Toshiba today announced a revision to its business forecast for FY2007, ending March 31, 2008, which includes lower sales figures and losses due to the discontinuation of the HD DVD business.

The new business forecast replaces the previous forecast announced on October 29, 2007.

Toshiba expects net sales to be lower than previously forecast, reflecting the discontinuation of the HD DVD business and the decline in sales prices of NAND flash memories.

While toshiba's PC business and Social Infrastructure segment are moving forward strongly, the Semiconductor business has seen a significant decrease in operating income due to a larger than anticipated declines in sales prices of NAND flash memories. Given this, the overall operating income is anticipated to see a decrease from the previous forecast. Income before income taxes and minority interest and net income are also expected to decrease from the previous forecast, primarily on costs incurred in the discontinuation of the HD DVD business.

Toshiba lowered its earnings forecast for this fiscal year on Wednesday on 45 billion yen ($460 million). Toshiba also said it would rack up a 65 billion yen ($666 million) operating loss in its HD DVD business.

The Japanese electronics maker lowered its group profit forecast for the fiscal year ending March 31 to 125 billion yen ($1.26 billion), down from the initial forecast for 180 billion yen profit. Toshiba had earned a 137 billion yen profit the previous fiscal year.

The Japanese company also lowered its sales projection for the fiscal year ending March 31 to 7.7 trillion yen ($78 billion) from the earlier 7.8 trillion yen.