Disgraced PC Company Toshiba who for the past 7 years have overstated their profits, is close to making a decision as to whether they will exit the PC market. Company officials at IFA told ChannelNews that the new management has “no appetite” for the “loss making” PC business.
IFA:Toshiba Tipped To Be Close To Quitting PC Market As Losses Mount
One Toshiba PC executive at IFA said “There are several people at Toshiba who would like to know whether they will have a job at the end of the year”.
With entrances to IFA festooned in Toshiba banners one senior executive said “This could be Toshiba’s last fling”.
He then went on to explain how Japanese Companies who are struggling to compete will often have “one last marketing fling” before quitting a market.
For the past financial year, Toshiba reported AU$456 million net loss, a major contributor was the Companies PC Division.
In July Toshiba president Hisao Tanaka and his predecessor Norio Sasaki resigned over a $US1.2 billion accounting scandal blamed on management’s overzealous pursuit of profits.
The new management team which includes outside directors are believed to have already indicated that they will either license the brand name to another PC manufacturer in a similar way to what IBM did when they licensed their IBM ThinkPad business to Lenovo or get out of the PC business altogether.
Soon after the market opened yesterday, Toshiba said that for the period from the fiscal year ending March 2009 until the third quarter of fiscal 2014 ending in December, its net profits were a total of US$2.7bn lower than previously stated.
The disgraced Company drastically reduced its earnings for the past seven years in yesterday’s announcement.
The release of the earnings followed an additional delay after the company said last week it had found further accounting irregularities after reshuffling its management and board earlier this year.
Normally, Japanese companies such as Toshiba with fiscal years ending in March report full-year results in May.
After originally forecasting a net profit of ?120bn for the last fiscal year, the company reversed its guidance to a loss, and delayed the results when the accounting problems came to light earlier this year. An independent panel said in July the company had overstated profits over a seven-year period.
During the past four months the three most recent Toshiba chief executives stepped down from their roles – one as CEO, another as vice-chairman, and the third as adviser.