Published in Graphics

Japan Display continues to go begging

by on13 November 2019

Still waiting for Apple cash

Japan Display reported its 11th consecutive quarterly net loss on sluggish display sales and restructuring costs as the cash-strapped company scrambles to get a bailout deal from Jobs' Mob.

The liquid crystal display (LCD) maker for smartphones, which gets more than half of its revenue from Apple, posted a net loss of $233 million in the July-September quarter, bigger than last year's loss.

Japan Display, money-losing for the past five years due to slowing Apple iPhone sales and the delayed adoption of organic light-emitting diode (OLED) screens, did not give a full year earnings outlook.

But CEO Minoru Kikuoka, who took the helm in September, told an earnings briefing the company turned profitable in October.

Japan Display is seeking to raise at least $470 million, having had to scramble after Chinese investment firm Harvest suddenly pulled out of a bailout plan.

Of the planned bailout funds, Apple intends to invest $200 million, sources with direct knowledge of the talks have said.

Hong Kong-based Oasis Management is likely to contribute $150-180 million, Japan Display has said.

Concerns about an immediate cash shortfall have been allayed as Apple has agreed to shorten payment periods, a source familiar with the matter said.

Last modified on 13 November 2019
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