal year. As you know, we will sell close to the 10 million LCD televisions within this fiscal year. And, if our projection of the pricing is deteriorating more than 5%, average basis for the annual basis, then it could affect the $500 million, so that’s one of the reasons why that we have to be cautious about the profitability of the TV business. For example, this quarter, in Europe, our price deterioration, was 5- 7,8,10% bigger than we expected.

If that situation would continue global basis, that impact is so huge, that’s one of the reasons why we are taking some cautious stance of this fiscal year.

And the second is the game is also another concern is the bigger services expected from now on and we have so many new plans, sales, the promotion plans, are starting from now. For example, we recently reduced the Play Station 3 from 599 to 499, and we also reduced, at the same time, to $599 with the 80-G products and with bundling of the software. Those are the new promotion programs, which started very recently, so we have to very carefully watch for those results.

Same type of promotion would be made in Europe. For example, 60G model we will bundle the two softwares and possibly the two controllers with the 599 Euro; so those kinds of programs we really have to be very careful, what would be the result of those in a promotion. That’s why we have to be a little more, cautious about those situations.

Unidentified Analyst

So, if I can just clarify, your cautiousness is on profitability, rather than sales.

Nobuyuki Oneda

You mean in the area of the LCD, yes. The cautious is primary because of the profitability.

Unidentified Analyst

Ok, thank you, and on the production shipments, what might be the comparisons, versus previous quarters?

Nobuyuki Oneda

The previous quarter, you mean the fourth quarter?

Unidentified Analyst

I’m just curious, no, for this quarter, if you could give us what the unit numbers would be, from a production standpoint, as a comparison.

Nobuyuki Oneda

Starting from this quarter, we decided not to disclose the production quantity, but it is obviously higher than what we sold this quarter, because as I said, that the selling season is November and December time-frame, but the production capacity is not so huge enough to produce the huge quantity in the November and December period. So we have to increase the inventory starting from now on, so the inventory level is a little higher.

Unidentified Analyst

Ok, thank you. And the headquarters?

Nobuyuki Oneda

Headquarters? We will record the setting of the headquarter [Pike. Would be six hundred quarter. Six hundred quarter.]

Unidentified Analyst

Great, thank you very much.

Operator

And our next question comes from the line of C. J. Muse, of Lehman Brothers. Please proceed.

C. J. Muse - Lehman Brothers

Good morning, thank you for taking my call. I have a couple of quick questions that are specific to your LCD TV. First off, can you help us with what the mix of the sales look like by size in the June quarter, and what your expectations are for the second half, and then in terms of inventory, can you just give us an update as to where you stand today as well as what your view is for the industry and whether or not the excess 40 inch inventory has improved at all. I guess that’s it.

Nobuyuki Oneda

The -- we did not disclose the inch break by quota, by quota basis, but overall in the quantity for the past quarter and second quarter, I would say that the second quarter quantity is higher than the first quarter, and the 40 inch inventory situation would be improved, is that your question?

C. J. Muse - Lehman Brothers

I guess it’s two-fold, first, are you comfortable with where your inventory is today; how does it compare to where you were, say, a year ago at this time, and what your expectations are for your inventory going forward as well as the health of inventory in the channel for the entire industry?

Nobuyuki Oneda

Yea, I think that our inventory level is reasonable level I think at this moment. Even though because the quantity was slightly less now what we expected, so therefore slightly higher-- that within our expected, the level of the inventory.

Unidentified Company Representative

Operator, do we have any more questions?

Operator

Ladies and gentlemen, due to time constraints this concludes the question and answer portion of today’s conference call. I would like to turn the presentation back over to management for any closing remarks.

Unidentified Company Representative

Thank you very much, Michelle. With that we’d like to conclude today’s conference call, and to remind everyone of our investor relations contact information. In Tokyo I.R. can be reached at 81 3 6748 2180. In New York our team can be reached at 212 833 6722, and in London the I.R. team is available 44 207 444 9713.

Again, thank you very much for joining us, and that concludes today’s call.

Ladies and gentlemen, thank you for your participation in today’s conference call. This does conclude your presentation, and you may now disconnect. Have a great day.

Copyright policy: All transcripts on this site are copyright Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY’S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY’S CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY’S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Sony F1Q07 (Qtr End 6/30/07) Earnings Call Transcript
This Transcript
All Transcripts