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Things seem to be getting a little tight at Sharp Japan Inc. as far as finances go. They might be forced to seek a partnership with Hon Hai Electronics and sell off some assets.

http://www.industryleadersmaga...artner-with-hon-hai/

How do you think will this effect their MFP business?
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First thoughts from reading the article is if they are that short of cash R & D will could be one of the first cuts, and then the question is which arm of the R & D department do you cut?

Copiers, and printers produce additional revenue stream with consumables and parts. Would they give this up and sell the copier division just to get a quick fix of cash and then do with out that revenue stream in the future?
One thing to note -

Sharp’s Information Equipment group, which includes MFPs, is one of its only consistently profitable divisions. Not forever - but at least for now.

One other thing to note is for Sharp (very proud Japanese company) to take an investment from a competing Taiwanese company means this was a bold move. They even took time at the Sharp dealer meeting to explain it (not sure if the dealers gave a sh*t) but that is a big deal.

Sharp spent a fortune on its new 10G LCD facility, but by the time they finished building it LCDs had lost so much value that they could never pay it off. Sharp is in similar trouble with Solar.
I disagree about the rumor. A Nikkei analyst reported this in Japan. I'm thinking why would this analyst put his neck on the line, they have to have heard something.

I'll put this into perspective with recent baseball trade talks, an ESPN analyst reported that cole hammels was on the trading block with the Phillies. The GM of the Phillies did an interview at a local radio sports show and stated NO we are not looking to trade him and no we are not looking to trade our other top players either. The analyst and others still reported that this was true. Weeks later many of the Phillies were traded, the cashed in the season early, Hammels was not traded however it was not because they did want to, they just couldn't get the "right" package.

This is exactly what I'm seeing from Sharp USA, they need to hold the fort together until the ball drops, and we don't know what the outcome will be. What we do know is that the Sharp we know today will not be the Sharp we will know tomorrow.

It may be weeks or months before the dust settles, but I think KYO is the right choice if any. However, since all of the press there may b a pull back from Sharp in weeks to come.

Art
It is very easy.

12 months from now, when all of the smoke blows away, Sharp Corp Japan will either be in or out of the copier business.

I personally think, in.

Sept 2013 is a "drop dead" date for Sharp Corp Japan re financial commitments.

12 months is only four quarters, which can be a long time in the copier business.

I acknowledge Sharp has made huge $ and continuing $ commitments in their very strong belief of the continuation of the current copier business, as is.

Is Sharp Corp profitable in the copier business, probably 99% true.

Will Sharp lose business because of the current potential business uncertainty, probably 99% true. There are very good competitive copier reps who can spin doubt.

The door to doubt has been opened. Sharp has to close it! That door will not close for several months based upon Sharp proving to the world it is not so!
Last edited by SalesServiceGuy
Guys,

Think how this must be effecting the Sharp Dealer community! Even if it turns out not to be true, which I think it is, the competition will use FUD (Fear, Uncertainty, and Doubt) to stop customers from buying a Sharp MFD.

I know of one small Sharp \ Canon dealer based in RI that Sharp has funded them to open up in Boston. He hired a top Sales Manager ($$$) and leased space. If Sharp sells their copier business what happens to that agreement? Even if they honor the agreement they just made it 10 times harder for this RI dealer to sell Sharp effectively in Boston.

How about other dealers that have Sharp as their MAIN brand? I am not sure if there are any single line dealers anymore? But these Sharp dealers must be strengthening the relationship with their second line, and maybe reaching out to other Manufactures.

If Kyrocera does indeed buy Sharp, then the Kyrocera Dealers and maybe the Kyrocera \ Sharp dual line dealers will be the big winners.

The other big winner regardless of what happens is all of us who sell against Sharp. The uncertainty alone will tilt the playing field away from Sharp!
Read the Reuters post from Aug 17 - Sharp is "revamping".

"The Nikkei had earlier reported that Sharp was considering selling its copier, air-conditioner and LED businesses, with Kyocera Corp (6971.T), Daiwa House Industry Co (1925.T) and Daikin Industries Ltd (6367.T) among possible buyers or investors.

Sharp denied both reports, while a Hon Hai spokesman declined to comment.

