Toshiba Australia pre-tax profit sees green again for FY19

Profit pre-tax has come in at AU$666,000, an improvement on the pre-tax loss of nearly AU$2 million during FY18.
Written by Aimee Chanthadavong, Contributor

Toshiba Australia has returned to profit pre-tax, reporting a modest sum of AU$666,000 for the financial year ending 31 March 2019, an improvement on the pre-tax loss of nearly AU$2 million reported last financial year. 

Despite the pre-tax profit, the company reported a loss to AU$2 million, due to income tax wiping out $2.8 million, which was still much lower than last year's loss of AU$3.6 million.

Meanwhile, total revenue from continuing operations came in at AU$135 million, which was mostly on par with the results reported last financial year. 

Revenue from contracts with customers made up a majority share of the company's total revenue, coming in at AU$129 million. Of that, AU$68 million was sales of goods, and AU$60.6 million was from rendering of services.  

During the period, Toshiba Australia also had AU$1.8 million of sundry items that accounted for a significant portion of its total income tax expense.

Read also: CES 2019: Toshiba introduces 1TB M.2 2230 PCIe SSD for embedded and OEM designs (TechRepublic)  

At the same time, Toshiba Australia experienced a dramatic drop in its purchasing of management services from ultimate parent entity to AU$300,000, from just over AU$1.2 million reported last financial year. 

The report also highlighted that the Australian arm of the Japanese conglomerate had 384 employees during FY19. Employee benefits excluding superannuation remained steady from last financial year at AU$33 million. 

In June, Toshiba was caught up in a federal court case in the United States, alongside Canon, for allegedly violating US antitrust laws. Both agreed to pay a $5 million fine to settle federal charges that claimed Toshiba and Canon violated the Hart-Scott-Rodino Act (HSR Act) during Canon's acquisition of Toshiba Medical Systems (TMSC).

The acquisition was agreed in 2016 for $6.1 billion. At the time, Canon said that purchasing the medical systems would help Canon "embrace the challenge of new growth through a grand strategic transformation."

See also: Dynabook returns to business PC market with three new models (TechRepublic)

But that's not the only part of Toshiba that has been sold off. Last year, Toshiba's PC business was sold to Sharp, in a deal worth $36 million. Following this, Sharp rebranded Toshiba's former PC business to Dynabook, which would still focus on business laptops, smart glasses, and internet of things tools.

Instead, the Japanese company has been focused on boosting its enterprise offering with new hard disks and getting in on the artificial intelligence game.

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