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Shibaura 1-chome, 1 Chome-13 Shibaura, Minato City, Tokyo, Japan
24. Toshiba $3.97 Billion ($61.5B total)
KEY EXECUTIVES: Hisao Tanaka, President & CEO, Toshiba Corp. Satoshi Tsunakawa, President & CEO, Toshiba Medical Systems Corp. Donald Fowler, President & CEO, Toshiba America Medical Systems Calum G. Cunningham, VP, Business Operations, Toshiba America Medical Systems Ted Nemetz, VP, Technology Services Business, Toshiba America Medical Systems Scott Goodwin, VP of Sales, Toshiba America Medical Systems Stuart Clarkson, director, MR Business Unit, Toshiba
NO. OF EMPLOYEES: 210,000 (total)
Toshiba Medical Systems Corp. and its U.S. subsidiary Toshiba America Medical Systems (in Tustin, Calif.) make medical diagnostic imaging systems, such as CT, X-ray and vascular, ultrasound, nuclear medicine and MRI systems, as well as information systems for medical facilities. A division of Japanese electronics behemoth Toshiba, the medical systems group is no newcomer to the medtech space. It has been in business for more than 80 years. In fact, the company—before the healthcare division was formed—was the first in Japan to begin research on X-ray tubes in 1914. The company also developed one of the world’s first X-ray machines in 1932 to help physicians manage a tuberculosis outbreak in Japan. A lot has happened in the last 100 years. Toshiba’s medical group claims its mission is to improve lives globally with cutting-edge imaging technology and solutions. Well, during fiscal 2012 (ended March 31, 2013), it seemed as if the company’s mission seemed to be stockpiling approvals and clearances from the U.S. Food and Drug Administration (FDA).
The company received FDA 510(k) clearance for the new Vantage Titan 1.5T series, which features the 8-, 16- and 32-channel magnetic resonance (MR) systems. The series offers a scalable solution with a full upgrade path from the 8-channel to the 32-channel system. In addition to these upgrades, the entire Titan 1.5T MR line was enhanced with a new modern, sleek exterior, including new covers and soft, patient-soothing lighting around the bore, according to the company. The company also claims the Titan 8-channel is a “workhorse” for most clinical applications.
In August last year, Toshiba received FDA clearance for its high-density 16-element flexible coil system, developed in partnership with Pewaukee, Wis.-based Neocoil, a medical imaging device company that specializes in magnetic resonance imaging radiofrequency (RF) coils. The new coil system makes it easier for clinicians to complete high-quality exams and improve diagnostic efficiency, the company claims.
“The 16-element MR coils feature a flexible design, enabling clinicians to use the coils for various exam types,” said Steve Nichols, chief operating officer, NeoCoil. “The lightweight coils come in two sizes and wrap around a patient’s anatomy, accommodating patients of various sizes.”
Available for the Vantage Titan 1.5T, the 16-element flexible coils conform more closely to the anatomy, greatly improving signal-to-noise ratio. The coils are available in medium and large sizes and ideally are suited for general orthopedic and body imaging of large and small patients. Where standard coils are not optimal, the flexible coils can be used for general-purpose as well as head, neck and spine imaging. Large patients are not forced into the hard plastic of traditional rigid coils. Adding to its ultrasound product line, following FDA clearance, the company rolled out the Aplio 500 and 300 ultrasound systems. The Aplio 500 and Aplio 300 combine advanced visualization capabilities, workflow automation tools and improved ergonomics for improved departmental efficiency and greater patient access, according to the company.
The Aplio 500 offers advanced visualization features, including Fly Thru and Smart Fusion. Fly Thru, which the company says is an industry first, uses four-dimensional ultrasound to “fly through” interiors of fluid-filled ducts and vessels for better exploration of lesions and masses and to assist in planning interventional procedures. Smart Fusion combines the best in imaging and synchronizes computed tomography (CT) or magnetic resonance with ultrasound, helping to locate hard-to-find lesions and aiding in ultrasound-guided biopsies. The Aplio 300 offers exceptional image quality in a smaller, more versatile platform designed to be a clinical workhorse for all routine ultrasound exams.
