Mr. Atsuo Kobayashi
Deputy General Manager
Data Storage & Thin Film Technology Components Business Group
I'm Atsuo Kobayashi, Deputy General Manager of TDK's HDD head business. I would like to briefly report on HDD head results for the first quarter of fiscal 2007 and the outlook for the interim period and fiscal 2007.
Sales in the first quarter were ¥73.8 billion. For the first half of the year, we are now forecasting sales of ¥147.8 billion, compared with our previous forecast of ¥141.5 billion. For the second half, we are forecasting sales of ¥141.2 billion, the same as before. This means we are now forecasting sales of ¥289.0 billion for the full year, compared with our previous forecast of ¥282.7 billion.
Next, I'd like to look at HDD head demand and TDK's market share. In the previous fiscal year, HDD demand was 380 million units, the average number of heads per HDD was 2.7 and HGA demand was 1,036 million units. TDK had a market share of 36%. Our forecasts for fiscal 2007 in respect of HDD head demand and the average number of heads per HDD are unchanged-435 million units and 2.8, respectively. Our forecast for HGA demand is also as previously forecast, that is, 1,230 million units. However, we are projecting a 1 point drop in market share from our previous forecast of 32% to 31% partly because we failed to achieve our first-quarter shipment target.
In regards to sales volumes of HDD heads, assuming the result for the first quarter of fiscal 2006 was 100, actual sales in the first quarter of fiscal 2007 were 111. While higher year on year, this was slightly less than our plan announced on April 27. For the second, third and fourth quarters, we are currently projecting 121, 125 and 120, respectively.
Our forecast for the second half is unchanged at this point. While demand has not declined in the fourth quarter from the third quarter in the last two years, we are looking conservatively at fourth-quarter demand this fiscal year and therefore projecting only 120. As we head toward the second half, inquiries from existing customers as well as captive head makers, a sector we are working to develop, have picked up. So, while we have lowered our projection for market share to 31%, 32% isn't out of the question.
The final subject I'd like to cover is our schedule for launching new products. This slide shows the launch schedule for new products for 2.5-inch and 3.5-inch HDDs. There has been no change to our schedule from the previous earnings release conference. However, the launch of 100GB/P and 120GB/P products for 2.5-inch HDDs is expected to fall slightly behind schedule, partly reflecting the relatively late launch of 80GB/P products.
That concludes my presentation. Thank you.