Irvine-based Western Digital Corp. is focusing on three key initiatives to broaden its portfolio and meet the changing needs of customers, President Steve Milligan told investors in a recent conference call.
Topping the list: developing innovative and cost-effective storage products, including hybrid drives for thin and light mobile devices; corporate drives for the public and private cloud markets; and user-friendly systems for consumers cloud applications and connected lifestyles.
“We have received very positive customer feedback on our latest differentiated solutions to address these trends,” said Milligan, who will replace outgoing Chief Executive John Coyne in January.
His comments came during a call focusing primarily on the company’s recent financial results, as well as new guidance for the current quarter.
Western Digital’s shares fell more than 6% after the disk-drive maker issued profit and revenue projections for the current below analysts’ consensus expectations.
The company said it expects an adjusted profit of $415 million to $457 million in the December quarter. Industry analysts had forecasted $600 million on average prior to the latest guidance.
The company now expects revenue of $3.55 billion to $3.7 billion in the current quarter. Analysts on average have been forecasting $4.1 billion in quarterly revenue. Milligan blamed the disappointing guidance on global economic strife, product transitions to the Windows 8 operating system and other factors. Hard-disk drives store and allow access to data. Western Digital’s disk drives go into computers, external storage devices, corporate networks and consumer electronics such as DVR players.
Genexis Contract
Mindspeed Technologies Inc. in Newport Beach will supply Netherlands-based Genexis with communication chips for its home networking devices.
The line of chips are geared for the broadband market and touted to support higher speeds and use less power than industry standards. They can be used in a variety of secure systems, including gateways, home routers and set-top boxes.
Mindspeed makes chips for routers, switches and other networking gear. Its fiscal 2011 revenue totaled $162 million.
The company is undergoing a restructuring plan as it integrates U.K.-based chipmaker Picochip Ltd. under its operations. Mindspeed cut about 25 employees in January after buying Picochip for $51.8 million and up to $25 million in additional benchmark payments.
The company plans to cut more than 80 jobs in research and development, sales and administrative operations. That will save $13 million per year and shave the companywide work force to about 500.
Mindspeed plans to raise $32 million through the sale of convertible senior notes. It also has downsized its corporate headquarters as part of the restructuring.
Mindspeed has been undergoing a strategic shift to exploit its information technology and research and development legacies by developing systems for manufacturers and infrastructure. The company built its name making networking chips used in communications equipment and devices.
GE Tour
General Electric Co. touted its latest in-roads in natural gas technology at a recent tour in Huntington Beach.
Hilton Waterfront Beach Resort was the third stop for GE’s FlexEfficiency 60 Truck Tour, following the September launch of an initiative to boost wind, solar and other renewable energy sources.
GE recently announced it has nearly $1.2 billion in contracts to supply 19 natural gas turbines as part of its new FlexEfficiency 60 Portfolio of power generation products set to be implemented into the nation’s power grid. The goal is to retire aging coal-fired power plants and diversify global energy sources.
The portfolio consists of gas and steam turbines, generators and plant controls.
The truck, which will visit 25 cities on its North American tour, features interactive exhibits and demonstrations.Â
“We believe that the FlexEfficiency 60 Portfolio represents the cornerstone of America’s energy future, and can help California build a cleaner and sustainable energy infrastructure,” said Paul Browning, chief executive of thermal products for GE Power & Water.
Natural gas production and infrastructure has moved into the national spotlight during the presidential election as each candidate has vowed to increase capacity if elected.
Seal Beach-based Clean Energy Fuels Corp. is leading the movement. The company is building what it calls “America’s Natural Gas Highway.”
Major transportation arteries in California, Texas and the Midwest are expected to have natural gas stations spread out every 250 miles or so when the multiyear project concludes.
The company is targeting the largest segment of the market: Heavy-duty haulers that consume some $30 billion of fuel annually.
That dwarfs the public sector and waste management industries combined.
Clean Energy is the largest builder and operator of natural gas stations in the U.S., with sales of nearly $293 million in 2011.
