Japan’s Sharp, a major supplier of LCD displays to Apple and other manufacturers, has warned that it may not survive if it can’t turn around its business, an admission that caught few off guard.
The Osaka-based manufacture said there is “material doubt” about its ability to continue operating in its earnings report filed Thursday. Sharp added, however, that it still believes it can cut costs and secure enough credit to survive. Its IGZO technology for mobile displays is likely to be a key element of its business strategy.
Companies with credit trouble must warn about possible concerns over their survival as part of their disclosure requirements.