Toshiba this morning met a deadline to report its long-delayed financial results, saying it lost around US$8.8 billion (RM37.74 billion) in the last fiscal year over its hard-hit USA nuclear unit Westinghouse Electric.
PriceWaterhouseCoopers Aarata LLC (PwC) gave a "qualified opinion" on Toshiba´s results for the year ended March as well as for April-June, according to a filing.
The company said it had a net loss of 965.7 billion yen ($8.8 billion) for the fiscal year ended March 31 but said it would swing back to profitability in the current fiscal year. It will face automatic delisting from the TSE unless it eliminates its negative net worth by next March.
"It's still hard to say that Toshiba has taken a huge step forward", said Masahiko Ishino, an analyst at Tokai Tokyo Research Center.
But with a week left until the extended earnings deadline, the auditor still refused to approve the three-quarter figures, forcing Toshiba to delay the release of its earnings again.
Toshiba is in desperate need of covering its losses from its USA nuclear business.
IMI plc (LON:IMI) has analysts on the Bullish side this week
It is positive, as 85 investors sold T shares while 621 reduced holdings. 4 funds opened positions while 8 raised stakes. Maltese Capital Management Llc decreased Guaranty Bancorp Del (GBNK) stake by 13.17% reported in 2016Q4 SEC filing.
While agreeing generally with the financial results of Toshiba, the sign off from PwC did come with a caveat.
The auditor's sign-off reduces the immediate threat of Toshiba being delisted from the Tokyo Stock Exchange. The auditors have already provided their opinion about the dark future of the organization and said that the delisting got delayed due to PwC signed-off.
That has unnerved Toshiba's preferred bidder group, a consortium including Japanese government-backed funds, private equity firm Bain Capital LP and South Korean chip maker SK Hynix Inc.
For Toshiba, which was downgraded to the second section of the Tokyo bourse this month, a loss of its status as a listed company would further thwart its ability to increase money, particularly for the investment-intensive chip business that it is trying to sell.
But talks have stalled, causing Toshiba to miss a self-imposed deadline around the end of June to seal a deal after SK Hynix started demanding voting rights instead of providing loans. It was good news for a company confronted with delisting fears and legal battles with Western Digital. The sale of Toshiba Medical Systems to Canon past year took nine months to clear antitrust screening despite the lack of direct competition between the companies involved.