Feeds

Western Digital profits down despite revenue rise

Declining drive prices ate into income

Eight steps to building an HP BladeSystem

Revenues for disk drive industry leader Western Digital's third fiscal 2013 quarter rose 24 per cent to $3.8 billion – compared to $3 billion a year ago – but profits fell 19 per cent. It's a hard life in the disk drive business.

The previous quarter's revenues were $3.8 billion too; no change there, then. Third-quarter profits of $391 million compare poorly to the year-ago quarter's $483 million, but Thai-flood-induced disk price rises are now long gone.

Profits were up sequentially; the second fiscal 2013 quarter's profits were $335 million.

"Overall industry demand was in line with our expectations. In our business, we saw strength in enterprise, stable performance in client and consumer electronics, and some anticipated seasonal softness in Branded Products," WD CEO and president Stephen Milligan said in a statement.

WD Revenues to Q3 fy2013

WD shipped 60.2 million drives in the quarter. By comparison, it shipped 59.2 million in the second quarter and 44.2 million in the third quarter of fiscal 2012, back before WD acquired HGST.

We charted the rise and fall in WD's average selling price for its hard drives and here's the graph:

WD ASP

One thing that will affect this is that the average capacity of 3.5-inch and 2.5-inch disk drives is trending up. However we'd, need to know the split between 3.5-inch drive numbers and 2.5-inch drive numbers to understand this effect better, and we don't have that data.

Interestingly, the ASP in the year-ago quarter was higher, $68.67 compared to the latest quarter's $62.52. That would help to explain a profits drop. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.