Hitachi GST: Fiscal 3Q10 Financial Results

We publish here only the results of Hitachi Ltd.
for its hard disk drive activity during third fiscal quarter ended on September 30, 2010.

Hard disk drives (Hitachi GST) revenues in ¥ billions

	3Q09	3Q10
Revenues	121.0	128.7
*Growth from previous year*		6%
Operating income (loss)	5.5	11.9

(Source: Hitachi Ltd.)

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

	3Q09	3Q10
Revenues	1,292	1,498
*Growth from previous year*		*16%*
Operating income (loss)	59	138

(Source: Hitachi Ltd.)

Hard disk drives (Hitachi GST) in number of units

(in thousands)	3Q09	3Q10	*Growth*
Notebook, CE 2.5-inch	14,300	16,800	*17%*
Desktop, CE 3.5-inch	8,200	8,400	2%
Enterprise	1,500	1,800	20%
Emerging (automotive, etc)	570	790	39%
External HDDs	450	960	113%
TOTAL	25,020	28,750	15%

(Source: Hitachi Ltd.)

Comments

Revenues and operating profits are lower compared to former quarter even if HGST shipped more 2.5-inch and 3.5-inch HDDs, and much more external units. But this period was also more difficult for its competitors because of price pressure.

For 3CQ10, TrendFocus estimates the market share of HGST in number of units at 17.5%, behing WD (30.9%) and Seagate (30.0%), and in front of Toshiba (11.3%) and Samsung (10.3%).

In conclusion, being in good health and profitable, HGST is in good financial position to succeed for an eventual IPO.