Toshiba has officially announced a revision to its business forecast for the 2007 financial year, ending 31 March 2008.

The Nikkei business daily had reported that Toshiba was likely to book a 100 billion yen ($986/£485 million) loss in its high-definition format HD DVD business and post a full-year operating profit of around 250 billion yen, falling short of its outlook.

It seems things are not quite as a dire as predicted - the HD DVD side of things cost Toshiba 65 billion yen ($666m/£330 million) with group profits predicted at 125 billion yen, down about 12 billion yen from the previous year.

Toshiba states: "Net sales are expected to be lower than previously forecast, reflecting the discontinuation of the HD DVD business and the declines in sales prices of NAND flash memories".

"Income before income taxes and minority interest and net income are also expected to decrease from the previous forecast, primarily on costs in the discontinuation of the HD DVD business."