Feeds

Western Digital profits down despite revenue rise

Declining drive prices ate into income

The essential guide to IT transformation

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. ®

Next gen security for virtualised datacentres

More from The Register

next story
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

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.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
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?