Not a lot in STX's announcement for HTCH followers to care about. Earnings miss (who cares), revenue hit (who cares), 49.2M units shipped. Units shipped matters a little, but this is in line with expectations and WDC is more important (since their are actually customers) and so this is not a big deal. While STX can't give projections because of regulatory requirements related to their possible buyout, it'll be interesting to see if they say anything new about the industry as a whole. I wouldn't think anything earth-shattering would come of it. Anyone see things differently?
The real news, as another poster already said, will come next week when we find how HTCH is doing getting production back in line, and getting Thailand online.
I agree. The HTCH share price in the short-term, in my opinion, has much more to do with management getting its act together than the macro environment, in general, and the storage sector, in particular.
If they have resolved the production problems and have stopped the loss of market share, the share price should pop. Buying back their convertible bonds at 75 cents on the dollar would be icing on the cake.
Well, maybe it's share price SHOULD depend only on management. Sadly, it looks like it is hypersensitive to something in the environment. The sensitivity goes both ways, of course, so maybe it'll catch a nice breeze before earnings.
I will be curious to see what has been happening with market share and production. The bar is pretty low at this point, and I think you are right that just stopping the bleeding of market share will be seen as a positive. Hell, just meeting their projections would be seen by me as a small miracle. (Not because their projections are good, or I'm expecting anything in particular, but because they have been SO bad at seeing the future for the last 18 months.)
It will also be interesting to see what they've done with the biomeasurement albatross, but that should be a big deal.