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Witten’s Q3 Baojie Data Center starts to pull goods, and Chia coin brings strong demand for hard disks up more than 5% after the market | Anue Juheng

Witten Electronics (WDC-US) announced the F2021 third quarter financial report after the market on Thursday (29th). Revenue and financial estimates are better than market expectations. Witten believes that the demand for memory is strong, and the data center is gradually gaining momentum. The emerging Chia coin is also causing a surge in demand for hard drives, and the optimistic outlook has encouraged a surge of more than 5% after the market.

Witton’s third quarter (end of 3/31) revenue was US$4.1 billion, a year-on-year decrease of 1%, but exceeded the company’s original estimate of US$3.8 billion to US$4.05 billion in the previous quarter, and non-GAAP earnings per share were 1.02 The US dollar is also much higher than the company’s original forecast of 55 cents to 75 cents.

Witten Electronics estimates that under non-GAAP accounting standards, the revenue range for the fourth quarter as of June will fall between 4.4 billion and 4.6 billion U.S. dollars, and EPS will be between 1.3 and 1.6 U.S. dollars, which is better than market expectations of 4.3 billion and 4.3 billion U.S. dollars. US$1.02, and the gross profit margin is between 30% and 32%.

Witten rose 0.75% to US$71.13 on Thursday. After the market announced its excellent financial report and optimistic outlook, the stock price rose 5.44% to US$75 after the market.

Witten CEO David Goeckeler said that the price of cache memory continues to rise, and the company will increase the price of goods sold by retailers every week or even every day.

Although Goeckeler refused to provide a long-term outlook for memory prices, he said he has continued to see strong demand. Goeckeler said that although the company’s microcontrollers and other parts are in short supply, it does not affect the company’s operations.

Goeckeler did not comment positively on the rumors of acquiring the Japanese memory manufacturer Kioxia, only that the partnership is great, including R&D and production. He said that Witten and Kioxia are two of the world’s largest cache memory companies, and that operating this market requires a certain scale.

In addition, Goeckeler pointed out that the rise of the new cryptocurrency Chia (Chia) is driving the market’s demand for high-capacity hard disks. This type of cryptocurrency focuses on growing money rather than mining, and requires large-capacity hard disks in the process.

Q3 Performance of each department

Witten said that the third quarter revenue performance was excellent, mainly due to the growth momentum of energy-assisted magnetic recording technology (EAMR) hard drives and solid state drives (SSD). In addition, the price trend of NAND cache memory is also a reason. One.

From the perspective of the terminal market, thanks to the continued strong demand for laptops and desktops, and the mass production of new game consoles, the third-quarter revenue of the client device business was US$2 billion, an annual increase of 10%.

Data center equipment revenue was US$1.2 billion, a year-on-year decrease of 19%. However, the company is still optimistic about the market outlook, saying that it currently sells NVMe (NVM Express, non-volatile memory) to cloud giants (maybe Amazon, Microsoft or Google) Commercial SSDs show a continuous growth trend.

Witten further said that its EAMR hard drives have passed the certification of cloud giants and almost all cloud computing and enterprise customers. On the other hand, due to strong retail product sales, customer solutions revenue was US$888 million, an annual increase of 8%.


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