Feeds

Western Digital profits down despite revenue rise

Declining drive prices ate into income

3 Big data security analytics techniques

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. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.