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Profit WD grew by 2%
Hard drive manufacturer Western Digital (WD) posted better results than Seagate in the first three calendar months. If WD increased its profit by 2%, then the competitor’s profit fell by 28%.
In the third quarter of fiscal year 2021, closed on April 3, WD posted net income of $ 384 million, or $ 1.63 per share, versus $ 375 million, or $ 1.55 per share of the company, a year earlier. This rise was due to a 7 percent cost cut to $ 611 million.
WD CEO Steve Milligan said the company was able to grow its profits despite falling demand for computers and macroeconomic difficulties. Earlier, IDC analysts estimated that in the first quarter, global PC shipments fell 6.7% to a low of six years ago – to 68.5 million units.
WD Quarterly Revenue Was $ 3.55 Billion, Down 4% YoY. The company expected sales in the range of $ 3.6 billion to $ 3.7 billion and adjusted earnings of $ 1.9-2.0 per share. The latter actually turned out to be equal to $ 1.87.
For the reporting three-month period, WD released 54.5 million hard drives against 60.4 million units a year earlier. Most of the supplied drives (18.8 million units) were intended for laptops, 13.5 million devices were shipped for desktops.
Seagate’s HDD shipments totaled 50.1 million units over the same time period. The company received a net profit of $ 291 million against $ 395 million a year earlier, and revenue decreased by 2.2% to $ 3.33 billion.