Monday, July 31, 2017

Western Digital: Fiscal 4Q17 Financial Results - Twice more revenue than Seagate

Western Digital Corp. reported revenue of $4.8 billion, operating income of $652 million and net income of $280 million, or $0.93 per share, for its fourth fiscal quarter ended June 30, 2017.

The GAAP net income for the period includes charges associated with the company's recent acquisitions. Excluding these charges and after other non-GAAP adjustments, fourth quarter non-GAAP operating income was $1.2 billion and non-GAAP net income was $881 million, or $2.93 per share.

In the year-ago quarter, the company reported revenue of $3.5 billion, operating loss of $195 million and net loss of $366 million, or $(1.40) per share. Non-GAAP operating income in the year-ago quarter was $451 million and non-GAAP net income was $269 million, or $1.02 per share.

The company generated approximately $1.0 billion in cash from operations during the fourth fiscal quarter of 2017, ending with $6.5 billion of total cash, cash equivalents and available-for-sale securities. On May 3, 2017, the company declared a cash dividend of $0.50 per share of its common stock, which was paid to shareholders on July 17, 2017.

For fiscal 2017, the company achieved revenue of $19.1 billion, operating income of $2.0 billion and net income of $397 million, or $1.34 per share, compared to fiscal 2016 revenue of $13.0 billion, operating income of $466 million and net income of $242 million, or $1.00 per share. On a non-GAAP basis, fiscal 2017 operating income was $3.9 billion and net income was $2.7 billion, or $9.19 per share, compared to fiscal 2016 operating income of $1.7 billion and net income of $1.4 billion, or $5.79 per share. The company generated $3.4 billion in cash from operations during the 2017 fiscal year and it returned to shareholders $574 million in dividends.

In a worldwide decreasing HDD market, the firm sold 39.3 million devices, up 1% Q/Q - but we are far from the record of 64.7 million units in 1Q15 -, for a total of 81.2EB shipped corresponding to an increase of 9% quarterly.

Revenue for next quarter is expected to be to be approximately $5.1 billion, which would represent 8% Y/Y or 5% Q/Q growth.

Thursday, July 13, 2017

Consumer NAS Market Worth $8.20 Billion by 2025

Globally growing demand for efficient backup systems, speedy data transfer, and cost-effective storage systems are some of the key drivers for the consumer NAS market. Home segment is one of the largest segment in 2016 and is expected to maintain a high growth rate over the forecast period. The deployment of NAS in SMBs is expected to drive the consumer NAS market.

The growth of consumer NAS market is primarily driven due to the low cost of product and easy installation, along with network sharing of data, which enhances the user's accessibility of data among the in-house or office network. Innovative solution offerings such as cloud backup offerings which can be integrated with the consumer NAS system further drives the demand for consumer NAS market. The increase in purchasing power of individuals due to growth in disposable income is expected to fuel the growth of the consumer NAS market. The modern-age population is becoming more tech savvy and acceptable toward technologically advanced products that promote. 
Furthermore, increase in the data such as movies, photos among the individuals which need to be stored are some of the major factors driving the growth of the consumer NAS market.

2-bay design are expected to observe the fastest growth over the next nine years. The home segment of consumer NAS devices will increase in USA and Europe, which is expected to boost the market demand over the forecast period.

Further key findings from the report suggest:
  • The increasing need for storage, data management and data sharing is expected to drive the global market demand of consumer NAS market
  • Business segment emerged as the largest end user segment in 2016 and is estimated to grow by CAGR of 15.4% by 2025
  • Global consumer NAS demand of 4-bay design segment is expected to witness the largest growth over the years
  • The 2-bay in design segment is estimated to grow at a CAGR of 16.9% by 2025
  • The industry in AsiaPac is projected to witness substantial growth over the next decade owing to various developments across major economies. and the regional market is expected to grow at a CAGR of 18.8% from 2016 to 2025
Regional Insights
The presence of large technology companies and significant investments made in the R&D, are some of the major factors driving the growth of the market in the North American region. Currently, North America occupies a significant market share in the overall global market, which is followed by Europe due to the increasing awareness among individuals about the benefits offered by consumer NAS.
Increasing usage NAS by technology start-ups in USA would lead to a significant increase in the demand for the overall US market. Additionally, the region is one of the start-up hubs of the world and it is also expected to boost the market revenue significantly.
The AsiaPac regional market is anticipated to account for a comparatively higher CAGR, owing to the increasing awareness among users regarding the benefits offered by the technology. Growth in the standard of living and increasing disposable income are the driving factors for the growth of the market in this region.