“Toshiba’s new ultrasound systems are designed to meet the clinical needs of hospitals everywhere,” said Tomohiro Hasegawa, director, Ultrasound Business Unit, Toshiba. “Aplio 500 has advanced features to help improve ultrasound diagnoses, while the Aplio 300 is a versatile system designed for many routine exams.”
Toshiba received FDA clearance of the Aquilion Prime 80 series CT system, the latest addition to the Aquilion CT product line. Producing higher-quality clinical images and reducing radiation exposure, the system can generate 80 unique slices per rotation, according to the company. The system is designed with in-field upgradeability to 160 slices, giving healthcare facilities the ability to perform a wide variety of advanced clinical procedures today and to grow as clinical needs expand. The combination of a 660-pound patient-weight-capacity couch with a large gantry bore makes the Aquilion Prime 80 series a good system for routine clinical scanning or bariatric patient studies, the company claims.
“The PRIME 80 series is an example of how Toshiba constantly develops new technologies to improve safety in imaging and patient care,” said Tim Nicholson, senior manager, Market Development, CT Business Unit, Toshiba. “Giving hospitals the opportunity to conduct advanced exams in mere seconds and grow clinical abilities based on patient needs results in improved patient care and overall departmental efficiency.”
Also in fiscal 2012, the FDA cleared the Adaptive Iterative Dose Reduction (AIDR) 3D (AIDR 3D), the company’s newest dose-reduction technology. AIDR 3D is Toshiba’s third-generation iterative dose reconstruction software, which has been enhanced to reduce radiation dose compared to conventional scanning. It is a sophisticated algorithm designed to work in both the raw data and image data space, reducing noise while attempting to maintain image quality. AIDR 3D can be integrated with SureExposure 3D, a software that calculates the minimum radiation exposure required for every exam. It adjusts the dose for each patient based on a pre-set, targeted level of image quality.
On the management side, Toshiba America Medical Systems named Satrajit Misra senior director of the CT Business Unit, where he will implement tactical and strategic marketing plans for Toshiba’s CT product line. Prior to joining Toshiba, Misra served as senior director and head of product marketing for Nuclear Medicine at Philips Healthcare and was a medical systems director of business management at Siemens. Toshiba America Medical Systems also named Calum Cunningham as vice president of business operations. Cunningham will oversee a range of activities, from national quotes and bids, to market data submissions and reporting. He also is responsible for sales logistics management, including warehouse logistics, customer site planning, installation support, clinical applications and service training. Cunningham joined Toshiba in 2009 as senior vice president and general manager of Toshiba Medical Visualization Systems. Upon Toshiba’s merger with Minnetonka, Minn.-based Vital Images Inc. in 2011, he was named executive vice president of corporate and business development at Vital Images.
By the numbers, Toshiba’s healthcare unit had a good year, increasing sales 6.6 percent (in yen) to approximately $3.97 billion. The division reported operating income of approximately $251.4 million, up 37.8 percent.
18. Toshiba $4.6 Billion ($74.4B total)
KEY EXECUTIVES: Atsutoshi Nishida, Chairman & Director, Toshiba Corp. Satoshi Tsunakawa, President & CEO, Toshiba Medical Systems Corp. Toshiya Miyaguchi, President, Toshiba America Medical Systems Kevin Abbott, Sr. VP, CFO & Treasurer, Toshiba America Medical Systems Donald Fowler, Sr. VP & General Manager, Toshiba America Medical Systems Doug Ryan, VP, Marketing & Strategic Development, Toshiba America Medical Systems Scott Goodwin, VP of Sales, Toshiba America Medical Systems
At 137 years old, Toshiba Corp. is at the top of this list as far as venerable multinational conglomerates go. The healthcare arm of the global electronics giant Toshiba—Toshiba Medical Systems Corp.—manufacturers diagnostic imaging (cardiovascular X-rays, computed tomography imaging, magnetic resonance imaging, and ultrasound). Much of the company’s business comes out of its North American base, Toshiba America Medical Systems, in Tustin, Calif. The medical division barely is mentioned in detail in the company’s annual financial reports, but it’s certainly doing a robust business.
Overall, Toshiba Corp. net sales for the 2011 fiscal year (ended March 31, 2012) were $74.4 billion, a decrease of approximately $3.6 billion compared to the previous year’s sales. The company cited appreciation of the yen, the Japan earthquake and floods in Thailand as major factors impacting financial performance for the year. Operating income was $2.5 billion, a decrease of roughly $400 million. Net income for the year was $1.9 billion, a decrease of $523 million.
