What are you looking for ?
Infinidat
Articles_top

Seagate: Preliminary 1Q13 Financial Results

Revenue to decrease Q/Q, like WD

On September 21, 2012, Seagate Technology plc provided an update on the quarter ending September 28, 2012 and the fiscal year ending June 28, 2013.

The company expects the industry’s total available market for hard drives in the September quarter to be approximately 140 million units and it expects to maintain 40% to 43% market share.

As a result, the company estimates revenue for the September quarter to be approximately 5% to 7% lower than its previous guidance of $4 billion.

It estimates its gross margin for the September quarter to be approximately 30%.

For fiscal year 2013, the company expects to incur operating expenses, excluding cost of revenue, of approximately $400 million per quarter. In addition, capital expenditures for fiscal year 2013 are expected to be approximately $750 million.

Comments

The third quarter of 2012 ending in September was a bad one for the two largest HDD makers.

Both Seagate and WD estimate that the total number of HDDs shipped by the industry for the period will be only 140 million units, compared to previous expectation of 157 million by WD.

Also TrendFocus' analysts wrote that 140 million is well below its expectations provided in July (164.8 million) for 3CQ12 and a few percentage points below reduced outlook, compared to its figure of 157.3 million in 2CQ12, adding:" We'll have a rarity on our hands: a TAM - Total Available Market - that is lower in CQ3 than in CQ2."

WD will probably continue to be in 3CQ12 the leader of the industry in HDD shipped, as well as in revenue to be the range of $3.9 billion to $4.0 billion compared with its previous expectation of $4.2 billion to $4.3 billion or a significant Q/Q decrease, between 16% to 18%.

For Seagate it will be in the range of $3.7 billion to $3.8 billion sales, down between 5% to è%, lower than its previous guidance of $4 billion.

Generally, when the HDD demand is decreasing, the prices are going down. But here they will probably decrease by a tiny percentage, continuing ti be much higher than their amount before the Thai flood. Seagate estimates its gross margin for the September quarter to be approximately 30%. It reports a gross margin of 33.1% for the June quarter on a GAAP basis and 33.6% on a non-GAAP basis. WD continues to estimate its gross margin for the September quarter to be approximately 30% on a non-GAAP basis. It was 31% for the former three-month period.

       Revenue of Seagate and WD in $Million

 Vendor  3CQ11 2CQ12
  3CQ12*   Q/Q
growth

  Y/Y
growth

 Seagate   2,811  4,482    3,720
 to 3,800
  -7%
 to -5%
  32%
 to 35%
 WD   2,694  4,754    3,900
 to 4,000
 -18%
 to -16%
  45%
 to 48%
  * Preliminary results

Articles_bottom
AIC
ATTO
OPEN-E