Tuesday, July 11, 2017

Data Protection and Recovery Solution Market at $14.1 Billion by 2025

The global data protection and recovery solution market is expected to reach $14.1 billion by 2025. Market size was estimated at $4.70 billion in 2016 and is expected to gain momentum over the forecast period.

The growing adoption of cloud computing by organizations is leading to increased data management concerns. Data migration to the cloud is resulting in a rise in threats such as data loss, unauthorized data processing, and theft.

Increasing adoption of digital transformation is driving the demand for proficient information management, compliance, and governance. Data constitutes a critical part of digital transformation, therefore, making it even more important to ensure proper management and security.

The growing number of information-based organizations is leading to elevated utilization of business information to improve operational efficiency and innovate products and services, based on evolving customer demands and preferences. All the above mentioned factors are expected to propel the demand for data protection, backup, and recovery solutions.

The existing government regulations, such as the Health Insurance Portability and Accountability Act (HIPAA), Government Paper Elimination Act (GPEA), and Freedom of Information Act (FOIA), are significantly encouraging organizations to implement policies related to data access and protection.

Various nations are planning to implement regulations and impose mandates to ensure data security across different industries. For instance, in 2016, the European Commission introduced the General Data Protection Regulation (GDPR), which would be effective from May 2018. This is anticipated to strengthen and standardized data protection as the rule will compel organizations across Europe to be fully complaint by 2018, thus, boosting sales of security and storage devices across the region.

Further key findings from the report suggest:
  • The email protection segment emerged as the dominant segment and was valued at $1,826.8 million in 2016, owing to the fact that a majority of critical data or information related to a business is stored in emails, which necessitates the use of backup and recovery solutions
  • The SMEs segment is anticipated to emerge as the fastest-growing segment, owing to the increased emphasis laid by SMEs on digitalizing data and the need to protect it
  • The healthcare end-use segment is expected to grow at a CAGR of 16.4% over the next eight years, owing to increasing use of Electronic Health Record (EHR) for maintaining patient information
  • Cloud deployment is expected to foresee the highest growth with a CAGR of 15.1% from 2017 to 2025 as organizations are looking forward to improving the time to market, increasing efficiency of processes, and reducing overall costs
  • North America accounted for a significant market share and was valued at $1,840.8 million in 2016 and $4.64 billion by 2025. However, the AsiaPac region is predicted to grow at highest CAGR of 18.6% from 2017 to 2025, owing to the accelerated adoption of hosted and managed services.

Monday, April 03, 2017

Streaming video via Ethernet? ATTO gives you more with ThunderLink


ATTO’s ThunderLink devices provide more video streams than the competition

Whatever type or quality video stream you need to move, ATTO’s ThunderLink Thunderbolt 2 to 10GbE devices give you more power for streaming over Ethernet networks.

Compared to the competition, ThunderLink devices support an additional 18 NTSC DV25 streams, four additional DVC ProHD streams and one additional stream of uncompressed high-definition video. ThunderLink leaves all other Thunderbolt enabled devices in the dust.
Additionally, ATTO’s ThunderLink devices offer:

•    Advanced Data Streaming (ADS) technology for smoother data transfers
•    ConfigTool for easy management, configuration and monitoring
•    Ability to connect workbooks, mobile workstations and all-in-ones to high-performance storage and networks

Monday, February 27, 2017

Imation Definitively Sold Nexsan

Imation Corp. announced that its transaction with NXSN Acquisition Corp., an affiliate of Spear Point Capital Management LLC, pursuant to which all of the issued and outstanding common stock of Nexsan Corporation was sold to NXSN, has closed.

Imation's Bob Fernander, its interim CEO, and Geoff Barrall, its CTO, will continue to run the Nexsan business as CEO and CTO of Nexsan, respectively, and will have seats on the new Nexsan board.

The transaction is designed to enhance Nexsan's plans for both organic and inorganic growth, as Nexsan will be infused with up to $10 million in fresh private equity capital.

