Feeds

WD makes more profit than expected

Profits still way down on last year, though

Internet Security Threat Report 2014

Number 2 disk manufacturer Western Digital saw revenues down 25 per cent year-on-year but still made a profit in its third fiscal 2009 quarter (Q3 fy09). This was 82 per cent less than a year ago, but still exceeded Wall Street expectations.

The company had revenues of $1.6bn in Q3 fy09 ($2.11bn in Q3 fy08) and net income of $50m ($0.22/share) compared with $280m ($1.26/share) a year ago. Net income was affected by $14m charges associated with the SiliconSystems acquisition and $4m of restructuring charges. The company shipped 31.6m disk drives, down 8 per cent y-on-y and 11 per cent sequentially. This compares to Seagate shipping 38.4m drives in its first calendar 2009 quarter, which was 10 per cent down y-o-y and 5 per cent down sequentially.

WD's president and CEO, John Coyne, said: "We managed our market segment participation, product mix and costs to optimize our returns in a challenging environment. We have taken a series of actions to resize and restructure the business to remain profitable and cash flow positive at a $1.5 billion quarterly revenue level and the effects of these actions are already showing up in our results."

He noted growing shipments of WD's 2TB hard drive and branded goods. Looking ahead, if WD can sustain quarterly revenues above $1.5bn it will continue to be profitable, which contrasts with Seagate hoping for a return to profitability in 2010. ®

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

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.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.