Update from Toshiba
Most of us have read in the news recently about Toshiba and their Westinghouse group. Today Photizo received an update in a letter from Scott Maccabe, President & CEO Toshiba America Business Solutions / President & CEO Toshiba Global Commerce Solutions. Toshiba America Business Solutions (TABS) is majority-owned by Toshiba Tec Corporation (TTEC) who themselves is majority owned (50.2%) by Toshiba Corporation.
According to Mr. Maccabe, TTEC, has just completed a successful fiscal 2016. In looking at their 2016 Annual report (covering April 1, 2016-March 31, 2017), it looks like although 2016 printer/MFP revenue increased from 2015, the TTEC business loss was much higher than the previous 5 years at <$918M>.
On April 10, 2017, Toshiba Corporation announced consolidated financial results for the 3rd quarter of fiscal year 2016. Due primarily to losses in the overseas nuclear business (Westinghouse Electric Company), Toshiba announced a Q3 loss of $6.9 billion which was in line with expectations set by Toshiba previously. Therefore, Toshiba issued its unaudited Q3 financial results in order to comply with the Tokyo Stock exchange. Along with it’s filing, Toshiba issued a statement identifying a number of potential liabilities related to the nuclear business and the consequences to its current financial condition.
The statement went on to outline multiple alternatives to improve Toshiba’s financial situation including the sale of some or all of its memory business and potential IPO for its Landis+Gyr subsidiary. Considering the very strong and publically identified market value for these companies, Toshiba believes that it has a solid plan to secure the necessary funds to achieve long-term financial stability.
As part of the filing, Toshiba stated there are material events and conditions that raise substantial doubt about Toshiba’s ability to continue as a going concern which has been the source of headlines causing concern amount Toshiba stakeholders. We have been told that Toshiba Corporation’s President, Mr. Tsunakawa, has assured employees that his disclosure of a worst-case scenario is a statutory requirement.
According to Scott Maccabe, TABS, while a member of the Toshiba group of companies, is both financially and operationally independent from Toshiba Corporation so the issue surrounding Toshiba does not directly affect TTEC’s ability to service their clients or affect R&D investments. He went on to say that that TTEC management team and Board of Directors are committed to whatever actions necessary to insure the protection and sustainability of TTEC’s business and the well being of their customers, business partners, and employees.