Sega Expected To Post First Operating Profit In 3 Years

Sega has not been profitable on an operating basis since 1998-1999. Chief Operating Officer Tetsu Kayama told CBS MarketWatch that Sega's restructuring is paying off earlier than the company had anticipated. Last year, Sega posted a loss of 69.2 billion yen ($540 million). Since Kayama took over last Spring, he's instituted many cost-cutting measures within the company, including selling off assets and staff reductions. Sega is still expected to post a group net loss of 15 billion yen this fiscal year, primarily due to restructuring charges and a lower valuation of its securities holdings.