Toshiba announced today that its profit fell by 95% during the first quarter of
2008. While a drop in flash memory chip prices accounted for some of the lost profits, the majority of it was due to Toshiba shutting
down its HD DVD business.
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).
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