HDS: Fiscal 1Q10 Financial Results (Update)

Hitachi, Ltd. recently reported its Q1FY10 financial results. Following is a summary of the Hitachi Data Systems (HDS) portion.

Consolidated revenues (revenues from Hitachi Data Systems + revenues of storage systems sales in Japan) for the first quarter fiscal year 2010 were $804 million US dollars, up 13% year on year. This was Hitachi Data Systems’ third consecutive record quarter. The first quarter, which ended June 30, 2010, was the best Q1 in HDS history, beating the company’s previous best first quarter by $100 million US dollars.

HDS’ Q1FY10 results continue to show increased diversity between hardware, software and services, with solid growth across all areas. Fueled by strong AMS system sales and increased USP V/VM platform adoption, the company’s hardware revenue was up double digits from Q1FY09. Likewise, software and services revenues grew double digits year-over-year and now account for nearly half of HDS’ total revenue, which is a higher percentage compared to the previous year. The increase in software and services revenues was attributed to increased traction in virtualization software such as Hitachi Dynamic Provisioning. HDS’ file and content portfolio, which includes the Hitachi High-performance NAS Platform and Hitachi Content Platform products, also showed strong year-on-year growth; in fact, the file and content portfolio recorded a 200% increase in FY2009 compared to FY2008.

HDS posted growth in every major region including the Americas, EMEA and APAC (not including domestic Japan sales).

Geographical from Q1FY09:

• Americas revenues grew 27%
• EMEA revenues grew 4%
• APAC revenues grew 19% (number excludes Japan domestic sales.)

Portfolio Mix:

• Approximately 55% hardware (consolidated revenues)
• Approximately 15% software (consolidated revenues)
• Approximately 30% services (consolidated revenues)