Japan Display reported on Wednesday another quarterly net loss on sluggish display sales and restructuring costs as the company is seeking to complete bailout deals with Apple and other investors.

The company, which makes more than its half revenue from Apple (LCDs), posted a net loss of 25.4 billion yen ($233 million) in the July-September quarter, wider than the 7.8 billion loss a year earlier.

The business environment continued to be severe due to stagnant sales of smartphones, our main display application product area, and intensifying competition from Chinese display makers who are gaining presence. Given these circumstances, in the first six months of FY 2019 JDI took steps to improve its business and financial aspects. Production facilities were subject to write down, some factories were closed and structural reforms were implemented that included partial shutdowns and significant personnel reductions. In addition, the company moved forward with efforts to implement capital enhancement measures.

Net sales in the first six months of the current fiscal year were 237,762 million yen, up 11.0% year on year (YoY), due in part to the start of shipments of major new products and advanced shipments of some other products. On the other hand, an inventory accumulation to support an increase in shipments of new products from the late second quarter contributed to operating profits in the first half of the previous fiscal year.

JDI has reached an agreement has been reached to work in good faith to increase the volume of purchase orders from Apple. Also, in cooperation with efforts to reinforce JDI's current financial standing, JDI and Apple have agreed that US company will defer 75% of the amount of their recoupments for a period of two years. Furthermore, from November 2019, Apple will provide additional funding support, including shortening the payment site for JDI.

Japan Display is seeking to raise at least 50 billion yen ($470 million), having had to scramble after Chinese investment firm Harvest suddenly pulled out of a bailout plan.

JDI's Mobile Device Category includes smartphone, tablet and other displays. Cumulative net sales in the first six months of FY 2019 in this category were 160,523 million yen (up 24.2% YoY for the same six-month period) and accounted for 67.6% of total company sales. In this category, while sales of displays for smartphones have been stagnant due to increased penetration of smartphones and longer smartphone holding periods, the competitive environment has become more severe as Chinese display manufacturers have been increasing production capacities. Nevertheless, JDI's sales increased YoY partly due in part to the start of shipments of major new products and advance shipments of some other products.

Sales of automotive displays were 52,411 million yen (down 7.4% YoY), accounting for 22.0% of total company sales. In the automotive display market, sales declined compared with the same period of the previous year due to sluggish automobile sales in China, Europe, the US and other regions.

Cumulative six-month net sales of displays for digital still cameras, wearable devices and other consumer electronics, were 24,827 million yen (down 12.5% YoY), accounting for 10.4% of total net sales. The non-mobile category saw higher sales for displays for wearable devices and VR, but sales of digital still camera displays were down due to market shrinkage. Shipments of high-end notebook PC displays declined under the impact of US-China trade frictions.