Toshiba Revises 2007 Earnings Forecast, Says It Will Have Lost $665M19 Mar, 2008 By: Chris Tribbey
Toshiba on March 19 revised its earnings forecast for the fiscal year 2007 (ending March 31), telling investors it would incur $665 million in losses for the year due to discontinuing the HD DVD business. In total, Toshiba stands to lose nearly $1 billion due to HD DVD's demise.
Toshiba bowed out of the next-generation DVD format war with Sony-backed Blu-ray Disc last month.
“Net sales are expected to be lower than previously forecast, reflecting the discontinuation of the HD DVD business and the decline in sales prices of NAND flash memories,” Toshiba wrote in a note to investors. “… Income before income taxes and minority interest and net income are … expected to decrease from the previous forecast, primarily on costs incurred in the discontinuation of the HD DVD business.”
Overall, Toshiba lowered its profit expectations for the fiscal year to $1.26 billion.