The company reported that its medical sales division inked “steady increases” in business for FY11. The company had $4.4 billion yen in sales, an increase of 23 percent (in yen).
Toshiba America Medical Systems made a number of key strategic hires throughout the fiscal year.
At the end of the month, Donald L. Fowler was brought on board as general manager and senior vice president. In this role, Fowler is responsible for driving the growth of Toshiba’s multi-modality business in the United States. He oversees sales, marketing, service, finance, human resources and information technology functions.
“Mr. Fowler has had an impressive career in diagnostic imaging,” said Toshiya Miyaguchi, president, TAMS. “His multi-functional, multi-modality experience, as well as his history leading a $2.5 billion dollar business, make him a great fit for this position.”
Prior to Toshiba, Fowler held the position of vice president of MR Business Unit at Siemens Medical Solutions USA.
In June, the company announced that Guy Poloni, Ph.D., had been named product manager for the Vantage Titan 3T MR system. In his new position, Poloni develops and implements product marketing strategies and programs for the system, and is helping to launch the product, which at the time of his hiring was pending 510(k) clearance. Prior to joining Toshiba, Poloni worked as Sequence Development Unit Director at Buffalo Neuroimaging Center at The Jacobs Neurological Institute in Buffalo, N.Y. Poloni has received numerous research fellowships and has co-authored multiple articles for medical journals, such as The Neurologist and European Journal of Paediatric Neurology. He holds a doctorate and a master’s degree in theoretical physics and a bachelor’s degree in physics from the University of Milan in Italy.
In August, Toshiba America Medical Systems named Scott Goodwin vice president of Sales. He oversees CT, MR, X-ray/vascular and ultrasound sales field operations, sales and customer training and applications. Goodwin joined Toshiba after two years with Philips Healthcare as general manager, Nuclear Medicine Business. Prior to that, he worked for Siemens Medical Solutions as general manager, Western Zone Sales. During his nearly 20 years at Siemens, Goodwin held the positions of vice president, CT Business Management; national sales director, PET/CT systems; as well as several other sales-related positions.
What’s immediately notable about Toshiba Medical Systems is the firm’s steady stream of new product introductions. And FY11 was no different.
On April 14, 2011, Toshiba introduced upgrades across its ultrasound product line. The recently added features available on the Aplio XG, Aplio MX, Xario XG and Viamo systems include Auto IMT, 4-D imaging improvements and workflow protocol enhancements. Additional upgrades to the Viamo include ApliPure, TissuePure imaging and DICOM structured reporting. Auto-IMT can determine the thickness of the near and far arterial walls from three segments of the carotid artery at an optimal angle of incidence and two complementary planes, according to the company. Auto-IMT traces the two complementary planes automatically and calculates the distance between them in order to help with early detection and monitoring of cardiovascular disease. Auto-IMT uses the collected images following the American Society of Echocardiography’s consensus statement for the diagnosis.
During biopsies, 4-D imaging allows for more accurate guidance of the biopsy needle. Precise visualization of the needle path creates safer exams and reduces potential complications. Workflow enhancements include protocols that standardize image output and increase exam efficiency by reducing the number of tasks per exam, according to the company. Sonographers have the ability to add custom annotations and reshuffle images as well as being able to exit the protocol when additional images are required and re-enter at the same place to continue the protocol with just the click of a button.
Upgrades to the Viamo include ApliPure, TissuePure Imaging and DICOM structured reporting. The new upgrades enable clinicians to perform advanced exams with greater image definition and clinical accuracy without compromising on patient access, making it well-suited for high-end radiology, vascular, and OB/GYN exams and procedures at patients’ bedsides. A new 40-centimeter depth setting allows improved imaging of patients that traditionally have been difficult to image.
In August, the company rolled out the U.S. Food and Drug Administration (FDA)-cleared HDR-08A Imaging System that offers Toshiba’s Kalare R&F technology with a new user interface and more advanced image processing, increasing the dynamic range of fluoroscopy. With these new system features, according to the company, clinicians can obtain more information from the images, resulting in quicker, more accurate patient diagnoses.
