Western Digital Corp. had some good,and not so good,news for investors on Thursday.
The Lake Forest-based disk drive maker reported net income jumped 190% in the quarter ended June 30.
But the company also said a committee of independent directors is conducting a voluntary review of its historical stock option grants. The review covers options granted from 1998 to present.
Western Digital said a preliminary determination was made that measurement dates for accounting purposes may differ from recorded dates used for certain grants made from the year ended July 3, 1999, through the year ended June 27, 2003.
The company said in a release it does “not at present anticipate a material adjustment to the operating results reported today.” However, “a material adjustment to the company’s financial statements could be required.”
The company has told the Securities and Exchange Commission that its historical stock option grants are under review.
Meanwhile, Western Digital said its net profit of $119.9 million benefited from a one-time gain of $35 million during the recent quarter related to tax benefits and other items. A year ago, the company was hit with a $19 million charge related to a lawsuit settlement.
Excluding the one-time gains, Western Digital still beat analysts’ estimates of $79 million for the recent quarter.
Revenue climbed 15% to $1.1 billion during the quarter compared to the year-ago period. Analysts were expecting $1.08 billion in revenue.