The transaction is a strategic final step in the restructuring plan of Imation, which received 50% of the issued and outstanding common stock of NXSN and a $25 million senior secured convertible promissory note, by providing for third-party investment in the Nexsan business to enhance Nexsan's growth and support its recent product developments.

This investment provides value for Imation stockholders by eliminating Imation's need to make this investment in Nexsan itself while preserving the potential for equity value upside from Nexsan's ongoing development and market penetration.

As a result of the deal, Nexsan plans to make additional investments in sales, marketing and geographic expansion. It is continuing its 100% channel model worldwide, and will increase account coverage, including channel assistance and marketing initiatives in order to drive growth and customer adoption. Over the last year, it has stabilized its revenue and is expected to continue to grow following the closing of the transaction.

Quantum: Preliminary 3FQ17 Results - $133 million revenue expected, above high end of guidance

Quantum Corp. announced preliminary results for the fiscal third quarter 2017, ended December 31, 2016 that were above the high end of the previously provided guidance range for both total revenue and profitability.

The company currently expects:
 
    •    Total revenue of approximately $133 million, up from $128 million in the fiscal third quarter 2016. For the first three quarters of fiscal 2017, total revenue grew 8% over the same period in fiscal 2016.


    •    Scale-out tiered storage revenue (previously referred to as scale-out storage revenue) of approximately $40 million, an increase of 12% and the 22nd consecutive quarter of year-over-year growth. Revenue was up 26% year ro date over the first nine months of fiscal 2016.


    •    Total data protection revenue of approximately $83 million, up $2 million.


    •    GAAP operating income of approximately $8 million to $9 million and non-GAAP operating income of $9 million to $10 million - an increase of $6 million to $7 million and $2 million to $3 million, respectively.


    •    GAAP net income of approximately $6 million to $7 million, or $0.02 per diluted share, and non-GAAP net income of $7 million to $8 million, or $0.03 per diluted share - an increase of $0.02 per diluted share and $0.01 per diluted share, respectively.


"We're very pleased with our continued strong performance this fiscal year," said Jon Gacek, president and CEO. "For the third straight quarter, we increased total revenue and profit year-over-year, with growth in both scale-out tiered storage and data protection. In addition, comparing the first nine months of fiscal 2017 to the same period a year earlier, we not only grew scale-out tiered storage 26% but also increased branded data protection revenue 7% and improved our GAAP and non-GAAP bottom-line results by approximately $28 million and $23 million, respectively. We ended the quarter with excellent momentum across all product categories, and we start our fiscal fourth quarter with a strong backlog and solid funnel. Therefore, we feel very confident in our ability to deliver year-over-year revenue growth again in the current quarter and exceed our annual revenue and profitability guidance for fiscal 2017."

Monday, January 30, 2017

Quantum: Fiscal 3Q17 Financial Results

Quantum Corp. reported results for the fiscal third quarter 2017 ended Dec. 31, 2016 (all comparisons are relative to the fiscal third quarter 2016 unless otherwise stated):

    •    Total revenue was $133.5 million, an increase of $5.4 million. For the first three quarters of fiscal 2017, total revenue was up 8% over the same period in fiscal 2016.
    •    Branded revenue grew to $115.2 million, up $11.5 million, or 11%.
    •    Scale-out tiered storage revenue increased to $39.8 million, up $4.1 million and contributing to a 26% Y/Y growth rate.
    •    Total data protection revenue grew 3% to $83.1 million, consisting of $22.9 million in disk backup systems revenue (up 17%), $44.8 million in tape automation revenue (down 13% overall, with OEM revenue down 42% and branded revenue down 3%) and $15.4 million in devices and media revenue (up 51%).
    •    Royalty revenue was $10.5 million, a decrease of $750,000.
    •    GAAP operating income was $7.3 million, and non-GAAP operating income was $8.8 million, an improvement of $5.8 million and $2.1 million, respectively.
    •    GAAP net income was $5.0 million, or $0.02 per diluted share, and non-GAAP net income was $6.6 million, or $0.02 per diluted share. This represented an improvement of $5.8 million and $1.8 million, respectively.


