Japan's Toshiba Corp. said Friday its net profit plummeted a staggering 95 percent in the January-March quarter due to losses related to its exit from next-generation video HD DVD business.Toshiba's net profit stood at 1.25 billion yen ($12 million), sharply down from 26.17 billion yen a year earlier. "Our net profit sharply fell due to the end of HD DVD business," Toshiba spokeswoman Hiroko Mochida said, adding the company incurred operating losses worth 60.2 billion yen ($580 million) soley due to its withdrawal from the sector.

Toshiba announced the end of its HD DVD business in February. The technology had been competing against Blu-ray disc technology, backed by Sony Corp., Matsushita Electric Industrial Co., which makes Panasonic brand products, five major Hollywood movie studios and others.

Apart from the HD DVD factor, Toshiba said its net profit plunged during the quarter due to a drop in flash memory chips.

Quarterly revenue fell 3 percent from a year earlier to 2.09 trillion yen (US $20 billion).

In the financial year through March, Toshiba's net profit declined seven percent to 127.4 billion yen ($1.2 billion).

The earnings report came after the end of trading on the Tokyo stock exchange. Shares in Toshiba fell 2 percent 848 yen on Friday.

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