In September, the company’s M-Power magnetic resonance (MR) imaging interface received FDA clearance. M-Power is a customizable MR system user interface designed to allow users to streamline and accelerate scanning processes and enhance diagnoses. M-Power is available for use on Toshiba’s Vantage Atlas, Vantage Titan 1.5 and Titan 3T MR systems.
November brought with it FDA clearance of the Aplio 300 ultrasound system.
“The Aplio 300 combines powerful visualization capabilities, workflow automation tools and better ergonomics for more accurate diagnoses and better patient throughput,” said Tomohiro Hasegawa, director, Ultrasound Business Unit, Toshiba. “The system meets a variety of needs, making it an essential ultrasound system for today’s healthcare environment.” The system is smaller and designed for high-volume ultrasound exams, including radiology, OB/GYN and cardiovascular.
Also introduced in November of fiscal 2011 was the Vantage Titan 1.5T MR Series.
The start of 2012 included FDA clearance of the Aquilion Prime CT system, the latest addition to the Aquilion CT product line and part of Toshiba’s “ONE Family” of CT scanners. The system can generate 160 unique “slices” per rotation, enhancing imaging. The Aquilion Prime was designed for healthcare facilities that need to perform a wide variety of advanced clinical examinations and produce high-quality clinical images with reduced radiation exposure.
“The combination of the 0.35-second gantry rotation speed and the state-of-the-art reconstruction technology allows many examinations to be performed and reconstructed in mere seconds, improving patient care and overall departmental efficiency,” said Joseph Cooper, director, CT Business Unit, Toshiba. “That, along with standard patient safety features … helps clinicians acquire quality images while attempting to minimize radiation dose as much as possible.”
Though clearly busy on the new-product front, Toshiba executives weren’t too busy to look for some inorganic growth.
In April 2011, the company purchased Minneapolis, Minn.-based Vital Images Inc. in an all cash deal for $273 million ($18.75 per share).
“After a decade-long successful partnership spanning more than 50 countries, [Terumo] is taking the partnership to the next level,” said Satoshi Tsunakawa, CEO of Toshiba Medical Systems Corp. “We have enormous respect for Vital’s products, pipeline and people, and look forward to working with their highly skilled team to enhance clinical value for patients throughout the world.”
Established in 1998, Vital Images makes of advanced visualization and analysis software for physicians and healthcare specialists. The company’s software enables the visualization and analysis of 2-D, 3-D and 4-D images of anatomy and physiological function using computed tomography and magnetic resonance scan data, offering medical specialists time-saving, Web-accessible tools for greater productivity.
15. Toshiba
$4.6 Billion ($77B total)
KEY EXECUTIVES:
Atsutoshi Nishida, Chairman & Director
Satoshi Tsunakawa, Toshiba Medical Systems Corp.
Toshiya Miyaguchi, President, Toshiba America Medical Systems
Kevin Abbott, Sr. VP, CFO & Treasurer, Toshiba AmericaMedical Systems
Donald Fowler, Sr. VP & General Manager, Toshiba America Medical Systems
Doug Ryan, VP, Marketing & Strategic Development, Toshiba America Medical Systems
NO. OF EMPLOYEES: 199,000 (total)
GLOBAL HEADQUARTERS: Tokyo, Japan
The healthcare arm of global electronics giant Toshiba—Toshiba Medical Systems Corp.—is a manufacturer ofdiagnostic imaging (cardiovascular X-rays, computed tomography imaging, magnetic resonance imaging, and ultrasound). Much of the company’s business comes out of its North American base, Toshiba America Medical Systems, in Tustin, Calif.
Toshiba Medical Systems emerged from a tough fiscal 2009 with increased sales in 2010. The company grew revenue by 12 percent (in yen) for fiscal 2010 (ended March 31 of this year) to approximately $4.6 billion. Net income also increased—27 percent (in yen)—to roughly $301.7 million. Company management cited improved economic conditions in the United States for the uptick in sales.
The year also brought a number of significant product launches.
During the fiscal year, Toshiba began offering the Aegis breast imaging workstation with its magnetic resonance imaging (MRI) products. The Aegis breast workstation, developed by Sentinelle Medical Inc. in Toronto, Canada, offers 4-D (3-D plus time) image processing, combining the speed and flexibility of a 3-D visualization workstation with dedicated breast MRI algorithms, including kinetic curves and color maps and customizable reports. The Aegis breast workstation is available on Toshiba’s Vantage Atlas and Vantage Titan MR systems.
