Feeds

WD makes more profit than expected

Profits still way down on last year, though

Choosing a cloud hosting partner with confidence

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. ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'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
Bitcasa bins $10-a-month Infinite storage offer
Firm cites 'low demand' plus 'abusers'
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Pssst. Want to buy a timeshare in the clouds?
The Google dilemma — controller or spreader of knowledge?
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
prev story

Whitepapers

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.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.