Western Digital Corp (WDC) posted first quarter earnings for fiscal year 2011 on October 19th 2010. Earnings were $0.81 beating analysts’ expectations by 3.70%.
WDC announced quarter one FY2011 revenue of $2.4 Billion, hard-drive shipments of 50.7 million and net income of $197 Million compared to quarter one FY2010 revenue of $2.2 Billion, 44.1 million shipping hard-drives, and net income of $288 Million.
President and CEO John Coyne stated that even with competitive pricing in the industry, WDC was capable of remaining profitable, grew revenues and shipments, and generated $390 Million in cash from operations.
UASBIG Tech/Telecomm analysts are interested in WDC ability to continue competing with its main competitor Seagate. With recent news regarding Seagate’s possible privatization, WDC is left in a unique place within the industry. WDC also faces significant competition from other memory product producers, producing non magnetic memory products that offer high sustainability and performance.