TOKYO: Struggling Japanese TV maker Sharp Corp warned it might not be able to survive on its own, as it almost doubled its full-year net loss forecast to $ 5.6 billion, and said it was considering alliances with other companies.

In a statement, the company said it booked massive second-quarter losses and is seeing "serious negative operating cash flow." "This raises serious doubts about (our ability) to continue as a going concern," it said, adding it was taking steps, from pay cuts and asset sales to voluntary redundancies, to generate cash flow.

Sharp has been in talks for months with Hon Hai Precision Industry Co Ltd about the Taiwan-based group becoming its biggest shareholder. Sharp said it expected an agreement on that before a March deadline, but added it was considering other alliances as well.

"Perhaps it will not fail within this year, but I don't think Sharp has a viable business in the next 3-5 years," said Tetsuro Ii, CEO of Commons Asset Management in Tokyo.

"The company hasn't got much time left and they need to cut off businesses that they can, conserve cash and ... produce something that's really competitive."

Sharp CEO Takashi Okuda told reporters: "We have lots of great technology and we want to tap that asset to revive and make money, but I can't say we are now a company with that vitality."

Sharp, which makes Aquos TVs, almost doubled its forecast full-year net loss to 450 billion yen ($ 5.63 billion) after taking a $ 1.1 billion restructuring charge in July-September.

At an operating level, it sees a loss of 155 billion yen. But it said it would make an operating profit in the current second half — allowing its banks to justify a $4.6 billion bailout.

Sharp, Japan's leading maker of liquid crystal displays, has secured fresh loans from banks in return for a pledge to cut jobs, sell assets and return to profit. It has mortgaged most of its offices and factories in Japan, including one that makes displays for Apple's iPhone and iPad. It kept its forecast for TV sales this year at 8 million sets.

The bank loans may prove to be just a sticking plaster rather than a salvation, said Makoto Kikuchi, CEO at Myojo Asset Management.

"I don't think Sharp has a future. Even if it gets by this term, financial problems could emerge again next business year, and I don't see the banks coming to the rescue."

As it seeks survival, Sharp is further hampered by weakened finances.

At end-September, the company's shareholder equity ratio fell to below 10 percent — half the rate generally considered a healthy minimum.

Sharp shares have plunged more than 75 percent so far this year, while the benchmark Nikkei average has gained more than 5 percent.

Sharp fell 1.7 percent on Thursday ahead of its earnings release. Sony closed down 4 percent.