In November, Toshiba America Medical Systems Inc. introduced the Radrex-i Standard, a digital radiographic (DR) system. Radrex-i allows facilities to stay competitive by replacing film or computed radiography cassette processing with a digital system to increase productivity and diagnostic accuracy. Radrex-i Standard was designed to improve workflow for radiology departments by offering simplified components, including ergonomic, user-friendly controls on the overhead X-ray tube. The Radrex-i Standard also includes a 500-pound table weight limit, a 300 kHU X-ray tube and an 80-kW generator, allowing hospitals to image a variety of patients quickly, according to the company.
Toshiba also announced upgrades across its ultrasound product line. The latest features available on the Aplio XG, Aplio MX, Xario XG, and Viamo systems include new transducers, 4-D imaging improvements and workflow protocol enhancements. Additional upgrades to the Viamo include ApliPure, TissuePure Imaging and DICOM structured reporting. Toshiba is improving 4-D image quality across its ultrasound line to enable clinicians to see all dimensions of the anatomy being imaged more clearly and accurately. During biopsies, 4-D imaging allows for more accurate guidance of the biopsy needle. Precise visualization of the needle path creates safer exams and reduces potential complications, according to the company. Toshiba also added three new transducers to improve the ability to conduct detailed ultrasound imaging exams, including one high-frequency curved array transducer and two intraoperative transducers. The new high-frequency tightly curved transducer, PVT-712BT, enables clinicians to view small details, especially important in exams of neonatal heads, pediatric abdomens and thyroids. These details come from the transducer’s ability to penetrate from the near to far field at very high frequencies. The new intraoperative transducer, PVT-745BTH, is designed for direct visualization of organs, particularly the liver, during surgery. The second new intraoperative transducer, PVT-745BTF, is tailored for imaging the vascular system. All transducer upgrades are available on the Aplio XG, Aplio MX and Xario XG ultrasound systems. Toshiba also upgraded the Viamo ultrasound including ApliPure, TissuePure Imaging and DICOM structured reporting. The new upgrades on the Viamo enable clinicians to perform advanced exams with greater image definition and clinical accuracy without compromising on patient access, making it appropriate for high-end radiology, vascular and OB/GYN exams and procedures at patients’ bedsides.
In February this year, Toshiba received U.S. Food and Drug Administration clearance for Auto-IMT, which can determine the thickness of the near and far arterial walls from three segments of the carotid artery. Auto-IMT traces the two complementary planes automatically and calculates the distance between them. Toshiba worked with Midwest Ultrasound, a division of The Christ Hospital in Cincinnati, Ohio, to develop the software tool. Midwest Ultrasound is a nationally recognized leader in providing quality cardiac and vascular ultrasound services, and maintains a diverse client mix, from small rural and community hospitals to major urban academic centers and large physician practices in southwest Ohio.
While not necessarily a new product release, to help patients work with physicians to learn—and feel more comfortable—about imaging procedures, Toshiba created the website myimagingexam.com. The site provides educational tools for patients to download and use with their physician before undergoing a medical imaging exam to better understand the imaging process and manage their own health. In addition to tools, the site also includes educational information about women’s imaging, pediatric imaging, patient comfort and CT radiation dose.
Fiscal 2010 also was a year of management transition for Toshiba Medical Systems and its American arm; a number of key postings were announced.
In June 2010, Toshiba Medical Systems Corp. in Japan appointed Satoshi Tsunakawa as president and CEO. Tsunakawa was a senior vice president of the company, and, succeeds Kenichi Komatsu, Ph.D., who became an adviser to Toshiba Medical Systems’ board. He has been with Toshiba since 1979.
Also in June last year, Toshiba America Medical Systems Inc. named Tomo Hasegawa as director of the Ultrasound business unit. Hasegawa is responsible for implementing tactical and strategic marketing plans to drive growth and profitability. He also will interface with Toshiba’s global business unit at Toshiba Medical Systems Corporation in Japan to communicate the needs and requirements of the U.S. market. Hasegawa has an executive MBA with honors from the University of Washington in Seattle, Wash., and a BS/MS in Electrical Engineering from Massachusetts Institute of Technology in Cambridge, Mass.