"Following up on our revenue growth and improved profitability in the first half of the fiscal year, we again delivered solid results in the December quarter," said Jon Gacek, president and CEO. "On a year-over-year basis, we generated our 22nd consecutive quarter of scale-out tiered storage revenue growth and increased total revenue, data protection sales and overall profitability for the third straight quarter. As a result of our strong execution and the leverage our financial model provides, year-to-date GAAP and non-GAAP net income also improved $29 million and $24 million, respectively, on a total revenue increase of $29 million.
"In the fourth quarter, our focus is to continue building on our momentum by providing customers with the optimal combination of high performance, low-cost capacity and ready access to meet their increasing data management demands and achieve their business or mission objectives. We are well-positioned to capitalize on the opportunities across our target markets, having expanded our product offerings, sales capabilities and ecosystem partnerships over the past nine months. As a result, we are raising our revenue and profitability guidance for fiscal 2017."


Guidance for the fiscal fourth quarter:
 
    •    Total revenue of $120 million to $125 million.
    •    GAAP and non-GAAP gross margin of 41-43%.
    •    GAAP and non-GAAP operating expenses of $49 million to $50 million and $47 million to $48 million, respectively.
    •    Interest expense of $2.4 million and taxes of $400,000.
    •    GAAP loss per share of $0.01 and non-GAAP earnings per share of $0.00.

For its fiscal 2017 guidance, the company now expects:
    •    Total revenue of $505 million to $510 million, an increase over its initial guidance.
    •    Royalty revenue of at least $35 million.
    •    GAAP and non-GAAP gross margin of approximately 42%.
    •    GAAP and non-GAAP operating expense of approximately $201 million and approximately $192 million, respectively.
    •    Interest expense of $8.0 million and taxes of approximately $1.5 million.
    •    GAAP earnings per share of $0.01 to $0.02 and non-GAAP earnings per share of $0.04 to $0.05, respectively - an increase over its initial guidance on both a GAAP and non-GAAP basis.


Fiscal Third Quarter 2017 Business Highlights
 
    •    The firm concluded definitive agreements with PNC Bank and TCW Direct Lending on a $170 million financing package. The agreement with PNC includes an $80 million revolving credit facility and an additional $20 million credit line available under an accordion feature. The agreement with TCW provides for a $50 million term loan with TCW that was drawn upon closing and a $20 million delayed draw term loan available through Dec. 31, 2017.
    •    The company announced StorNext 5.4, the latest version of its StorNext file system and data management software. It enables customers to integrate their existing public cloud storage accounts and/or third-party, object storage-based private clouds as tiers in a StorNext-managed environment. As a result, users can get all the benefits of StorNext while protecting prior investments and reducing the cost and complexity of cloud administration. Another feature provides the ability to embed asset manager, data management and data sharing applications in StorNext-powered appliances, thereby reducing the time, cost and complexity of deploying and maintaining applications.
    •    The firm introduced a new Scalar storage platform optimized for storing and managing the increasing volumes of unstructured data. The first new products based on this platform are the Scalar i6 and Scalar i3 tape libraries and the StorNext AEL6 purpose-built rich media archive appliance. The new Scalar platform offers benefits including storage density - twice that of earlier-generation rack-mounted libraries - which enables organizations of all sizes to reduce their data center footprint and reduce their storage costs.
    •    Notable scale-out tiered storage customer wins included large deals with several broadcasters and post-production companies, two police departments seeking video surveillance solutions and a range of organizations for help managing their growing unstructured data archives. These organizations included a government agency, an automotive electronics supplier that is one of the leaders in self-driving technology, an international weather forecasting agency and a medical research institute.
    •    In data protection, the company had a series of DXi6900 product family wins, including million dollar-plus deals at an Asian taxation department, a major European insurance company and two big banks, as well as other large deals at a state-owned energy provider in Asia and an U.S. telecom company

Thursday, December 08, 2016

Information Insight: The growing importance of analytics to business resiliency

Data is the DNA of the modern organization and found in the cloud, behind four walls and at the network’s edge. Data is also growing at a greater speed than ever before. This unique combination of growing data complexity, sprawl and volume is forcing IT to rethink traditional approaches to backup and recovery.
No longer can organizations afford to approach such practices without substantial insight into both how they are approaching these operations (load, clients, resources, service levels) and insight into the information itself. Now more than ever, analytics is necessary to ensure business resiliency. 

