Toshiba: Fiscal 1Q16 Financial Results

Toshiba Corp. announces recently consolidated results for the second quarter of FY16 ending June 30, 2016.

Comprising memories and HDDs, the Storage & Electronic Devices Solutions division, at ¥395.4 billion ($1=¥110) and representing 29% of global sales, records lower sales as well as lower operating income.

Although the HDD business recorded higher revenue (¥103.3 billion, +17% Y/Y) even though the PC market is sluggish – but that is much better than Seagate and WD seeing HDD revenue declining -, the memory, the devices and others businesses saw decreasing sales.

HDD business recorded higher operating income and discrete and system LSIs saw improved operating income, memories recorded lower operating income.

The company didn’t reveal the number of HDDs shipped. According to Trendfocus, the Japanese HDD maker shipped 21.55 million units in 2Q16 for a quarterly growth of 18% representing a 22% worldwide market share.

Slightly lower sales and lower operating income on memories are due to yen appreciation, but both net sales and operating income were better than expectations due to slowing of price decline on high demand in 2Q16.

Storage & Electronic Devices Solutions Quarterly Trend
in Operating Income (Loss) Against FY2015/4Q
Improved by cease of price declines in memories and increased sales of HDDs
(in ¥ billion)

Storage & Electronic Devices Solutions
(in ¥ billion)

	1FQ15	1FQ16	Y/Y growth	2FQ16	Q/Q growth	FY15	FY16 forecast	Y/Y growth
Net sales	377.4	371.6	-2%	395.4	6%	1,575.9	1,430.0	-9%
Operating income (loss)	34.3	24.1	-30%	37.0	54%	(100)	32.0