Western Digital profit beats estimates as cloud demand rises

Wed Jul 24, 2013 5:01pm EDT

(Reuters) - Hard-disk drive maker Western Digital Corp (WDC.O) reported a higher-than-expected quarterly profit after sales rose of its cloud and personal storage products.

Western Digital and rival Seagate Technology Plc (STX.O) are focusing on expanding sales to cloud storage firms as demand drops from the PC market.

Net income for Western Digital fell to $416 million, or $1.71 per share in the fourth quarter, from $745 million, or $2.87 per share, a year earlier.

Excluding items, the company earned $1.96 per share.

Hard drive shipments fell 15 percent to 59.9 million.

Revenue fell 21 percent to $3.72 billion.

Analysts on average had expected earnings of $1.81 per share on revenue of $3.7 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Sriraj Kalluvila)