After a yearly set back, Toshiba endured a quarterly loss as well. The firm’s revenue dragged down to its bottom in two and half years. While in past three years this is the first time that company is reporting a first quarter loss, according to Nikkei business daily reports.
The accounting irregularities related to the earnings reports of six years have greatly damaged the credibility of the firm in addition to profit margins. The firm delayed its fiscal 2014 report twice on an account of accounting irregularities and reported its fiscal earnings report after the delay of three to four months. Normally the firm’s fiscal year ends in March and it reports its earnings in May. Due to this scandal three top executives of the company also stepped down.
The firm posted a net loss of 12.3 billion yen ($102 million) for the three months ended June. Revenue was 1.35 trillion yen, the lowest figure since the quarter through December of 2012.
Toshiba’s Chip business, electronic devices and components segments, has proven the most lucrative business for the firm in the year through March 2015. These segments accounted for as much as 100 percent of operating income. On the other hand lifestyle division, including PCs, televisions and home appliances, costs roughly 110 billion yen in that year.
Toshiba hasn’t yet faced any fine regarding accounting irregularities. The investigation is still under process. But the firm has separately reserve 8.4 billion yen to pay for possible fines.
The company has apologized to investors and further said that it has put serious efforts to avoid further accounting irregularities
The firm’s extraordinary meeting has scheduled on Sept. 30. The firm said that it will give its full year guidance for the current year in October.
