"Since FY13, both STX & WDC have experienced similar decreases in revenue. I think the primary reason for the larger decease in net profitability at STX has been fairly obvious: they haven't reduced expenses as quickly as WDC in response to demand decrease"
You want to think about that my friend?
FYI over the past 3 years, STX has lower Opex as % of sales than WDC
For FY13-Opex as % of sales WDC 14.8%, STX-12.3%
For FY14-Opex as % of sales WDC-16.2% , STX-14.2%
For FY15-Opex as % of sales WDC 16.3%, STX-16.0%
"As for STX being "late" on SAS SSD. Wait a minute .... STX sold enterprise SSDs before WDC purchased STEC"
FYI, WDC #1 in SAS SSD and #3 overall in SSDs, where is STX?
Benchmark not the only firm that downgraded STX, Morgan Stanley went to sell 7/23/15 with $38 target price, one of the reasons was a continued drag from Xyratex business will pressure margins.
On 7/7/15, Needham' s Kugele significantly lowered his STX estimates and also lowered STX's price target from $68 to $55, still maintained STX a strong buy. I guess he really likes that Olive Oil? LOL!
FYI, Morgan Stanley, Benchmark, and Needham are the 3 longest tenured STX Analysts.
The bulls whine about FUD attacks by the shorts, but here you have three articles touting the same bullish analyst in 24 hours who has been pumping STX 24/7 as it crashed, while bearly acknowledging a downgrade.
There are few, if any analysts, who have been able to tell the STX story without bias. The I bank STX basher club has charter members like Goldman, JP Morgan, Barclays, and more recently B of A. At the same time, the Needham and Brean Analysts, who had the first two questions after the presentation was done, are notorious Luzco butt lickers
Don't know if you caught it during the presentation, but Luzco sent a case of Olive Oil to his buddie, Rich Kugele, at Needham.
Too bad, none of the cheerleaders pressed Luzco on what's really going on with SSDs or how the new acquisitions are working out?