We received a letter from Scott Maccabe, president & CEO Toshiba America Business Solutions (TABS), on Tuesday, April 12. It represents the company’s (Toshiba TTEC’s) opinions in response to the recently reported poor financial showing of its parent company Toshiba.
Toshiba’s situation was exacerbated by the Fukushima radiation disaster caused by the 2011 earthquake and Tsunami, and then compounded by the write off which led to a $6.9 billion loss.
Scott takes the position that all is well at TABS and the negative financial news coming out of Japan will not interrupt the normal flow of business emanating out of Irvine, CA. It is hard to find fault with such a well laid out scenario of business as usual.
However, as analysts we must point out that Toshiba TTEC is a $4.8 billion entity and profitable. As an independent company does this make them more likely to be acquired? When you pose a question such as that you must ask, who would be the acquirer? Frankly, I am hard pressed to come up with a likely suitor in Japan.
As evidenced by Sharp being acquired by Hon Hai, the interested party could be Chinese or a country located in the Pacific Rim. To our way of thinking that is not the worst thing that could happen from a dealer’s perspective.
We are in the process of conducting our 32nd Annual Dealer Survey and based on the early returns from Toshiba dealers, they are still very much in the game. Without question the comments regarding Toshiba’s status as the primary vendor for A3 MFP continue to be very positive. Based on early returns, and that could change, their level of dedication to Toshiba is running at 34%. Those numbers make Toshiba very competitive in the dealer channel.
TABS’ LEAD Conference 2017 is coming up on May 2-4 and we expect to learn more from Scott and his team. For now, it is business as usual, but from our perch, dealers are concerned. There is still too much uncertainty in a flat market such as MFPs.
Sharp went through a very difficult time and until they demonstrate some new product or evidence of a financial commitment from Hon Hai becomes reality that situation is still unclear. The Ricoh restructuring, followed by selling off its MFP placements in the U.S. leads to questions as to where that company is going. Lexmark must build confidence in its brand and that it will remain viable under the new ownership while Samsung is going away and will be replaced by HP.
Because of the uncertainty with those vendors we see an opportunity for a dominant player to enter the dealer game. HP with the Samsung A3 MFP product line is making a serious effort to take share away from someone. Xerox is also making a play for independent dealers to add to the success they have enjoyed from the acquisition of Global Imaging.
For now, read Scott Maccabe’s letter and if you are a Toshiba dealer and have questions make sure to attend LEAD 2017 and ask Scott directly. If you would rather have us ask the questions, let us know what your concerns are and we’ll try to get an answer. For Toshiba, their task now is to deliver a more robust offering that will enable their dedicated dealers to expand their business and have a banner year. If they can do that they will keep the proverbial wolf away from the door and satisfy many of their dealers.
Dear Valued Customers, Partners & Employees,
As you may know, Toshiba America Business Solutions, (TTEC). TTEC is a separate, publicly-traded company whose shares Toshiba Corporation.
TABS and TTEC have just concluded a very successful FY16 with str 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 nuclea 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 requirements. Together with the filing, Toshiba issued a statement listing a number of potential liabilities related to the nuclear business and the consequences of
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 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 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
We are firmly committed to remaining a leading provider of multifunction printers, managed document solutions and digital signage as well as continuing our award
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 cu partners and employees.
Thank you for your continued support of Toshiba America Business Solutions, Inc.
Scott Maccabe President and CEO
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