Hitachi GST and HDS: 1Q10 Financial Results

We publish here only the results of Hitachi Ltd. for its storage activities during its fiscal quarter (FY09) ended in March 31, 2010. Hitachi GST’s FY ending in December, below are the updated financial results for its 1Q10 fiscal period.

Storage solutions revenues (HDS and Japan)
(FY ending in March)

(in ¥ billions)	FY08	FY09	FY10 Forecast
Revenues	340.0	304.0	292.0
Growth from previous year		*-11%*	-4%

(Source: Hitachi Ltd.)

Hard disk drives (Hitachi GST) revenues in ¥ billions
(FY ending in December, 1Q ending in March)

	FY08	FY09	1Q09	1Q10
Revenues	573.3	451.7	97.7	132.3
*Growth from previous year*		*-21%*		35%
Operating income (loss)	21.4	9.2	(5.4)	19.7

(Source: Hitachi Ltd.)

Hard disk drives (Hitachi GST) revenues in U.S. $ millions
(FY ending in December, 1Q ending in March)

	FY08	FY09	1Q09	1Q10
Revenues	5,574	4,821	1,026	1,459
*Growth from previous year*		*-14%*		51%
Operating income (loss)	208	106	(57)	217

(Source: Hitachi Ltd.)

Hard disk drives (Hitachi GST) in number of units
(FY ending in December, 1Q ending in March)

(in thousands)	FY08	FY09	*Growth*	1Q09	1Q10	Growth
Notebook, CE 2.5-inch	48,200	50,600	5%	10,200	15,700	54%
Desktop, CE 3.5-inch	36,200	31,700	-12%	7,600	7,800	3%
Enterprise	5,700	5,500	-4%	1,100	1,500	36%
Emerging (automotive, etc)	1,140	2,070	+82%	220	780	255%
External HDDs	–	1,550	–	–	800	–
TOTAL	91,240	91,420	0%	19,120	26,580	39%

(Source: Hitachi Ltd.)

Comments

Bad results for storage subsystems: sales in Japan and outside (HDS) decreased 11% in FY09, and Hitachi projects lower revenues (-4%) in FY10.

But the HDD activity is booming. Hitachi GST shipped 26.6 million of drives in 1Q10, 39% more than in 1Q09 with an exceptional growth for 2.5-inch notebook devices (+54%) - representing 15,700 units, more than Seagate but less than WD for the same three-month period - and enterprise devices (+36%). Total year-to-year revenues increased by 51% at $1,459 million. Note that Hitachi GST sold twice more notebook HDDs compared to desktop 3.5-inch units and continues to be a strong actor - behind Seagate - in enterprise drives.

Consequently, this disk drive business is now profitable with $317 million in operating income for the most recent quarter from a year-earlier loss of $57 million. Sequentially, this activity grew 5% in dollar and 7% in units.