Softbank Corp. said Friday it registered a consolidated net profit of 8.45 billion yen in fiscal 1999, down 77.5 percent from the previous year.
Profit per share in fiscal 1999, which ended March 31 this year, was 78.05 yen, down from 365.38 yen.
Softbank attributed the decrease to an extraordinary loss of around 196 billion yen in connection with the sale of U.S. subsidiary Kingston Technology Co. and the sale of shares in another U.S. subsidiary, Ziff-Davis Inc.
To cover the loss, Softbank posted an extraordinary profit of 218.2 billion yen, mainly by selling shares in Trend Micro Inc. and Softbank Technology Corp.
Softbank, a holding company for Internet-related businesses, reported a consolidated pretax loss of 51.93 billion yen, compared with the previous year’s loss of 15.45 billion yen, on group sales of 423.22 billion yen, down 19.9 percent. The pretax loss resulted in part from a currency-exchange loss of 47.5 billion yen involving U.S. subsidiary Softbank Holdings Inc., while the sale of Kingston Technology caused the decrease in group sales, it said.
On an unconsolidated basis, Softbank posted a pretax profit of 10.53 billion yen in fiscal 1999, down 50.5 percent from the previous year, and a net profit of 53.59 billion yen, up 355.5 percent, on a 47.1 percent fall in sales to 107.55 billion yen.
The company plans to keep its annual dividend unchanged at 20 yen per share for fiscal 1999.
For fiscal 2000, Softbank expects an unconsolidated pretax loss of 2.5 billion yen and a net profit of 3 billion yen, and said it will cut its annual dividend to 7 yen.
Other projections will be released when they are fixed, Softbank said.
Announcing the fiscal 1999 results, Softbank President Masayoshi Son said that his company, with annual fundraising of around 300 billion yen, has enough funds on hand to meet financial requirements such as buying back corporate bonds.
Son made the remark to after suggestions that Softbank is facing a cash shortage.