Thursday, January 27, 2011

Western Digital Q2 Earnings

Western Digital reported Q2 earnings with total revenue of $2.475 billion and a net income of $225 million, or 96 cents per share, beating analysts’ estimates by 38 cents per share. Western Digital, which competes with larger rival Seagate Technology, said hard-drive unit shipments in the quarter rose 5 percent to 52.2 million. Chief Executive John Coyne said the company’s results reflected “solid execution and an improvement in hard drive industry conditions compared with the prior two quarters.” However, the company warned that tablets which use flash memory rather than hard-drive storage - would reduce growth in shipments of low-end laptops by 10-20 percent over the next few quarters. Western Digital expects revenue to range from $2.2 billion to $2.25 million in the third quarter.

Vladimir Pantilei,Junior Technology Analyst

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