Sony to Raise $4B to Ramp up Production of Sensors

**interested_observer** · 07-02-2015, 01:42 AM

Sony to Raise $4B to Ramp up Production of Sensors

fredralphfred · 07-02-2015, 02:34 AM - **1 Like**

They didn't give a link for the Kickstarter project. Do you happen to know it?

**Rondec** · 07-02-2015, 02:40 AM

I wonder if they are concerned that Samsung and Toshiba are catching up with them with regard to the quality of the sensors produced. Camera companies have several options these days to go with, with regard to image sensor and while Sony still has an edge, it isn't as big as it once was.

LensBeginner · 07-02-2015, 02:44 AM

Originally posted by fredralphfred

They didn't give a link for the Kickstarter project. Do you happen to know it?

LoL good one!

fredralphfred · 07-02-2015, 04:24 AM

Originally posted by LensBeginner

LoL good one!

I like to get in on the ground floor of these things.

**clackers** · 07-02-2015, 05:35 AM

Their share price dropped when investors found out this plan.

fredralphfred · 07-04-2015, 01:08 AM - **1 Like**

Originally posted by clackers

Their share price dropped when investors found out this plan.

Well, yeah. Their shares are getting diluted. On the other hand, if they'd just started a Kickstarter project . . .

**RobA_Oz** · 07-04-2015, 05:04 PM

Even with the specialist equipment and facilities needed to make a variety of sensors, $4B is a lot of money. If the problem was inability to supply 35mm or MF sensors, even APS-C sensors, I could understand the sum of money they're looking for, but if their immediate problem is phone sensors, the yield rate from semiconductor wafers will be high, and the facility footprint would be small compared with that for other sized sensors. So, given the Japanese penchant for long-term planning, I imagine that this is to finance plant development over the medium to long term, rather than to meet immediate needs, or even projected needs. If they got their projections wrong, they could be in much worse trouble than they've been in recently, with such a large up-front investment, rather than taking a more flexible approach to development.

The immediate thought I had was that Ricoh could do worse than look at this investment to not only provide for their small camera operation, but to revise their copier technology. The time for the established linear mechanical scan may be coming to an end, and its replacement with a camera-like scanner would provide benefits to customers, principally reduced scan times. I dare say someone in Ricoh is looking at its future plans and doing the cost-benefit analysis.

**monochrome** · 07-04-2015, 06:18 PM

Ricoh just finished building a $1.4BBN plant in China to produce imaging systems and printers. Clearly the technology is converging but who knows whether Ricoh has the appetite for another major capital round.

**hjoseph7** · 07-04-2015, 06:56 PM

They got so much money they don't know what to do with it...

osv · 07-04-2015, 08:14 PM

Originally posted by clackers

Their share price dropped when investors found out this plan.

as fred indicated...

"Investors showed trepidation about the plan. Sony’s share price took a brisk dip upon hearing the news, dropping 8.3% by market close. Shareholders are likely concerned that the new stock will dilute the value of existing shares, a common reaction when companies announce similar sales."
https://fortune.com/2015/06/30/sony-stock-bond-sale/

**monochrome** · 07-05-2015, 04:07 AM

Originally posted by osv

as fred indicated...

"Investors showed trepidation about the plan. Sony’s share price took a brisk dip upon hearing the news, dropping 8.3% by market close. Shareholders are likely concerned that the new stock will dilute the value of existing shares, a common reaction when companies announce similar sales."
https://fortune.com/2015/06/30/sony-stock-bond-sale/

Concerned? I should say so. If the number of shares outstanding rises and shareholder equity doesn't rise by the same percentage, equity per common share declines. It's simple math. Return on that new equity must be higher than on your old equity in order for you to have the same nominal return - which just doesn't seem likely.

Furthermore, you lose some percentage of the voting value of your shares.

fredralphfred · 07-05-2015, 12:03 PM

Originally posted by monochrome

. . . If the number of shares outstanding rises and shareholder equity doesn't rise by the same percentage, equity per common share declines. . .

Let's hope they buy sensor foundries instead of lots of donuts.

**clackers** · 07-05-2015, 12:12 PM

Originally posted by fredralphfred

Let's hope they buy sensor foundries instead of lots of donuts.

They've copped big losses in recent years.

This will be considered necessary, and they won't waste a yen.

Liquidity is a real problem. They've already sold off prime real estate.

osv · 07-05-2015, 12:14 PM

Originally posted by monochrome

which just doesn't seem likely.

o.k, i see, this is share sale.

07-02-2015, 01:42 AM	#1
interested_observer Loyal Site Supporter Join Date: Jun 2009 Location: Tumbleweed, Arizona Photos: Gallery \| Albums Posts: 5,707	Sony to Raise $4B to Ramp up Production of Sensors Sony to Raise $4B to Ramp up Production of Sensors

07-05-2015, 12:12 PM	#14
clackers Otis Memorial Pentaxian Join Date: Jul 2013 Location: Melbourne Photos: Albums Posts: 16,397	Originally posted by fredralphfred Let's hope they buy sensor foundries instead of lots of donuts. They've copped big losses in recent years. This will be considered necessary, and they won't waste a yen. Liquidity is a real problem. They've already sold off prime real estate. Last edited by clackers; 07-05-2015 at 12:25 PM.

