Japanese companies recently released their Q1 quarterly financial results for the fiscal year ending June 20, with total revenue of 812.3 billion yen, down 3.5%, and operating profit of 7.8 billion yen, 11 times the same period last year, but a net loss of 140.2 billion days. Yuan, the net profit for the same period last year was 1.016 trillion yen.
In the last quarter, Toshiba's electronics and storage division revenue was 197 billion yen, down 13% year-on-year, operating profit was 1.2 billion yen, compared with 4.4 billion yen in the same period last year, mainly due to the decline in NAND flash memory. The reason is that in June, Toshiba’s five NAND flash fabs in Yokkaichi, Japan, suffered a power outage.
Although the power outage was only a short 13 minutes, the two factories were shut down for 5 days, and the other three factories were shut down for more than a month. At this earnings meeting, Toshiba confirmed that all the factories have resumed operations.
According to Toshiba, the power outage caused a loss of 34.4 billion yen, or about 2.3 billion yuan or 320 million. Before Toshiba, their flash memory partner Western Digital also said that the power outage accident caused a loss of 3.15 to 339 million US dollars, affecting the flash capacity up to 6EB, equivalent to 12 million 500GB SSD hard drive capacity.
Toshiba said that the losses caused by the blackouts in June will continue to affect the Q2 quarter's earnings performance.
Toshiba and Western Digital's flash memory factories in Japan accounted for about 40% of the capacity of both parties. The suspension of production for more than a month almost affected 5% of the global flash memory supply, resulting in a spot price of 128Gb flash memory in July increased by about 2%, but with Toshiba and Western Digital The factory is back to operation, and the oversupply situation in the flash memory market should continue, and there is no possibility of long-term price increases.