TABS CEO Reassures Clients in Wake of Toshiba Corp. Difficulties
This week – in light of Toshiba Corporation of Japan’s financial difficulties, which include a loss for its most recent quarter and concerns that it may not be able to survive (see Toshiba Reports $5.9 Billion Loss, Warns of Ability to Continue as Going Concern) – Toshiba America Business Solutions (TABS) CEO and President Scott Maccabe wrote to clients and customers reassuring them that Toshiba Corporation’s troubles don’t necessarily affect TABS:
“As you may know, Toshiba America Business Solutions, Inc. (TABS) is majority owned by Toshiba Tec traded company whose shares are majority owned (approximately 50.2%) by
TABS and TTEC have just concluded a very successful FY16 with strong results across both the printing and retail segments worldwide.
Meanwhile on April 10, 2017, Toshiba Corporation announced consolidated financial results for the third quarter of fiscal year 2016. Due largely to losses in its overseas nuclear business, particularly Westinghouse Electric company, the company announced a third quarter loss of $6.9 billion. These results were in line with the previously communicated forecast.
The company issued its unaudited third quarter financial results in order to comply with Tokyo Stock Exchange requirements. Together with the filing, Toshiba issued a statement listing a number of potential liabilities related to the nuclear business and the consequences of its current financial situation.
As part of the filing, Toshiba stated that there are material events and conditions that raise substantial doubt about the company’s ability to continue as a going concern. While this comment has been the source of headlines and caused concern among our many stakeholders, Toshiba Corporation’s president, Mr Tsunakawa, has assured us that the disclosure of this worst case scenario is a statutory requirement.
The statement went on to outline multiple steps meant to improve Toshiba’s financials including the sale of some or all of its memory business and a potential Initial Public Offering (IPO) for its Landis + Gyr subsidiary. Considering the very strong and publicly identified market value of these companies, Toshiba believes that it has a solid plan to secure the necessary funds to achieve long-term financial stability.
Your business partner, Toshiba America Business Solutions, Inc. (TABS), while a member of the Toshiba Group of companies, is independent both financially and operationally from Toshiba Corporation. As such, the current issues surrounding Toshiba Corporation do not directly affect our ability to service our clients, invest in research and development, or operate our business in the world-class manner to which you are accustomed.
We are firmly committed to remaining a leading provider of multifunction printers, managed document solutions and digital signage as well as continuing our award-winning levels of customer service.
Furthermore, please be assured that TTEC management and its Board of Directors are committed to taking any and all actions needed to insure the protection and sustainability of our business and the well-being of our customers, business partners and employees.”
- April 2017: Toshiba Reports $5.9 Billion Loss, Warns of Ability to Continue as Going Concern
- March 2017: Toshiba Approves Sale of Chip Business; Foxconn May be Bidder
- March 2017: Troubled Toshiba Fails to Submit Audited Third-Quarter Earnings Report
- February 2017: Toshiba America Business Solutions Seeks to Reassure Customers, Partners Amid Toshiba Financial Difficulties
- February 2017: Toshiba Delays Financial Report, Chairman Steps Down Over Losses in Nuclear Business
- February 2017: Toshiba May be Considering Selling Toshiba Tec