Western Digital and Seagate recently announced their results which showed huge improvement in their sales and earnings. This should bode well for Dufu Technology as Western Digital and Seagate are its two main customers. Dufu quarterly results for 1Q 2010 should be out in end May 2010 and expected to be favorable.
News on Western Digital as shown below:
SAN FRANCISCO: Western Digital Corp reported better-than-expected results and set a forecast for the current quarter that topped Wall Street's targets, as it forecast robust demand for its hard drives, according to Reuters. The company's shares rose less than one percent in after-hours trading.
Western Digital's results come on the heels of a strong report from chief rival Seagate. Both companies are benefiting from renewed demand for personal computers, as businesses finally begin to loosen their purse strings to upgrade aging technology hardware.
Western Digital forecast earnings for the current quarter of $1.40 to $1.50 a share on revenue of $2.475 billion to $2.575 billion. Analysts are expecting a profit of $1.36 a share on revenue of $2.45 billion for the June quarter.The company also expects fiscal 2010 capital expenditures to be at the high end of its forecast range, indicating it will bring additional manufacturing capacity online.
"The strength we've seen in the last 12 months in consumer, which has been considerable and above everyone's expectations, (is) now being augmented by the beginnings of a corporate purchasing cycle," Chief Executive John Coyne said on a conference call with analysts.
Western Digital's shares received only a small boost in extended trading. Wedbush Morgan analyst Kaushik Roy said the strong results and forecast were already baked into the company's stock price. "It was expected that they would have a good quarter and if you look at the chart, the stock is tired, it wants a break," he said.
Western Digital's shares are up roughly 90 percent from a year ago. The company's shipments in the quarter rose 62 percent to 51.1 million units, surpassing Seagate's total. Western Digital, which is more reliant on consumer sales, said it took share in the overall hard drive market.
There is ample evidence of an upswing in spending on technology hardware. Research group IDC said global PC shipments surged 24 percent in the January-March quarter. Western Digital said net income rose to $400 million, or $1.71 a share, in the fiscal third quarter ended April 2, from $50 million, or 22 cents a share, in the year-ago period.
The average analyst estimate called for a profit of $1.55 a share, according to Thomson Reuters I/B/E/S. Revenue rose 66 percent to $2.64 billion, above Wall Street's target of $2.54 billion. Gross margin was 25.2 percent, better than the consensus estimate of 24.4 percent.
The shares of Lake Forest, Calif.-based Western Digital closed at $40.68 on the New York Stock Exchange and rose to $41 in extended trading. - Reuters
Source: The Edge
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