10 Updates
Western Digital Earnings Preview: Enterprise and SSD Storage To Drive Quarter

Western Digital Earnings Preview: Enterprise and SSD Storage To Drive Quarter

Jan 21 2014, 2:24pm CST | by

Western Digital Corporation , a leading manufacturer of electronic storage products for personal storage and enterprise applications, will announce its Q2 fiscal 2014 earnings on January 22. With...

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26 weeks ago

Western Digital Earnings Preview: Enterprise and SSD Storage To Drive Quarter

Jan 21 2014, 2:24pm CST | by

Western Digital Corporation , a leading manufacturer of electronic storage products for personal storage and enterprise applications, will announce its Q2 fiscal 2014 earnings on January 22. With an industry-wide decline in both the number of PC storage units shipped and the average selling price of PC units, the company expects revenues to remain flat over the previous quarter.

Amid weak results from the core PC storage business, Western Digital expects the next few quarters to be driven by enterprise and cloud storage. Additionally, solid state drives are increasingly becoming crucial for storage companies due to a greater demand for high performance drives in data centers and enterprise storage units. In an attempt to boost its solid state drive offerings, the company acquired a number of companies including sTec, Velobit and Virident last year. On the back of these acquisitions and a increasing mix of high-margin enterprise and non-computing units shipped, WDC’s stock price nearly doubled in 2013. We have a $80 price estimate for Western Digital , which is slightly below the market price.

See Our Full Analysis On Western Digital

Enterprise And Non-Compute Segments To Perform

The data storage demand from enterprises and data centers has been increasing due to growing Big Data and digital content. In the previous quarter, WDC shipped almost 8 million enterprise storage units, a 25% increase from the same period in 2012. The company’s management forecasts data requirements to grow at 34% CAGR through 2020, with the trend shifting from personal storage towards enterprise and cloud storage.

In the last quarter, 53% of the company’s revenues were generated by non-PC units that include enterprise storage units and personal storage units for TVs, DVRs and gaming consoles, despite the fact that only 35% of the units shipped were non-PC units. The shift away from desktop and laptop storage could help the company to improve overall margins since enterprise storage units have higher margins than PC storage units.

Western Digital’s fastest-growing individual segment is the enterprise SSD division, which witnessed 50% year-over-year growth in revenues in the previous quarter. Although it contributed only $106 million to the top line, the company expects the figure to become more prominent in the coming quarters. High-performance solid state drives are the key to generating high margins for storage companies over the next few quarters. SSD technology is at a stage where consumers can benefit from SSDs with few cheaper alternatives available that match them in performance. In the long run, WDC will look to explore cheaper alternatives to SSDs like its competitor Seagate , as well as new technologies for enterprise and cloud storage . But in the near future, storage companies are likely to capitalize on the high-margin solid state storage drives.

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Source: Forbes Business

 
Update
10

6 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

Cambodia's Famous Battambang Circus
KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

6 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

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KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken i ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

6 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

Federal Aviation Administration Bans All US Flights To Israel
KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Rak ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

6 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Se ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

6 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

INDIA-CHINA-DIPLOMACY-TRADE
PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern states last ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

6 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

Government Weekly Cabinet Meeting
KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.7 ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

6 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Mustapa Moham ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

Iskandar Johor Open - Previews
JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 million ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

EurAsia Cup presented by DRB-HICOM - Day One
PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Bazaar Sche ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara S ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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