For the first quarter (April to June) of fiscal 2015, net sales were 618.3 billion yen, a decrease of 0.2% compared to the same period last year. The operating loss was 28.7 billion yen, and net loss attributable to Sharp Corporation was 33.9 billion yen.
Some factors had negative impact on sales performances, such as change of the business model in the European TV business, the sell-off of Sharp’s U.S. subsidiary solar power generation developer, and intensifying competition in LCDs for smartphones in the Chinese market. However, thanks to a dramatic increase in sales of camera modules, net sales remained at about the level of the same period last year.
An operating loss and net loss attributable to Sharp Corporation were caused by factors including planned production adjustments and strengthening sales of existing inventory of LCDs for mobile devices. Other loss-causing factors included increased cost measures associated with structural reforms, such as costs relating to reductions in the distribution inventory of LCD TVs.

Effective from the three months ended June 30, 2015, the sub total of "Digital Information Equipment," "Communications," and "Health and Environmental Equipment" is shown as "Consumer Electronics." Also, the "LCDs" product group was renamed the "Display Devices" and the "Electronic Devices" product group was renamed the "Electronic Components and Devices."

Looking at sales for the first quarter of fiscal 2015 by product group, sales for Electronic Components and Devices improved significantly, while Business Solutions maintained the same level as the same period last year. However, apart from these two, the other product groups fell below the previous year.
With regard to operating income by product group, Consumer Electronics, Energy Solutions, and Display Devices recorded operating losses.

For the first quarter of fiscal 2015, other income (expenses) improved compared to the same period of the previous year.
A reversal of provision for loss on litigation (resulting from discontinuance of the TFT LCD cartel case) and a receipt of settlement package (regarding the CRT TV cartel cases) were recorded as other income.
On the other hand, with the worsening of profitability, impairment losses were recorded on production equipment for Display Devices and Energy Solutions, and on buildings of subsidiaries in the U.S. and Mexico arising from structural reforms in the LCD TV business.

Cash and time deposits at the end of June 2015 were 214.2 billion yen, a decrease of 44.2 billion yen compared to the end of March 2015.
With the completion of the issuance of preferred shares and payment procedures, net assets at the end of the June 2015 were 243 billion yen and the equity ratio increased from 1.5% at the end of March 2015 to 12.3%.

Inventory at the end of June 2015 was 344.2 billion yen, an increase of 5.9 billion yen compared to the end of March 2015. The ratio vs. monthly sales rose from 1.46 months to 1.67 months.
While we pursued sales from inventory of LCDs for mobile devices (which increased at the end of March 2015), inventory increased for LCDs (PCs, tablets, and IA application), air conditioners, and other products, in preparation for the demand season in the second quarter and beyond as well as for the summer season.

Compared to the end of March 2015, interest-bearing debt at the end of June 2015 declined by 199.6 billion yen to 774.6 billion yen. This was due to repayment of debt using paid-in capital accompanying the preferred share issue. The ratio vs. monthly sales was declined from 4.20 months to 3.76 months.
Net interest-bearing debt decreased from 715.7 billion yen at the end of March 2015, by 155.3 billion yen, to 560.4 billion yen.