Feeds

WD scraps money raising scheme

All quiet on the Western front

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Western Digital, the hard drive maker, has withdrawn plans to raise more money through the issue of new shares, because it thinks it can get by without it.

The company points to 'improved fundamentals' in its business; in other words, it is generating enough cash to fund its needs - it's made a profit five quarters in a row now from its hard drive business - and it reckons that this will continue.

WD could have raised up to $167.7m from registered but unsold shares. By ensuring these don't enter circulation, WD ensures that a: existing shareholders don't see their stakes diluted, and b: that there is no nasty surprise to the share price at a difficult time for tech stocks.

WD yesterday reported Q2 net income of $9.2m before -non-recurring investment gains, and $12m when these are included. The HDD business generated $15.3m in operating income for the quarter ended 28 December, 2001.

Revenue was $575m on unit shipments of 7.7m (Q2: 2001$562m on unit shipments of 6.1m, and a net loss before non-recurring items of $7m).

WD has completed the purchase of Fujitsu's HDD manufacturing facility in Thailand, bought presumably for a knockdown price. The exit of Fujitsu from the commodity hard drive business will see WD's market share increase, and should translate into less pressure on industry margins.

Intelligent flash storage arrays

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
How to simplify SSL certificate management
Simple steps to take control of SSL certificates across the enterprise, and recommendations centralizing certificate management throughout their lifecycle.