Concentrating on the areas of business that he can control is an example of the effective leadership demonstrated by Larry White. In the past five years, the CEO of Toshiba America Business Solutions has been inundated with uncontrollable challenges—the pandemic, supply chain shortages, logistics hurdles and, most recently, the rise in tariffs for goods produced in countries where the company manufactures its gear—that would keep most people awake at night.
White can see right through the veil of variables that seems to be obfuscating Toshiba’s performance. The Lake Forest, California-based manufacturer may have felt the brunt of President Trump’s tariffs earlier this year, but that hasn’t stymied its performance. Whether it’s thermal printing solutions, Elevate Sky Translate service, workflow software or MPS, Toshiba is capturing net-new dealer partners who are intrigued by beyond-the-box possibilities—including several that are AI-infused.
Although the OEM is reconciling tariffs and possible price increases, White knows that signs of success aren’t always found on a P&L statement. He sat down with ENX Magazine to share how Toshiba has not been carried away by business headwinds, but rather uplifted by the growth the aforementioned solutions have provided.
How did Toshiba perform during the most recent fiscal year from an office imaging equipment standpoint? How did results compare with expectations?
White: In fiscal year 2024, we achieved 101% of our revenue plan. The real standout is that we surpassed our FY19 numbers on the revenue side, which is significant. FY19 was the last year unaffected by COVID-19 or supply chain disruptions, and many companies have struggled to reach those levels again. Surpassing that benchmark, particularly in print, was a meaningful accomplishment.
We also saw strong momentum in our software business, with notable growth in that segment. The metric I pay closest attention to is our annuity stream, which grew 32%. That figure reflects the expansion of our cloud-based business, which is where the future lies. We also had our best year ever in thermal printing thanks to two large projects—one of which involved more than 42,000 units. On top of that, our SaaS-based managed print services business grew 10%. We met or exceeded every target, including profitability.
However, moving into Q1 of fiscal 2025, while we hit revenue expectations, profits were pressured by tariffs. In April, tariffs on products from China rose dramatically from 25% to 152% while tariffs from Malaysia, Vietnam and Indonesia nearly doubled. Unfortunately, two major shipments arrived from China during the peak tariff window, which significantly impacted profitability. That was difficult to ingest. Sometimes luck is on your side, but the timing was definitely bad luck. While we remained profitable, we fell short of our target. It is what it is. We can’t pass on all those costs or cut expenses enough to offset them, but we’re adjusting operations accordingly and will likely raise prices.
What messaging have you shared with your dealer partners regarding tariffs and pricing?
White: Transparency is essential. When tariffs spiked to 152% on some China-sourced products, we immediately informed our dealer partners. Honesty is the most important element of these discussions. Price increases are inevitable—it’s just a matter of when and by how much. The more advance notice we provide, the better positioned our partners are.
In every dealer conversation, we address tariffs, what portion of the cost Toshiba will absorb and what we must pass along. We also discuss cost-cutting initiatives on our side to minimize the burden. While no one likes higher prices, our partners have been very understanding. They recognize that, in our position, they would likely make the same decisions.
What kind of feedback have your dealer partners shared regarding their customers? Is there a hesitance to pull the trigger on capital purchases?
White: There’s some hesitancy in the marketplace, but it’s relatively minor—perhaps around 5%. One advantage of our industry is that 70% of the products in the field are leased. As leases expire, customers must decide whether to upgrade, which sustains demand. Upgrading is inevitable.
Where we see more hesitation is in the public sector. That said, it hasn’t been significant. For the most part, business is continuing as usual. The real test will come as more costs are passed on, but so far, the impact has been less than I would have expected even six months ago.
What were some of Toshiba’s greatest triumphs over the past 12 months? What resonated the most with you?
White: We’ve had several wins. The large thermal printing project I mentioned earlier was a major success that provided a big boost to our business. It was a difficult implementation, but our team executed it brilliantly. Another highlight was the launch of Elevate Sky Translate, a Google AI–assisted technology that translates not just words but context. Previous solutions could only translate literal text, but this one maintains meaning.
That capability is particularly valuable in education, where schools must provide translation services to students and parents, often as a legal requirement. It’s especially important for documents that children take home to their parents. It’s also critical for the health care and government sectors. Seeing this solution adopted in those sectors has been very rewarding, not to mention exciting.
We also launched AI-assisted workflow software and expanded our Elevate Sky Print Management platform. It’s growing like gangbusters, well over 100%. These software innovations are especially exciting because they’re unaffected by tariffs, making them both strategically and financially attractive. That’s also quite exciting. The growth validates the years of effort we’ve invested in transforming the business.