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07-02-2015, 02:34 AM - 1 Like	#2
fredralphfred Senior Member Join Date: Dec 2012 Location: Orting, WA Posts: 252	They didn't give a link for the Kickstarter project. Do you happen to know it?

07-02-2015, 02:40 AM	#3
Rondec Loyal Site Supporter Join Date: Mar 2009 Location: Gladys, Virginia Photos: Gallery Posts: 27,653	I wonder if they are concerned that Samsung and Toshiba are catching up with them with regard to the quality of the sensors produced. Camera companies have several options these days to go with, with regard to image sensor and while Sony still has an edge, it isn't as big as it once was.

07-02-2015, 02:44 AM	#4
LensBeginner Veteran Member Join Date: Sep 2014 Photos: Albums Posts: 4,696	Originally posted by fredralphfred They didn't give a link for the Kickstarter project. Do you happen to know it? LoL good one!

07-02-2015, 04:24 AM	#5
fredralphfred Senior Member Join Date: Dec 2012 Location: Orting, WA Posts: 252	Originally posted by LensBeginner LoL good one! I like to get in on the ground floor of these things.

07-02-2015, 05:35 AM	#6
clackers Otis Memorial Pentaxian Join Date: Jul 2013 Location: Melbourne Photos: Albums Posts: 16,397	Their share price dropped when investors found out this plan.

07-04-2015, 01:08 AM - 1 Like	#7
fredralphfred Senior Member Join Date: Dec 2012 Location: Orting, WA Posts: 252	Originally posted by clackers Their share price dropped when investors found out this plan. Well, yeah. Their shares are getting diluted. On the other hand, if they'd just started a Kickstarter project . . .

07-04-2015, 05:04 PM	#8
RobA_Oz Site Supporter Join Date: Nov 2008 Location: Tasmania, Australia Photos: Gallery Posts: 8,197	Even with the specialist equipment and facilities needed to make a variety of sensors, $4B is a lot of money. If the problem was inability to supply 35mm or MF sensors, even APS-C sensors, I could understand the sum of money they're looking for, but if their immediate problem is phone sensors, the yield rate from semiconductor wafers will be high, and the facility footprint would be small compared with that for other sized sensors. So, given the Japanese penchant for long-term planning, I imagine that this is to finance plant development over the medium to long term, rather than to meet immediate needs, or even projected needs. If they got their projections wrong, they could be in much worse trouble than they've been in recently, with such a large up-front investment, rather than taking a more flexible approach to development. The immediate thought I had was that Ricoh could do worse than look at this investment to not only provide for their small camera operation, but to revise their copier technology. The time for the established linear mechanical scan may be coming to an end, and its replacement with a camera-like scanner would provide benefits to customers, principally reduced scan times. I dare say someone in Ricoh is looking at its future plans and doing the cost-benefit analysis.

07-04-2015, 06:18 PM	#9
monochrome Loyal Site Supporter Join Date: Mar 2008 Location: Working From Home Photos: Gallery \| Albums Posts: 26,276	Ricoh just finished building a $1.4BBN plant in China to produce imaging systems and printers. Clearly the technology is converging but who knows whether Ricoh has the appetite for another major capital round.

07-04-2015, 06:56 PM	#10
hjoseph7 Site Supporter Join Date: May 2014 Location: Minnesota Photos: Gallery \| Albums Posts: 2,047	They got so much money they don't know what to do with it...

07-04-2015, 08:14 PM	#11
osv Veteran Member Join Date: Mar 2007 Location: So Cal Photos: Gallery Posts: 2,080	Originally posted by clackers Their share price dropped when investors found out this plan. as fred indicated... "Investors showed trepidation about the plan. Sony’s share price took a brisk dip upon hearing the news, dropping 8.3% by market close. Shareholders are likely concerned that the new stock will dilute the value of existing shares, a common reaction when companies announce similar sales." https://fortune.com/2015/06/30/sony-stock-bond-sale/

07-05-2015, 04:07 AM	#12
monochrome Loyal Site Supporter Join Date: Mar 2008 Location: Working From Home Photos: Gallery \| Albums Posts: 26,276	Originally posted by osv as fred indicated... "Investors showed trepidation about the plan. Sony’s share price took a brisk dip upon hearing the news, dropping 8.3% by market close. Shareholders are likely concerned that the new stock will dilute the value of existing shares, a common reaction when companies announce similar sales." https://fortune.com/2015/06/30/sony-stock-bond-sale/ Concerned? I should say so. If the number of shares outstanding rises and shareholder equity doesn't rise by the same percentage, equity per common share declines. It's simple math. Return on that new equity must be higher than on your old equity in order for you to have the same nominal return - which just doesn't seem likely. Furthermore, you lose some percentage of the voting value of your shares.

07-05-2015, 12:03 PM	#13
fredralphfred Senior Member Join Date: Dec 2012 Location: Orting, WA Posts: 252	Originally posted by monochrome . . . If the number of shares outstanding rises and shareholder equity doesn't rise by the same percentage, equity per common share declines. . . Let's hope they buy sensor foundries instead of lots of donuts.

07-05-2015, 12:14 PM	#15
osv Veteran Member Join Date: Mar 2007 Location: So Cal Photos: Gallery Posts: 2,080	Originally posted by monochrome which just doesn't seem likely. o.k, i see, this is share sale.