HD DVD flop costs Toshiba $1.1 bil
Amount is more than double earlier projection
On Wednesday Toshiba also said that it has revised its net profit forecast for the year ending March 31 down by 30% to $1.25 billion, with its defeat in the next-generation DVD format war weighing heaviest.
Tougher than expected competition in the flash memory chip market also dragged down the profit estimate. Operating profit is projected to fall to $2.3 billion from $2.58 billion in 2006.
Despite these negative numbers, Toshiba expects revenue to rise to $77 billion, compared with $71.2 billion the previous fiscal year.
Toshiba abandoned the HD DVD biz in February after key ally Warner Bros. went over to the rival Blu-ray camp. The decision of the Wal-Mart chain to stock only Blu-ray players and discs in its stores was another major blow.
