Letter from Scott Maccabe of Toshiba America Business Solutions
President and CEO Addresses Parent Company's Financial Results
Dear Valued Customers, Partners & Employees,
As you may know, Toshiba America Business Solutions, Inc. (TABS) is a majority owned by Toshiba Tec Corporation (TTEC). TTEC is a separate, publicly-traded company whose shares are majority owned (approximately 50.2%) by Toshiba Corporation.
TABS and TTEC have just concluded a very successful FY16 with strong results across both the printing and retail business 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 condition.
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.
Thank you for your continued support of Toshiba America Business Solutions, Inc.
President and CEO