AI is a growing part of the technology conversation, and your Elevate Sky Workflow offering is a prime example. How do you see AI influencing Toshiba internally?
White: AI is already shaping our business in meaningful ways. In cloud services, for instance, we manage 4TB of daily data from connected devices. We use that information for predictive maintenance. Before incorporating AI, our call prediction accuracy was about 70%. With AI, it’s now over 83%, a significant improvement achieved with just two months of data. That number will only improve over time.
Beyond service, AI is transforming our marketing and training processes. Previously, producing a training video could take two weeks and cost $5,000–$10,000. It was a multi-person project that required scripting the video, filming it, editing it and then distributing it. Today, with AI tools, we can create a training module in half a day at minimal cost. Even better, the content can instantly be generated in Spanish and Portuguese, enabling us to serve all of the Americas with one production. While the quality may not match a high-end studio version, it’s more than sufficient for training purposes and the difference is barely noticeable.
We’re also piloting AI software that can place customer calls, such as collecting meter reads, in a way that’s virtually indistinguishable from a human caller. While AI won’t replace people, it allows us to redeploy talent toward higher-value work. The possibilities are enormous, and the learning curve is both exciting and, at times, daunting.
A lot of energy has been geared toward advancing thermal printing technology, including the release of the BX410T. How is Toshiba faring on the labeling battlefront?
White: Dealer adoption has exceeded expectations. What excites me is that it’s not just Toshiba dealers embracing the program; dealers who typically carry competing lines are signing on as well. Once they get a taste of the Toshiba experience, it opens opportunities to discuss our A3 MFPs and software portfolio.
Our strategy continues to emphasize three pillars: print, software and cloud-based managed print services. We remain strong advocates of print, we’re evangelizing thermal technology and we’re driving rapid growth in software. Each is performing well. The only real obstacle continues to be tariffs.
Toshiba was recognized by Keypoint Intelligence as a logistics leader for the fourth-consecutive time. What are the variables that make Toshiba particularly effective in this realm?
White: Logistics is often underappreciated, yet it’s vital to customer satisfaction and profitability. We understand this very well because our logistics team fine-tunes numerous critical supply chain variables weekly, if not daily. Their expertise was especially visible during the supply chain crisis when they kept product flowing under immense pressure—they’re an essential part of our success.
Because we understand what it takes to be successful in this area, we also know how to design products ideal for these demanding manufacturing, logistics and retail environments. We’re proud of outscoring our competitors with our hardware, service and support, software, security and more. We earned high points for the reliability and durability of both our MFPs and our label and receipt printers, and we’re very proud of being able to offer this full line-up of award-winning print capabilities to our dealers and our clients.
It’s been a couple years since the last LEAD conference for Toshiba dealers. When can we expect to attend the next event?
White: We’ve signed the contract and locked in the date. The next LEAD conference is scheduled for May 2027. While I can’t share details yet, it will be fresh, engaging and a bit different. These events are always energizing, bringing together customers, partners and the press in one place.
What will be the keys to garnering a greater market share moving forward?
White: Our distribution model relies on two pillars: our direct branches and our dealer network. The branches are performing very well, so we won’t be looking to expand. On the dealer side, the focus is on gaining more space within current partners’ portfolios and recruiting new dealers in underrepresented markets.
In markets where dealers are thriving, we’re committed to supporting them. But in other regions, we see opportunities to expand. For dealers dissatisfied with their current manufacturer, our message is simple: we’d love to talk to you.
Beyond the financials, what will a successful Q4 2025 and calendar year 2026 look like in your estimation? What are some of your goals?
White: Success isn’t defined solely by revenue or profit. While hitting financial benchmarks is important, I take equal pride in how our people perform under pressure. During the supply chain crisis, for example, our team worked tirelessly and resourcefully despite enormous challenges. They made the best with the hand they were dealt. That level of dedication is inspiring.
Recognition as one of Orange County’s best companies to work for is another point of pride. When employees are engaged and proud of where they work, the entire organization performs better. That’s not something you measure with numbers, but it’s critical to long-term success.
Culture is at the heart of everything. If customers ever felt Toshiba was difficult to do business with, that wouldn’t show up immediately on a P&L but it would eventually. Culture takes years to build, and if it’s strong, it shows in results. Ultimately, with the right people, culture and focus, the financials will take care of themselves.
