Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Industrials

Wednesday, July 30, 2008

Hitachi Delivers High-Capacity, Low-Power Digital Video Storage for the Tera Era

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SAN JOSE, Calif., Jul 30, 2008 (BUSINESS WIRE) ----Hitachi Global Storage Technologies (Hitachi) today introduced two new CinemaStar(TM) hard drives optimized for use in digital video recorders (DVRs) and set-top boxes. The CinemaStar(TM) 7K1000.B is available in a broad range of capacities up to one terabyte (1TB) and the CinemaStar 5K320 delivers up to 320GB of capacity and incorporates innovative Hitachi CoolSpin(TM) technology.

CoolSpin drives use a motor speed optimized for low power and acoustics, enabling Hitachi to deliver the industry's quietest, most energy-efficient 3.5-inch hard drives. Hitachi CoolSpin enables a new generation of DVRs and set-top boxes that store more hours of video, run more quietly and use less power.

The new Hitachi CinemaStar drives include the following:

-- Drive mechanics designed for continuous 24x7 operation

-- Silent-seek acoustics for nearly inaudible operation

-- Three low-power idle modes for best-in-class power utilization and heat emission

-- Smart Command Transport (SCT) and SmoothStream technology optimizes the drive for uninterrupted audio and video streaming

-- Expanded temperature range to enable fan-free DVR designs

-- Ramp load/unload design to increase shock protection and power savings

-- Thermal monitoring and fly-height control to enhance drive reliability during lengthy video encoding/decoding sessions

-- Optional Bulk Data Encryption (BDE) for increased protection against data loss

-- Proven perpendicular magnetic recording (PMR) technology helps to ensure maximum stability, reliability and data integrity

CinemaStar 7K1000.B

The CinemaStar 7K1000.B is based on the recently-introduced, second-generation Hitachi 7,200 RPM terabyte hard drive family. The new 3.5-inch drives, available in capacities ranging from 160GB to 1TB, leverage seven generations of power management technology to deliver best-in-class low power and thermal emissions. Hitachi used HiVERT technology, first pioneered on 2.5-inch Travelstar drives, to increase the power efficiency characteristics of the drive. The CinemaStar 7K1000.B enables device manufacturers to develop DVRs that run cooler and require less power, which ultimately leads to longer product life.

All CinemaStar products are enhanced with silent-seek acoustics to deliver bedroom-quiet operation, and a Hitachi patented load/unload ramp mechanism that helps prevent disk wear and protects the disk during non-operation. The CinemaStar 7K1000.B is also built using the industry's most reliable perpendicular magnetic recording (PMR) technology for maximum stability, reliability and data integrity.

1TB CinemaStar hard drives can hold up to 247 hours of MPEG-4 encoded high definition video(1) and can support more than 10 simultaneous data streams.

CinemaStar 5K320

The CinemaStar 5K320 provides up to 320GB capacity and features innovative CoolSpin technology to deliver a new level of power efficiency and quiet operation for digital video applications. Key to CoolSpin technology is an optimization of motor speed to provide an ideal balance of performance, power utilization and acoustics.

Both CinemaStar drives announced today combine a targeted 1.2M hour Mean Time Between Failure (MTBF)(3) and extended operating temperature range to maximize DVR lifespan. At 3.1W idle power, the CinemaStar 5K320 helps meet low power compliance targets for consumer electronics devices and allow consumers to save on their energy costs.

The digital video recorder market continues to experience robust growth. IDC estimates that shipments of hard drives for personal video recording applications will grow at a 14% annual growth rate between 2007-2012(2).

"Hitachi has been making dramatic improvements in power savings generation to generation and our CoolSpin product line in particular, sets new standards for power-efficient audio/visual hard drives," said Larry Swezey, director, Consumer and Commercial HDD Marketing and Strategy, Hitachi Global Storage Technologies. "The Hitachi CinemaStar drives are designed to excel in DVR and set-top box applications, where cool operation, quiet acoustics and overall power efficiency are of critical importance."

Availability

The CinemaStar 7K1000.B will begin shipping to customers worldwide in August and the CinemaStar 5K320 is expected to ship in September, 2008.

A Hitachi white paper and more details about the Tera Era can be found at www.hitachigst.com/TeraEra.

About Hitachi Global Storage Technologies

Hitachi Global Storage Technologies, headquartered in San Jose, CA, develops advanced hard disk drives to store and preserve the world's valued data. Founded by the pioneers of hard drives, Hitachi GST enables users to fully engage in the digital lifestyle by providing high-value, high-capacity storage in formats suitable for the office, in the home or on the road. With vertically integrated research, design and manufacturing capabilities, Hitachi GST delivers leadership technology and quality to its global customer base.

With approximately 33,000 employees worldwide, Hitachi GST offers a comprehensive range of hard drive products for desktop computers, high-performance storage systems and servers, notebooks and consumer devices. For more information, please visit the company's website at www.hitachigst.com.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE:HIT) (TOKYO:6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 390,000 employees worldwide. Fiscal 2007 (ended March 31, 2008) consolidated revenues totaled 11,226 billion yen ($112.2 billion). The company offers a wide range of systems, products and services in market sectors including information systems, electronic devices, power and industrial systems, consumer products, logistics, materials and financial services. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

One GB is equal to one billion bytes. Accessible capacity may be less.

Hitachi Global Storage Technologies' trademarks are authorized for use in countries and jurisdictions in which Hitachi Global Storage Technologies has the right to use, market and advertise the brands. The Travelstar trademark is authorized for use in the Americas, EMEA, and the following Asia-Pacific countries and jurisdictions: Australia, Hong Kong, Japan, New Zealand, South Korea and Taiwan. Hitachi Global Storage Technologies shall not be liable to third parties for unauthorized use of its trademarks.

(1) Assumes the high definition video is encoded at 9 megabits per second. Actual storage may vary depending on the compression rate applied. Capacities may not be combined.

(2) IDC, Worldwide Hard Disk Drive 2008-2012 Forecast and Analysis: Shrugging Off Storage Technology Challengers, Doc. #212331, May 2008.

(3) MTBF estimate based on hard drive usage in a typical consumer electronics/surveillance product environment. For more details, please contact your local Hitachi sales representative.

SOURCE: Hitachi Global Storage Technologies

Hitachi Global Storage Technologies Jim Pascoe, 408-717-7924 james.pascoe@hitachigst.com

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