Hitachi GST: 2Q10 Financial Results

We publish here only the results of Hitachi Ltd.
for its disk drive activity during its second quarter ended on June 30, 2010.

Hard disk drives (Hitachi GST) revenues in ¥ billions

	2Q09	2Q10	6 mo. 09	6 mo. 10
Revenues	108.0	138.4	205.6	270.7
*Growth from previous year*		*28%*		32%
Operating income (loss)	(3.1)	17.1	(8.6)	36.8

(Source: Hitachi Ltd.)

Hard disk drives (Hitachi GST) revenues in U.S. $ millions

	2Q09	2Q10	6 mo. 09	6 mo. 10
Revenues	1,109	1,504	2,135	2,963
*Growth from previous year*		*36%*		39%
Operating income (loss)	(32)	186	(89)	403

(Source: Hitachi Ltd.)

Hard disk drives (Hitachi GST) in number of units

(in thousands)	2Q09	2Q10	*Growth*	6 mo. 09	6 mo. 10	Growth
Notebook, CE 2.5-inch	11,700	16,600	*42%*	21,900	32,300	47%
Desktop, CE 3.5-inch	8,700	8,200	-6%	16,400	16,000	-2%
Enterprise	1,200	1,900	58%	2,300	3,400	48%
Emerging (automotive, etc)	440	860	95%	660	1,650	150%
External HDDs	220	660	200%	220	1,460	*564%*
TOTAL	22,260	28,220	27%	41,480	54,810	32%

(Source: Hitachi Ltd.)

Comments

HGST recorded excellent results in notebook and enterprise HDDs but poor ones in desktop devices. The highest growth appeared to be in drives for emerging applications - a niche market -, and above all in external HDDs where the company entered recently. In this later category, the company is far behind WD ans Seagate in units shipped.

During the quarter ending last June, HGST grew faster (36%) in revenues than WD (+24%) and Seagate (+13%) and continued to be profitable, like its two competitors.