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Toshiba Profits Down 95% in Q1

25 Apr, 2008 By: Chris Tribbey

Year-over-year, Toshiba Corp.'s profits fell 95% in the 2008 first quarter (ended March 31), the Japanese company reported in an earnings statement April 25.

Not surprisingly, a one-time loss of $461 million for pulling the plug on the HD DVD format contributed to the profit estimate of $12 million. That compares to $251.5 million during the same period in 2007.

After a slew of retailer and studio bailouts on the format, in favor of Blu-ray Disc, Toshiba in February shut down its HD DVD assembly lines.

“Our net profit sharply fell due to the end of [the] HD DVD business,” Toshiba spokeswoman Hiroko Mochida told The Associated Press.

Most of the decline came from shutting down assembly lines and dealing with inventory, according to Toshiba.

Toshiba has told investors that in total, it expects to lose roughly $1 billion due to the failed next-generation optical-disc format.

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