There are four primary types of analysis that can be applied to backup and recovery:  environmental, retrospective, predictive, and prescriptive analysis.  Each provides a window into the overall network.  And when combined, they allow enterprises to be proactive in prioritizing data, predicting resource utilization, mitigating risk and optimizing infrastructure in order to reduce the burden on resources and manage the costs.  This combination delivers on the promise of 'information insight'.

Today’s backup and recovery responsibility has to extend beyond the traditional four walls of the corporate headquarters to support emerging cloud, mobile and virtual platforms.  As such, organizations are faced with needing to better understand the data, where it is located and the value that it provides to the organization.  The understanding environmental analysis delivers allows IT to define how it is going to manage, backup and deliver the information in a transparent manner that supports its overall business objectives.

Retrospective analytics allow teams to gain insight into the health and success of the backup process, resource utilization, as well as areas of optimization. Having deep knowledge of past backup process and infrastructure utilization can ensure that the most critical applications gain access and priority to the resources needed to complete backups on time, and non-disruptively.

This form of analysis requires greater insight into information – what type of data it is and the relative importance it has to the organization.  With this added insight, organizations are able to automatically classify their data, define what is being held, determine if it is critical to the business and set guidelines in terms of how and when it is backed up.  IT executives are increasingly leveraging this form of analytics to recommend how to best optimize the backup system to take advantage of additional resource and capacity – to improve not only the protection of the data but also the long-term retention for compliance. 

Retrospective analytics help align organization’s three key stakeholders of backup and recovery, including the backup administrator, the infrastructure operations team and C-level executives.  It enables them to gain confidence into the organization’s ability to meet service level expectations.  Having defensible history of operational success enables enterprises to meet compliance and governance needs in their particular industry or vertical market.

Predictive analytics is growing in importance for backup and recovery.  This approach allows organizations to predict future resource needs and potential resource conflicts based on historical data patterns. Armed with this knowledge, IT teams can proactively address issues before they can occur and plan for future needs such as additional capacity purchase in a proactive manner.

With predictive analytics, organizations can ease the operational demands of backup and recovery management. Enabling administrators to predict when their systems will run out of storage capacity is a great value for the team from a planning perspective. Additionally, the data growth patterns can also highlight potential conflicts and resource contention that can lead to increased backup window issues. Providing knowledge about these potential future problems before it can actually occur is fairly transformational for the IT organizations.

With greater insights obtained, organizations can leverage their existing backup investment as well as plan for future capacity and infrastructure needs.  It can also serve as a critical component in the industry’s rapid movement toward automation.  Automation decreases the effort within the backup and recovery operation and ensures protection for all devices under management, by automatically applying protection policies and provisioning backup resources. This automation saves time, money, and management.

Prescriptive analytics is an emerging need for backup and recovery that enable IT leaders to get the most out of the backup gears that are already deployed, streamline key processes and improve time to remediation.

For IT operations teams responsible for managing the overall infrastructure, this form of analytics provide visual cues and steps to remediation when a problem occurs. More importantly, it creates a common vernacular between backup teams and IT operations teams during the troubleshooting process. Further, they provide visibility into the error conditions on backup jobs and issues with physical resources such as tape libraries, drives and disk systems to precisely troubleshoot what has gone wrong and how to fix it.

In summary, as organizations adjust to the reality of a changing IT world — with increasing volume, variety, and velocity of information sources, which have expanded beyond the four corporate walls — they must also expand their information management practices to keep pace with the increasing demands.  In short, they need to move from defense to offense. 

A critical first step to that end is leveraging analytics to optimize backup and recovery – to create a strategy that is just as agile as their current and future environments. Analytics provide a snapshot into an organization’s overall data strategy. Analytics applied to the network provide the organization with greater insight into the data that is collected, stored, and managed.  And analytics improve operational efficiencies and mitigate risk by identifying and optimizing the managed data, according to corporate information management requirements.

In today’s highly dynamic, diverse, and complex data environments, approaching backup and recovery with the same strategies that worked in the past is not only ill-advised, it can also create significant risk – to your organization or even to your career. Today, organizations need information insight, and analytics is the first and most critical step to meeting evolving business resiliency requirements.