In October 2010, Joseph Cooper was named director of the computed tomography business unit of Toshiba America Medical Systems Inc. Cooper has more than 15 years of experience in the medical imaging industry. Prior to his new role with Toshiba, Cooper spent 10 years at Siemens, where he was responsible for managing and developing the CT market throughout Southern California. Cooper has been working at Toshiba for the past five years, most recently as senior manager of the CT business unit in charge of strategic development.
Just after the end of the 2010 fiscal year, Stephen Bumb was named director of the X-ray Vascular Business Unit of Toshiba America Medical Systems in April. Prior to joining Toshiba, Bumb was the marketing director for Edwards Lifesciences Critical Care in Irvine, Calif. In his time there, he was involved in the development and operation of a nationwide clinician education program, re-engineering of the company’s sales training program and development of a new sales channel. He has also held executive positions at Imagyn Medical Technologies and Vascular Control Systems.
Also in April, Toshiba America Medical Systems Inc. named Donald L. Fowler as general manager and senior vice president to oversee sales, marketing, service, finance, human resources and information technology functions. Most recently, Fowler held the position of vice president of the magnetic resonance business unit of Siemens Medical Solutions.
“20. Toshiba
$3.7 Billion ($69B total)
KEY EXECUTIVES: Atsutoshi Nishida, Chairman and Director Toshiya Miyaguchi, President, Toshiba America Medical Systems Lawrence Dentice, General Manager and Sr. VP, Toshiba America Medical Systems Kevin Abbott, Sr. VP, CFO and Treasurer, Toshiba America Medical Systems Doug Ryan, Vice President, Marketing and Strategic Development Aaron Hudy, VP, Sales
NO. OF EMPLOYEES: 198,000 (total)
Global electronics company Toshiba wasn’t immune to the global financial forces at work in 2009. The company—which manufacturers everything from laptops and lighting to 21st century imaging equipment, large-screen televisions and industrial motors—took roughly a 4 percent hit to revenue (in yen) compared with its fiscal 2008 performance. Sales for fiscal 2009 (ended March 31 this year) were approximately $69 billion for the company overall.
The company’s medical division, headquartered in Tustin, Calif., experienced a little of the struggle of its parent corporation. The maker of diagnostic medical imaging systems reported $3.7 billion in sales, slightly down from last year, a result of the world economy and unfavorable currency exchange, officials said. Net income was $220 million, down slightly from $244 million in 2008. According to management, the medical division “continues to maintain high profitability,” and already predicts a more robust fiscal 2010 as economic conditions in the United States begin to improve slowly.
To keep ahead of the competition curve in a tough market, innovation seems to be the name of the game for Toshiba, with a constant stream of new product rollouts throughout the year.
Among the new releases were two new versions of its Aquilion multi-detector CT system—the Aquilion Premium and CX editions. The Aquilion Premium rounds out the company’s CT portfolio to include a product with 160-detector rows and coverage up to 8 cm in a single rotation. This system also is field-upgradeable to an Aquilion ONE. The Aquilion CX is Toshiba’s next generation 64-detector row CT system featuring faster reconstruction standards with up to 28 images per second, Toshiba’s Quantum Advantage detector technology and a patient couch that can accommodate up to 660 lbs. The CX is designed for advanced, emergency and routine radiology exams and allows customers to image patients ranging from pediatric to bariatric.
For the vascular sector, the company released a low-contrast imaging (LCI) version of its Infinix-i systems with mid (12” x 12”) and large (12” x 16”) flat-panel detectors.
“Toshiba’s low-contrast imaging enables better visualization of soft tissue to improve the imaging and treatment of patients,” said Robert Micer, director, X-ray Vascular Business Unit. “Using low-contrast imaging in the angio suite improves patient safety and diagnostic confidence by offering CT-like images of soft tissue, including brain tissue, cerebral ventricles and hepatic visualization, without requiring additional exams.” Toshiba is billing the device as a way to help lower healthcare costs with a single system flexible enough to treat numerous diseases and handle multiple procedures.
