Expanded development in both organized and unstructured information is driving interest for information storage. The worldwide information data storage business sector is expected to climb at an CAGR of 7.83% from 2012 to 2016. In this article, I will discuss two organizations which is set to have a larger share of this market. Keeping in mind the end goal, these organizations are improving their portfolios through propelling new product launches and acquisitions.
Improving top line with procurement and unveiling new products
Sandisk (SNDK) will aquire Smart Storage System, a venture for solid state drive, or SSD, deployed on Serial advance technology attachment (SATA), and SAS storage convention, for around $307 million. Smart Storage System's acquisition will help Sandisk to open doors in the $1.6 billion market of SATA products and will extend its SAS portfolio. This acquisition also empowers SanDisk to establish its authority position in the SSD market. Further, this obtaining will reinforce Sandisk's "NAND streak memory" which will enhance its execution and unwavering quality.
Sandisk has attained the qualification of being eligible SSD supplier and with shipment of 19 Nanometer MLC-based undertaking SATA SSDs, equipped for supporting 10 full drives writes in a day. It endeavors SATA SSDs to be a solid donor to the revenue in the current fiscal. To continue increasing its earnings and margins, it introduced the world's fastest 64GB micro SDXC card mainly for 4G smartphones, tablets, and action cameras. The growth of high-end smartphones, which require high memory bandwidth, will help SanDisk grow further.
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Strongest quarter till date
SanDisk reported strong year-over-year revenue growth of 13% to $1.51 billion in the first quarter. Revenues from commercial and retail channels were strong, aided by higher mobile embedded and SSD sales. This was the strongest first quarter to date for SanDisk Q1 revenue and record Q1 non-GAAP operating margin of 31.5%.
Analysts estimate the revenue to be around $6.65 billion for the current fiscal and is expected to reach $7.7 billion is next fiscal year. EPS is expected to reach $1.62 in the next quarter growth by $0.12 from the current quarter.
Acquisition generating growth opportunities For Fusion-io
To enhance its equipment business, Fusion-io (FIO) acquired Nexgen Storage that pioneers in storage devices, for $119 million. Nexgen drive enabled with Fusion ioMemory will serve small and medium-size businesses. The mix of both the organization's products on x86 servers will make hybrid storage that will offer flash storage devices at a lower cost.
This bundled package will boost the system's data writing and reading capacity by up to 250 times, compared to a SSD-based system, and enhance system performance almost by 3 times. It is looking to attract new customers as well as retain its existing ones by integrating new features into its storage drives. The company expects to deliver year-over-year revenue growth of 21.4% to $525 million in the current fiscal, compared to $436.3 million in the fiscal year ended on June 2013.
Further
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