Will Toshiba's Profit Drop Hurt HD DVD?

[BBlue]

News Analysis
Will Toshiba's Profit Drop Hurt HD DVD?
The company says profits fell 25 percent.
By Swanni

Washington, D.C. (January 29, 2008) -- Toshiba today said its operating profit fell 25 percent in the third quarter due largely to falling prices of flash memory chips.

However, the decline could put more pressure on the company to abandon its stake in the sagging HD DVD high-def disc format.

HD DVD is competing with the Sony-backed Blu-ray format for the new high-def disc audience. However, since Warner Bros. endorsed Blu-ray this month, HD DVD player and disc sales have badly trailed its rival.

There are now only two major studios -- Universal and Paramount -- releasing films in the HD DVD format, compared to five for Blu-ray.

Toshiba's stock has fallen 11.5 percent since the Warner endorsement, according to Reuters.

The stock drop -- combined with overall company losses -- could force Toshiba's top executives to revisit its investment in HD DVD.

The company this month announced a sharp cut in HD DVD player prices and said it will air a HD DVD commercial during this Sunday's Super Bowl.

http://www.tvpredictions.com/toshiba012908.htm

[w_tanoto]

don't you think it's the opposite.... HD DVD hurts "tosh sheep baa" 's profit

3000 posts

[Sylin]

You know, Toshiba is on dangerous ground with their shareholders. Ever since last spring's announcement that they would not meet their projected HD-DVD player sales by a whopping 60 percent, their stock has been shaky. And since the Warner announcement, it's been downright abysmal.

One of my best friends works for Toshiba, and I can tell you the heat is on from the shareholders to stop the hemorrhaging. Toshiba needs to get back to its strengths by shoveling money into their laptop and copier divisions (formerly their two best-known products) to stay competitive, and stop with this HD-DVD nonsense.

I'm glad I sold my Tosh stock a few years ago. Although now might be a good time to buy since it's low!

[JimPullan]

My sentiments exactly . . . .

The reality check will be next week when the shareholders receive the P&L Quarterly Report and the sales forcast for the next 9 months. I've got the feeling several heads will roll at the Board of Director's meeting following the quarterly report. No more denial after the report is public, then the value of share deminishes, and dividends shrink. Not a very good position to be in, if your an executive of Toshiba. I predict this will not be allowed to go even another quarter, especially at 85%/15% . [Jim]

Originally Posted by ikcizokm

You know, Toshiba is on dangerous ground with their shareholders. Ever since last spring's announcement that they would not meet their projected HD-DVD player sales by a whopping 60 percent, their stock has been shaky. And since the Warner announcement, it's been downright abysmal.

One of my best friends works for Toshiba, and I can tell you the heat is on from the shareholders to stop the hemorrhaging. Toshiba needs to get back to its strengths by shoveling money into their laptop and copier divisions (formerly their two best-known products) to stay competitive, and stop with this HD-DVD nonsense.

I'm glad I sold my Tosh stock a few years ago. Although now might be a good time to buy since it's low!

[monkyman]

I would think HD-DVD is part of the reason they went down 25%

[sj001]

Originally Posted by JimPullan

My sentiments exactly . . . .

The reality check will be next week when the shareholders receive the P&L Quarterly Report and the sales forcast for the next 9 months. I've got the feeling several heads will roll at the Board of Director's meeting following the quarterly report. No more denial after the report is public, then the value of share deminishes, and dividends shrink. Not a very good position to be in, if your an executive of Toshiba. I predict this will not be allowed to go even another quarter, especially at 85%/15% . [Jim]

Heads are gonna roll, I can't wait! This BS has gone on too long...

[JimPullan]

Toshiba's quarterly report shows a 25% drop in fourth quarter profits, and that will equate to deminishing value of their stock offerings and dividends to share holders. Now we simply wait for the share holders and Board of Directors to put an end to this format war and get back to profitable ventures. Spending 2.7 million dollars for a 30 second ad during the Super Bowl for the dying HD DVD format is not a very good manuever at this juncture, and if I were on the Board of Directors, I'd put an end to this nonsense . . . . 'right now!' . [Jim]

[w_tanoto]

Originally Posted by JimPullan

Toshiba's quarterly report shows a 25% drop in fourth quarter profits, and that will equate to deminishing value of their stock offerings and dividends to share holders. Now we simply wait for the share holders and Board of Directors to put an end to this format war and get back to profitable ventures. Spending 2.7 million dollars for a 30 second ad during the Super Bowl for the dying HD DVD format is not a very good manuever at this juncture, and if I were on the Board of Directors, I'd put an end to this nonsense . . . . 'right now!' . [Jim]

majority of stockholder probably already sold toshiba's share already. People might think HD DVD is not significant in toshibas as a whole, but it dropped the profit already (and its visible, as you said 25% drop, and they are not supid. If I were a shareholder, I would already sell it at the end of 2007 before warner's switch.