* Q1 adj. profit $2.12/shr vs est $2.06
* Q1 rev $3.80 bln vs est $3.78 bln
By Soham Chatterjee
Oct 24 Western Digital Corp, the world's
No.1 hard-disk drive maker, reported a stronger-than-expected
quarterly profit as it sold more higher-margin products to
businesses and consumers.
As personal computer sales decline, Western Digital and
Seagate Technology Plc - which dominate the hard-drive
industry - are focusing on sales of higher-margin storage
products to fast-growing cloud storage firms.
"... Gross margin was higher than expected because the
pricing environment for disk-drives is still healthy," FBN
Securities analyst Shebly Seyrafi told Reuters.
Noble Financial Capital Markets analyst Mark Miller said
Western Digital's gross margin of 28.6 percent was higher than
expected, noting that last year's margin of 29.6 percent was
inflated by floods in Thailand that hit production.
Western Digital's shares were down 3 percent in extended
trading. The stock has gained 66 percent this year.
Net income slid to $495 million, or $2.05 per share, from
$519 million, or $2.06 per share, a year earlier.
Excluding items, the company earned $2.12 per share.
Revenue fell about 6 percent to $3.80 billion.
Analysts had expected a profit of $2.05 per share on revenue
of $3.78 billion, according to Thomson Reuters I/B/E/S.
Operating expenses fell to $546 million in the quarter ended
Sept. 27 from $601 million a year earlier, the company said.
Shares of the Irvine, California-based company were trading
at $68.55 after closing at $70.54 on the Nasdaq.