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WD anticipates 11 percent lower HDD demand due to slow PC demand

Posted on Monday, September 17 2012 @ 17:08:56 CEST by


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Western Digital send out a warning to investors that revenue for its current fiscal quarter, ending September 28, will fall short of expectations due to poor PC demand and inventory rebalancing. The HDD maker now anticipates shipments of 140 million units, 11 percent less than the previous forecast 157 million units,
The company also announced that it now expects the industry’s total available market (TAM) for hard drives in the September quarter to be approximately 140 million units versus its earlier forecast of 157 million units, due to muted demand and inventory rebalancing. As a result, the company now expects revenue for its first quarter ending Sept. 28, 2012, will be approximately $3.9 billion to $4.0 billion, compared with its previous expectation of $4.2 billion to $4.3 billion. The company continues to estimate its gross margin for the September quarter to be approximately 30 percent on a non-GAAP basis.

The company reiterated its non-GAAP $10 earnings per share target for the fiscal year ending June 28, 2013.




 



 

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