Feeds

Western Digital cuts revenue forecast, cites 'muted demand'

Follows Intel into fiscal hidey-hole

  • alert
  • submit to reddit

The essential guide to IT transformation

Storage megacorp Western Digital dropped a bomb on its investors – and the entire computer industry – by announcing that it was lowering its revenue projections for its first fiscal quarter, which will end on September 28.

That quarter, the company said in a press release on Thursday, will now see revenues of between $3.9 billion to $4.0 billion; Western Digital's previous guidance had been for $4.2 billion to $4.3 billion.

In the release, the drive giant blamed the downgrade on the fact 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."

Just one week ago, a similar drop in demand led Intel to also revise its revenue forecasts, lowering its third-quarter guidance to between $12.9bn and $13.5bn, down from its earlier projections of $13.8bn to $14.8bn.

Intel's downgrade was a 6.5 per cent reduction; Western Digital's was a bit higher at 7.1 per cent. Intel blamed its slippage on "softness in the enterprise PC market segment; and slowing emerging market demand" – which The Reg translates as being simply a more verbose way of describing what Western Digital called "muted demand".

Interestingly, the Irvine, California, drivemaker's downgrade comes at a time when its business should be doing relatively well – if it weren't for that pesky muted demand. Western Digital acquired Hitachi GST this March, a full year after announcing its intention to do so, and it appears to be recovering nicely from the last year's Thailand floods, which put a serious crimp in its production.

It may be too early to move all your assets into gold, but this new wave of "muted demand" and "softness" does appear to be muting and softening hopes for a full recovery from the multi-year Great Recession. ®

Next gen security for virtualised datacentres

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?