Hitachi: Fiscal 2Q08 Financial Results

We publish here only the results of Hitachi Ltd. for its storage activities during its second fiscal quarter (2Q08) ending in September 30, 2008.

Note that the HDD business continues to be profitable, as for the two former quarters thanks to cost reductions centered on media and heads, but with a small 6% year-to-year growth in units and only 2% in US dollar revenue. Shipment of 2.5 notebook units increased 17% and 40% for enterprise devices, but Hitachi GST continues to be weak in desktop HDDs (-9%).

Hitachi continues to be a strong performer in optical disc drives with 22.5 million units sold in 2Q08 (+15%).

Storage solutions revenue (HDS and Japan)

(in ¥ billions)	2Q07	2Q08	6 mo. 07	6 mo. 08
Revenues	91.0	93.0	174.0	178.0
Growth from previous year		*+2%*		+2%

(Source: Hitachi Ltd.)

Hard disk drives (Hitachi GST) revenue in ¥ billions

(in ¥ billions)	2Q07	2Q08
Revenues	169.4	158.1
*Growth from previous year*		*-7%*

(Source: Hitachi Ltd.)

Hard disk drives (Hitachi GST) revenue in U.S. $ millions

(in U.S. $ millions)	2Q07	2Q08
Revenues	1,450	1,477
*Growth from previous year*		*+2%*
Operating income (loss)	(58)	85

(Source: Hitachi Ltd.)

Hard disk drives (Hitachi GST)
in number of units

(in thousands)	2Q07	2Q08	*Growth*
Notebook, CE 2.5-inch	12,700	14,800	*+17%*
Desktop, CE 3.5-inch	10,400	9,400	-10%
Enterprise	1,000	1,400	+40%
Emerging (automotive, etc)	180	210	+17%
TOTAL	24,300	25,800	+6%