In September, the company rolled out its compact Aplio MX ultrasound, which was designed to be small, but powerful and less expensive for hospitals. The Aplio MX is approximately 30 percent lighter than traditional cart-based systems and improves ergonomics with its 19-inch flexible monitor and customizable key console, according to Tohsiba. It also can include the company’s iAssist technology, which pre-registers frequently used protocols into the system, saving time during exams and increasing productivity for facilities performing multiple exams daily.
Among other features, the system includes four-dimensional imaging to produce high-resolution renderings and arbitrary volume cuts in real-time or offline allowing virtual reconstruction in formats similar to CT and MRI.”
$3.9 Billion ($76.6B total)
“Toshiba adopted its corporate brand tagline to clearly demonstrate the value that we promise to our customers and society, and to emphasize that through continuous innovation in all areas of its business activities, Toshiba is determined to attain sustained growth with high profit,” executives said in the company’s 2007 annual report.
The effects of Toshiba’s rebranded tagline on the general public have been difficult to gauge. Its influence on the company’s bottom line, however, has been easier to quantify. After introducing the rebranded tagline during fiscal 2006, net sales at the Japanese electronics giant rose considerably, going from $60.3 billion in fiscal 2006 to $76.6 billion in fiscal 2007. Net sales in the company’s Medical Systems business jumped 26 percent during that same period, going from $3.1 billion in fiscal 2006 to $3.9 billion in fiscal 2007, ended March 31, 2008. Operating income for the Medical Systems business increased 23.7 percent in fiscal 2007 to $305,470.
Both net sales and operating income in Toshiba’s Medical Systems business fell in fiscal 2008, as deteriorating economic conditions slowed demand for diagnostic imaging systems among hospital customers. Net sales slid 6 percent to $3.68 billion, while operating income dropped to $244,690, according to the company’s fiscal 2008 earnings release.
Though the sales figures and operating income in the Medical Systems business tell a different story, Toshiba executives said the Japanese and U.S. markets for diagnostic imaging systems shrank by 15 percent in fiscal 2007 as “administrative initiatives to control medical costs cooled markets in advanced countries.” The contraction, however, was slightly offset by expanding markets in Asia, the Middle East and Latin America.
Toshiba took advantage of the opportunities in those markets by promoting sales of the Aqulion 64, a 64-slice CT scanner equipped with 64 detector channels, 3-D cone beam algorithms and volume reconstruction. The Quantum detector enables the Aquilion CT scanner to acquire 64 simultaneous slices of 0.5 mm with each 400-millisecond gantry revolution.
The company promoted other items as well, including an automated X-ray system that helps reduce procedure time; a medical resonance system that provides doctors with faster, more accurate scans; and an X-ray system that provides for head-to-toe and fingertip-to-fingertip coverage without having to pan or pivot the X-ray table.
One of the largest product launches of fiscal 2007 turned out to be the Aquilion ONE, an advanced diagnostic imaging system that provides doctors with a three-dimensional depiction of any body organ as well as the blood flow and function of that organ. The Aquilion ONE can scan one organ—including the heart and brain—in one rotation, as it covers up to 16 cm of anatomy using 320 ultra high resolution 0.5 mm detector elements. Since its launch in November 2007, the Aquilion ONE system has been installed in hospitals and imaging centers throughout the United States and Puerto Rico. The product even received the endorsement of the U.S. Department of Health and Human Services, as the National Institutes of Health installed the system in its facilities.
Toshiba’s Medical Systems business is grouped within the company’s Social Infrastructure segment, one of four business units within the firm. The Social Infrastructure segment, which includes the Medical Systems and Power Systems & Industrial Systems divisions, is one of the top revenue generators for the company. In fiscal 2007, the division reported $24.3 billion in net sales, a 39.6 percent increase compared with the $17.4 billion in sales the division posted in fiscal 2006. Sales were flat in fiscal 2008—the segment generated $24.4 billion, according to the latest earnings report. Toshiba’s most lucrative segment ($25.1 billion in fiscal 2008 sales) is Digital Products, which includes the personal computers division. The company’s Electronic Devices segment includes Semiconductor Business and LCD Business divisions, which helped generate $13.5 billion in sales during fiscal 2008. The Home Appliances segment does not contain any business divisions but serves as a “housing” unit for such companies as Toshiba Lighting & Technology Corporation, Toshiba Home Appliance Corporation, and Toshiba Consumer Electronics Holdings.
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