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[AP]Toshiba Profits Down 95% Due to HD-DVD - Page 3

post #21 of 39
Quote:
Originally Posted by CrackClocker View Post
I use to like Sony back in the day, I bet everybody else did too, but now:

Television Samsung > Sony
Headphones Sennheiser, AKG, Beyer, etc > Sony
Pre-Built Computers Dell, HP, etc > Sony (way overpriced)
Gaming Consoles Xbox360 = PS3 (who knows?)
I agree, Sony used to be awesome but now other companies are focusing on one consumer electronic and Sony isn't they are lacking the quality and their prices are based on the name of Sony which used to mean something 10 years ago.
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post #22 of 39
figure since a lot of you might be blind I'll make it easy.
read the topic.
this is not about sony.
this is about toshiba.

this is not about blue ray.
this is about toshiba

this is not about your experience with sony.
this is about toshiba losing money.


come on guys I understand getting a little off topic over time but before this thing even hit the end of the first page it was all about sony which is not even close to the topic at hand.

if you wish to bash sony you could do so without diluting this thread with stuff that isn't even related to the topic.


just to repost the article again just for those of you that might of missed it.

Quote:
Toshiba's net profit plunges
2 days ago

TOKYO (AP) — Japanese electronics maker Toshiba said Friday its net profit plummeted a staggering 95 percent in the January-March quarter due to losses related to its exit from the next-generation video HD DVD business.

Toshiba Corp.'s profit stood at 1.25 billion yen ($12 million), sharply down from 26.17 billion yen a year earlier.

"Our net profit sharply fell due to the end of HD DVD business," Toshiba spokeswoman Hiroko Mochida said, adding the one-time for pulling the plug on its HD DVD business cost about 48 billion yen ($461 million).

On top of that, the operation racked up a 60.2 billion yen ($580 million) operating loss for the fiscal year ended March 31, she said.

Toshiba announced the end of its HD DVD business in February. The technology had been competing against Blu-ray disc technology, backed by Sony Corp., Matsu****a Electric Industrial Co., which makes Panasonic brand products, five major Hollywood movie studios and others.

Toshiba said a drop in flash memory chip prices also hurt its results.

Quarterly revenue fell 3 percent from a year earlier to 2.09 trillion yen (US $20 billion).

In the financial year through March, Toshiba's net profit declined 7 percent to 127.4 billion yen ($1.2 billion).

The earnings report came after the end of trading on the Tokyo stock exchange. Shares in Toshiba fell 2 percent 848 yen ($8.15) on Friday.
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post #23 of 39
Quote:
Originally Posted by rx7speed View Post
figure since a lot of you might be blind I'll make it easy.
read the topic.
this is not about sony.
this is about toshiba.

this is not about blu-ray.
this is about toshiba

this is not about your experience with sony.
this is about toshiba losing money.


come on guys I understand getting a little off topic over time but before this thing even hit the end of the first page it was all about sony which is not even close to the topic at hand.

if you wish to bash sony you could do so without diluting this thread with stuff that isn't even related to the topic.


just to repost the article again just for those of you that might of missed it.
Fixed
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post #24 of 39
If the format war would have ended with cash to the studios to switch, Toshiba would have done it. Obviously giving up on HD-DVD was very expensive, so they would have paid off the studios if that was a feasible option.
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post #25 of 39
Quote:
Originally Posted by The Duke View Post
Yep to that.... lets whip out the check book and buy some friends
Frankly I hate Sony, over priced and there quality sucks!
Philips FTW
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post #26 of 39
Quote:
Originally Posted by rx7speed View Post
figure since a lot of you might be blind I'll make it easy.
read the topic.
this is not about sony.
this is about toshiba.

this is not about blue ray.
this is about toshiba

this is not about your experience with sony.
this is about toshiba losing money.
+ Rep

Seriously guys. This thread is about Toshiba. If you want a Sony hate thread then start your own in the "Rants and Raves" section.

I cannot believe Toshiba put that much of their company into HD-DVD . . . that is a big hit for them. Oh well, Risks are two way.

Big Risk = Big Potential for Profits = Big Potential for Loss

They knew what they were doing, they're big boys. Hopefully they bounce back, convert they're lines and sell some cheap A$$ BR players/movies
 
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post #27 of 39
Quote:
Originally Posted by DanNEBTD View Post

I cannot believe Toshiba put that much of their company into HD-DVD . . . that is a big hit for them. Oh well, Risks are two way.
THEY DIDN'T PUT THAT MUCH OF THEIR COMPANY INTO HD-DVD.

I've now made TWO posts explaining the corporate taxation aspect of this, and everyone save for one person has completely ignored them and continues to post "ZOOOMMMGGGGG!!!111!!!!!1!1!! TOshiba Is DOomed!"

Read the whole thread before posting. Especially one that's this short.
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post #28 of 39
Repost in bold for those unwilling to scroll up:

Post #1:

Quote:
Indeed.

Also, these numbers mean very little. While I'm sure Toshiba did take some substantial operating losses from the HD-DVD debacle, most of these drops in profits are due to one-time write-down and losses taken by Toshiba to offset many of their gains. Next quarter should see a sharp upwards again.
Post #2

Quote:
They actually probably saw this as a good time to pull out all the stops and take every loss and write-down they could find. Their goal was probably to get as close as possible to a zero profit (If not even a tax loss) as possible.

They figured since their share price was going to take a hit anyway, why not exercise every tax loss they had saved up? Don't forget that tax losses are actually a good thing for companies (I mean companies would generally rather have gains), but if you are already doomed to a bad quarter, tax losses reduce the amount of taxes you pay even more.

My point: Because they've wiped these lingering losses and write-downs off the balance sheet in a time when they are already obviously having a bad quarter, next quarter should appear extra-profitable which should go a long way in partially restoring their share price.
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post #29 of 39
For those that don't understand the US tax system, let me explain a bit as to how this works.
Premise
Lets say you are a company. Lets say you sell $100 of computer ram per year that costs you $90 to manufacture. Let's also say you sell $100 of processors per year that cost you $90 to manufacture. How much is your normal profit? $20/year. Does that make sense?

In this scenario, assuming you have no debts, no loans, no assets (etc.. for simplicity), you would be taxed $20 profit in year 1. Get it? GOt it? Good.

The Toshiba problem

Now lets assume, with the same examples as above, that your memory loses out to Sony's "blu-memory" and all of the sudden, you can't sell it. It would SEEM to reason that your profits for income tax purposes would drop to $10/year because you lost half of your business.

in reality, this is far from the truth.

Moving Closer to reality

In economic reality (as stated above), you're profits are really only cut by 50% (or in Toshiba's real-world case, probably only about 10% as HD-DVD was a fractional portion of their portfolio).

However, now the companies that owed you $5 for your memory (which is now useless) that you've shipped them in the past can't pay you for it (because it's worthless). This $5 you were owed originally counted as an asset. All of hte sudden, this assets has disappeared. As a result, you get to count this $5, FOR TAX PURPOSES, [b] against your current $10/mo profit. Now imagine there are two of these $5 unpaid bills owed to you. If you have to "write-down" both of them, you've just sustained a $10 loss on paper to offset your $10 profit from your computer processors.

Conclusion

So even though economically you have only lost half of your profit and are economically earning $10 from your processor division, because of the immediate $10 write-downs your books will show that this year, year 2, you have earned ZERO profit.

Make sense?
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post #30 of 39
Was it necessary to triple post? You could have just edited your original post.
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