Stefan Mileschin

Toshiba shares skidded 17% ($2.5 Billion) to its daily limit Monday on the Tokyo Exchange after the company reported after market close Friday, that it was withdrawing its earnings guidance for the fiscal year ended March and cancelling a year-end dividend due as it expanded a previously announced investigation.

This is Toshiba Corp’s second probe into its own accounting in two years leaving analysts and investors in doubt as to just what the root problem is and its long term consequences on operations.

Toshiba said it is setting up a third-party committee for further investigation, and that it could not report its financial results for the year ended in March, normally announced around this time, until June or later.

SanDisk, Toshiba’s partner in NAND-Flash, announced on the 16th of April that the company was “postponing” their financial analyst day meeting. No future date was set by Sanjay Mehrotra CEO of SanDisk. SanDisk has missed their earnings estimates for the last three quarters and according to downgrades by market analysts appears to be suffering from poor execution on a number of fronts:

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