Efforts of reducing costs have helped Japan Display, was able to claw back its losses for the past three months. However, the decrease in sales stopped the celebrations short as some Chinese smartphone makers turned its backs away from its liquid crystal display screens.
Japan Display is the maker of smartphone screens for various companies including Apple reported a net loss amounting to ¥1.77 billion (£12.4 million) in its first-quarter report, at a decrease of approximately 95 percent from the ¥31.46 billion that was reported in the same period during the previous year.
Japan Display placed this down to the “benefits of structural reforms” which were imposed at the end of the previous fiscal year, plus some extra income from a rise in the capital of an affiliate business.
However, the sales of the company took a sharp decline in the period between April to June dropping by 45 percent year-on-year as smartphone makers now adopt OLED screens over the preferred liquid crystal display (LCD) offering of Japan Display.
According to data from Thomson Reuters, the net loss of the company came in much further below the ¥15.44 billion that was previously estimated by some analysts.
Takanobu Oshima, the chief financial officer of Japan Display, remained to be confident that the sales would increase over the following quarter, forecasting an increase of 50 percent in the current quarter (from the last quarter) as the production of new LCD panels ramps up.
The firm plans to manufacture smartphone OLED screens by next year, leaving it far behind some of its competitors who are now gaining market share from tech businesses such as Huawei, Xiaomi, and Apple.
The Japanese screen maker is eager on looking for a partner who can help in financing the launch of a mass production line, which analysts have said to typically cost over 200 billion yen ($1.8 billion).
The share price of Japan Display remained flat as the markets closed in Asia.