Separately, the Jiji News Agency reported that Osaka-based Sharp was seeking a 50 billion yen ($630 million) capital increase, and is approaching U.S. investment funds, Kyocera, Toshiba Corp (6502.T), and others.

"It is true we are considering various matters for the recovery of our performance, and we will swiftly announce them if we make any decisions that need to be disclosed," Sharp said in one of its statements on Friday."
quote:
Originally posted by yeti:
So looks like this was all just a rumor

anybody think differently with the letter sharp just released?


Read carefully. You are all in the copier business, this is a business of careful word craft.

"The Nikkei had earlier reported that Sharp was considering selling its copier, air-conditioner and LED businesses, with Kyocera Corp, Daiwa House Industry Co and Daikin Industries Ltd among possible buyers or investors.

Sharp denied both reports, while a Hon Hai spokesman declined to comment. (My insert: Which owns 10% and wants 20%)

Separately, the Jiji News Agency reported that Osaka-based Sharp was seeking a 50 billion yen ($630 million) capital increase, and is approaching U.S. investment funds, Kyocera, Toshiba Corp, and others."

Wait a minute, What? They are not selling to Kyocera, just asking them for money? Oh that makes it better, or different. If that news leak occured prior to closing the deal (if there is or was a deal working wink wink) then somebody will be falling on a sword . I dont beleive Sharp is that careless. I think it is done and over with either way you decide.

If it walks like a duck, quacks like a duck and swims like duck, It's a duck!
Last edited by Yoda
quote:
Originally posted by copierlady:
Read the Reuters post from Aug 17 - Sharp is "revamping".

"The Nikkei had earlier reported that Sharp was considering selling its copier, air-conditioner and LED businesses, with Kyocera Corp (6971.T), Daiwa House Industry Co (1925.T) and Daikin Industries Ltd (6367.T) among possible buyers or investors.

Sharp denied both reports, while a Hon Hai spokesman declined to comment.

Separately, the Jiji News Agency reported that Osaka-based Sharp was seeking a 50 billion yen ($630 million) capital increase, and is approaching U.S. investment funds, Kyocera, Toshiba Corp (6502.T), and others.

"It is true we are considering various matters for the recovery of our performance, and we will swiftly announce them if we make any decisions that need to be disclosed," Sharp said in one of its statements on Friday."


Update 4 from Reuters (buried in the middle of the article)

"Sharp's two main lenders, units of Mizuho Financial Group and Mitsubishi UFJ Financial Group, are poring over the company's restructuring plan to determine how much it needs to survive as it also renegotiates terms of an investment by Taiwan's Hon Hai Precision Industry.

The Nikkei business daily said on Friday that Hon Hai was looking to double its stake in Sharp to about 20 percent from a 9.9 percent agreed in March, and wants to pay about 200 yen per share, compared with the 550 yen initially agreed.

The Nikkei had earlier reported that Sharp was considering selling its copier, air-conditioner and LED businesses, with Kyocera Corp, Daiwa House Industry Co and Daikin Industries Ltd among possible buyers or investors.

Sharp denied both reports, while a Hon Hai spokesman declined to comment."

Thats one way to get it from 550 yen per share to 200.
Yoda

Nice work, I just read the story about Hon Hai wanting to decrease to 200 yen.

Reports are now conflicting and yes you have to try and read between the lines. I'll go out on a limb and beleive it's a done deal with Kyocera, I could be wrong (been wrong before), but there is just too much to this, maybe since the deal was not complete with Hon Hai, then why speak to Kyocera and Toshiba especially when they are competitors.
"Following the recent stock drop, Hon Hai has reopened talks to win a better deal that analysts estimate may yield Sharp only about a third of the 67 billion yen it was relying on to help bolster its finances.

That means Sharp may have to resort to selling other assets to make up the shortfall and convince lenders including Mizuho Financial Group and Mitsubishi UFJ Financial Group to help keep it solvent"
Toshiba Tec just spent $870M USD to buy IBM's Point of Sale division so I can only suspect they are financially and mentally "tapped out" to take on another big acquisition.

Toshiba Tec does relabel a Sharp low end copier known as an e203SD so there is some business relationship there.

I believe in the last 12 months Toshiba discontinued manufacturing LCD TV panels and began to source them from Sharp.
Last edited by SalesServiceGuy

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