Orange County Business Journal

Western Digital’s June Quarter Beats Wall Street

Chris Casacchia Wednesday, July 30, 2014

Irvine-based storage products maker Western Digital Corp. on Wednesday reported revenue and adjusted profits in the June quarter that beat Wall Street expectations.

The world’s largest disk drive maker posted sales of $3.7 billion in the recently ended quarter, down about 2% from a year ago.

Analysts had forecast revenue of $3.59 billion.

Net income topped $445 million, down 6.7% from a year earlier and above Wall Street estimates of $409 million.

The company said it sold 63.1 million hard-drive units compared to 59.9 million units shipped a year ago.

Hard drives use spinning disks to store data, unlike the company’s growing line of solid-state drives, which use chips.

Western Digital’s disk drives go into computers, external storage devices, corporate networks and consumer electronics, such as laptops.

Chief Executive Steve Milligan credited the strong performance to surging demand in storage products geared for the gaming market, better than expected demand in notebook PCs, and growth in its corporate business.

For its fiscal year ending in June, the company reported sales of $15.1 billion, down about 2% from the same period a year earlier.

Analysts had forecast sales of about $15 billion.

Net income hit $2 billion, down 4.7% from the same period last year.

Wall Street was expecting an adjusted profit of about $1.87 billion.

Investors looked past the solid quarterly results, sending Western Digital shares down 1.1% in after-hours trading to a market value of about $23.78 billion.

Cupertino rival Seagate Technology Inc. earlier this month reported financial results for the June quarter in line with Wall Street expectations.

Seagate posted revenue of about $3.3 billion, down 3.6% from a year ago. Net income topped $370 million, down 17.2%.

The company said it shipped 52.5 million hard-drive units in the recently ended quarter, down from 53.9 million a year earlier.