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Western Digital Counters Nervousness With Strong Results

Lake Forest-based Western Digital Corp. reported a 19% rise in profits for the recently ended quarter on a 27% jump in disk drives sales.

Western Digital, the No. 2 drive maker after Scotts Valley-based Seagate Technology, reported net income of $121 million for March quarter, up from $102 million a year earlier.

Revenue came in at $1.4 billion, up from $1.1 billion a year earlier.

The results beat Wall Street’s expectations. There was some nervousness among analysts about stepped up competition and falling prices for disk drives. Two weeks ago, Seagate reported a big drop in profit for the March quarter.

“The industry saw seasonally softer demand and pricing in the March quarter and we were able to adjust to those challenges and post solid financial results, generate cash and grow in several of our newer markets,” Western Digital Chief Executive John Coyne said.

Western Digital’s diversification effort gained steam in the quarter as 47% of sales came from sources other than desktop PCs, its traditional market.

A year earlier, 29% came from newer sources, which include drives for notebook computers, consumer electronics, corporate networks and drives sold through stores.

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