SOFTBANK RELEASES PARENT EARNINGS FORECAST REVISION
Tokyo, Japan, March 31, 2000 - SOFTBANK CORP. (TSE: 9984) released revised parent earnings forecasts for the fiscal year ended March 31, 2000.
1. Parent earnings forecast for the fiscal year ending March 31, 2000 are as follows
| Net Sales | Ordinary Income | Net Income | |
|---|---|---|---|
| Forecast at interim(A) | 107,554 | 13,000 | 12,500 |
| Current revised forecast(B) | 107,554 | 10,000 | 52,500 |
| Difference(B)-(A) | 0 | -3,000 | 40,000 |
| Percentage change | 0% | -23.08% | 320.00% |
2. Causes for the revision of the parent earnings forecast.
SOFTBANK initially released a full year parent earnings forecast in November 1999, which incorporated the completion of SOFTBANK’s transformation to a pure holding company structure. The initial forecast anticipated that SOFTBANK, having only received interest payments during the second half of the current fiscal year, would record 0 yen net sales, 2 billion yen ordinary income, and 1 billion yen in net income. However, due to costs associated with issuing stock options (900 million yen), investment banking advisory fees associated with new business development and planning (500 million yen) as well as outsourcing fees paid to associated group companies (1.1 billion yen) incurred during the second half of the current fiscal year, SOFTBANK is significantly reducing the ordinary income forecast.
Additionally, due to gains recorded on the partial sale of SOFTBANK TECHNOLOGY CORP. and PASONA SOFTBANK INC. shares, SOFTBANK is significantly raising the net income forecast for the current fiscal year.
Reference
Parent earnings for the fiscal year ended March 31, 1999
| Net Sales | Ordinary Income | Net Income | |
|---|---|---|---|
| Full year earnings (Parent) | 203,454 | 21,270 | 11,764 |
3. SOFTBANK intends to release a consolidated earnings forecast for the year ended March 31, 2000, as soon as earnings for Ziff-Davis Inc.(NYSE: ZD), a consolidated subsidiary, are finalized. At present, these have not been finalized due to the revaluation of assets associated with the sale of various parts of Ziff-Davis’ business.
Contact
SOFTBANK FINANCE CORPORATION
Investor Relations Department
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