February 12th, 2008
Written by Naveen Selvaraj
Logitech International S.A (NASDAQ:LOGI), Plantronics, Inc. (NYSE:PLT) and Synaptics, Inc (NASDAQ:SYNA) are among the peripheral vendors covered at Gridstone Research. A quick analysis of the revenue and operational metrics disclosed by the three vendors provides two interesting insights.
• Robust PC industry growth, led by notebook shipments, leads to interface peripherals growth. Such peripherals include pointing/interface devices such as Mice, Keyboards, Remotes and Touch Pads.
• Multimedia peripherals had a poor quarter. Multimedia peripherals include headsets, PC speakers, docking audio, gaming peripherals and webcams.
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February 1st, 2008
Written by Naveen Selvaraj
Update(February 28th,2008) - Mid-quarter update from WDC
“…The Company’s performance thus far is better than originally anticipated going into the March quarter, based on strong execution and its leading product and technology portfolios. The Company now expects revenues in the March quarter in the range of $2.0 billion to $2.075 billion (which includes approximately $75 million in media and substrate sales), gross margin of approximately 22% and earnings per share of between $1.05 and $1.11. This compares with revenue of $1.4 billion, gross margin of 15.8% and earnings per share of $0.53 in the year-ago quarter.”
Seagate Technology Inc (NYSE:STX) and Western Digital Corporation (NYSE:WDC) reported strong results for the QE Dec07. Both achieved strong volume growth and significant margin expansion to showcase (See Exhibit I). These results augur well for the PC makers HPQ and DELL who will announce their quarterly results on Feb 19th and 28th respectively. read more…
January 11th, 2007
Written by Naveen Selvaraj
Recent trends in revenue growth, unit shipments and operating margin point to HPQ overtaking DELL in the battle for supremacy in personal systems. Barring a reversal of this trend, we think that HPQ is positioned to capture the majority of growth and eventually prime position in this important market.
Our Gridstone analysis over the past eight quarters shows that DELL’s revenue from Desktop PCs and Mobility Systems has declined 0.6% CAGR. During the same period, HPQ’s revenue from Desktop and Notebook systems has grown 7.7% CAGR (See Exhibit 1.) Most importantly, HPQ captured the majority of growth in the notebook segment, increasing revenue a whopping 21.7% CAGR – almost double DELL’s respectable 12.2% mobility growth rate. If these growth rates persist, we anticipate that HPQ will surpass DELL in notebook/mobility systems revenue during 2007.
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