This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
Zacks Rank Education - Learn more about the Zacks Rank
Zacks Rank Home - All Zacks Rank resources in one place
Zacks Premium - The only way to get access to the Zacks Rank
This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at firstname.lastname@example.org or call 800-767-3771 ext. 9339.
Technology research firm Gartner (IT - Snapshot Report) recently released its third quarter 2011 server shipment results. Server shipments in the reported quarter grew 7.2% on a year-over-year basis, while revenues generated by server shipments increased 5.2% from the year-ago quarter.
The industry witnessed worldwide growth, as most geographies,with the exception of Western Europeposted both shipment and revenue growth. Western Europewitnessed a revenue decline of 4.9% during the period. The Asia/Pacific saw the highest shipment growth, with revenues increasing 23.9%. Eastern Europe posted the highest revenue growth of 27.4% during the period.
Within the server segment, the x86 servers expanded considerably and reported unit and revenue growth of 7.6% and 9.3%, respectively. However, x86 server growth was relatively soft in Western Europe and the United States due to comparatively strong third quarter 2010 results.
This apart, the RISC/Itanium Worldwide Unix server shipments reported a modest decline of 6.8%, while vendor revenue increased 3.5% compared with the same quarter last year. The ‘other’ CPU category, which primarily includes mainframes, also witnessed a decline of 6.9%.
With respect to the individual server manufacturers, three of the top five global manufacturers reported year-over-year revenue growth, while server segment revenue of Hewlett-Packard (HPQ - Analyst Report) and Oracle Inc (ORCL - Analyst Report) declined on a year-over-year basis.
Based on the total revenue generated by the server segment, International Business Machines (IBM - Analyst Report) emerged as the leader with 29.7% market share, with revenue growing 3.5% year over year. Hewlett-Packard was placed in the second position with 29.3% market share, a decline of 3.6% from the year-ago quarter. Dell Inc. (DELL - Analyst Report) and Oracle were ranked third and fourth with 14.7% and 5.9% market share, respectively.
While HP retained the top position in terms of total shipments with 29.2% market share, followed by Dell and IBM with 21.8% and 12.1% market share, respectively. HP’s worldwide server shipment share of 29.2% represented a 3.1% drop from the same quarter in 2010.
In terms of product category, blade server shipments rose 3.3% and revenues spiked 7.6% in the quarter. The rack-optimised form factor climbed 8.2% in shipments and 6.3% in revenue during the third quarter of 2011.
We believe that the demand for new servers in the upcoming fourth quarter will remain subdued due to lower demand, as a result of lower tech spending and the European debt crisis.
Please login to Zacks.com or register to post a comment.