News
 

Bookmark and Share

(7) 

As the market of hard disk drives expanded to 139 – 140 million units in the third calendar quarter or 2013 (which equals to Q1 FY2014 of Seagate and WD), Western Digital Corp. widened the gap with Seagate Technology and shipped nearly seven million more hard drives during the period. WD’s revenue is also considerably higher compared to Seagate’s earnings.

During the third calendar quarter of 2013, WD shipped 62.61 million hard drives, whereas Seagate’s shipments totaled 55.7 million units, according to filings from the two companies. Two of the world’s largest makers of hard disk drives believe that total available market of HDDs in Q3 2013 was 139 – 140 million units. It is logical to expect Toshiba’s hard drives shipments to be around 21.19 million units per quarter.

Unit shipments of hard drives during the quarter did not exceed those from the same period last year, which indicates continued macro-economic challenges for Seagate and Western Digital. Another evidence of challenges for the two companies is decreasing average selling price: during the quarter WD’s ASP dropped to $58, whereas Seagate’s ASP decreased to $62.

Seagate reported revenue of approximately $3.5 billion, gross margin of 28.0%, net income of $427 million and diluted earnings per share of $1.16. During the first quarter, the company generated approximately $682 million in operating cash flow, paid cash dividends of $135 million and repurchased 4 million ordinary shares for approximately $182 million.

The solid financial results we achieved this quarter reflect the ongoing execution of our business model. While the challenges of technology transitions and macro uncertainty are driving us to manage our business conservatively, we remain focused on the fact that the demand for exabytes of storage continues to increase. We continue to invest in our market-leading storage technology portfolio to enable cloud, mobile and open source storage advancement as we believe these market trends represent new and significant opportunities for Seagate,” said Steve Luczo, Seagate’s chairman and chief executive officer.

Western Digital reported revenue of $3.8 billion and net income of $495 million, or $2.05 per share for its first fiscal quarter ended September 27, 2013. The company generated $680 million in cash from operations during the September quarter, ending with total cash and cash equivalents of $4.9 billion. During the quarter, the company utilized $150 million to buy back 2.3 million shares of common stock. On September 19, the company declared a $0.25 per common share dividend, which was paid on October 15.

“We continued to perform well in the September quarter as we remained focused on delivering value to our customers through differentiated and innovative storage solutions in all of our served markets. Our HGST and WD subsidiaries continued to execute very well. Outstanding linearity drove strong operating results, with gross margins above the midpoint of our model range and earnings per share well above the high end of our guidance. Longer term, we are very excited about our ability to enable the ongoing creation, storage and management of digital content by consumers and businesses,” said Steve Milligan, president and chief executive officer.

Tags: Western Digital, Seagate, Toshiba, Business, HDD

Discussion

Comments currently: 7
Discussion started: 10/30/13 05:15:25 AM
Latest comment: 10/31/13 12:29:37 AM
Expand all threads | Collapse all threads

[1-4]

1. 
I've just bought a Seagate STBV3000 3TB USB3.0 to replace a faulty WD EARS 1.5TB green drive.
0 0 [Posted by: Hung Mai  | Date: 10/30/13 05:15:25 AM]
Reply

2. 
Humanity is Of Relativity because we need to relate to derive some semblance of reality but when it comes to infinitising, it is not what is sold that matters but how it was sold. Yes, don't ask Samsung about Apple, Appling & Applites. Seagate is seething with mystified head-banging because it has always revealed its HDD specs much better than WD, at least when it comes to The Great Unwashed Joe Public [GWJP] and yet WD, through its How We Sell magic, oka The Religiosity, is able to command better price and a better image for a mostly not that great/better spec - at least for The GUJP. No wonder The Chosen Few is able to lord over Stupidity-Dumbness [SD] with ease. Yes, Multiplicity of Choices, oka Dazzling The SD, works if only because choice is SD's reason for existing. No wonder Dictators everywhere are left flummoxed about The Democraticos' HatTrick of Black vs White when all are of selfishness just below the radar, whereas above that reality, all are great judges of This, That & The Other. WD can do what it likes/wants - but not when it affects my HDD buying power, the infinitising chosen so & so.
0 0 [Posted by: cummulus  | Date: 10/30/13 07:58:58 AM]
Reply
- collapse thread

 
go home, you are drunk
0 0 [Posted by: nitro912gr  | Date: 10/30/13 10:28:04 AM]
Reply

3. 
Make sense, seagates .11 anyone?

I will never again touch seagate, even if WD start making crap HDDs...

That short of attitude from company during the .11 series incident was unbelievable... took them almost a year to say "hey our drivers have problems" and risked the data of so many people, not to mention the ones who lost their data with the stupid lock ups of the drives...
0 0 [Posted by: nitro912gr  | Date: 10/30/13 10:25:38 AM]
Reply
- collapse thread

 
I had two of those, both failed. I have bought WD ever since. It's their own fault for the situation they are in.
0 0 [Posted by: evernessince  | Date: 10/31/13 12:29:37 AM]
Reply

4. 
Seagate is too noisy
WD green is too slow.
They are all crap.
0 0 [Posted by: JanGozi  | Date: 10/30/13 03:04:26 PM]
Reply
- collapse thread

 
lol get an ssd?
0 0 [Posted by: evernessince  | Date: 10/31/13 12:28:26 AM]
Reply

[1-4]

Add your Comment




Related news

Latest News

Wednesday, October 8, 2014

8:52 pm | Lisa Su Appointed as New CEO of Advanced Micro Devices. Rory Read Steps Down, Lisa Su Becomes New CEO of AMD

Thursday, August 28, 2014

12:22 pm | AMD Has No Plans to Reconsider Recommended Prices of Radeon R9 Graphics Cards. AMD Will Not Lower Recommended Prices of Radeon R9 Graphics Solutions

Wednesday, August 27, 2014

9:09 pm | Samsung Begins to Produce 2.13GHz 64GB DDR4 Memory Modules. Samsung Uses TSV DRAMs for 64GB DDR4 RDIMMs

Tuesday, August 26, 2014

6:41 pm | AMD Quietly Reveals Third Iteration of GCN Architecture with Tonga GPU. AMD Unleashes Radeon R9 285 Graphics Cards, Tonga GPU, GCN 1.2 Architecture

Monday, August 25, 2014

6:05 pm | Chinese Inspur to Sell Mission-Critical Servers with AMD Software, Power 8 Processors. IBM to Enter Chinese Big Data Market with the Help from Inspur