* 2nd-qtr adj profit $2.19/shr vs est $2.08
* 2nd-qtr rev $3.97 bln vs est $3.85 bln
* Sees Q3 adj profit $1.80-$1.90/shr vs est $1.95/shr
* Sees Q3 rev $3.65-$3.75 bln vs est $3.73 bln
* Shares fall 2 pct in extended trade
By Soham Chatterjee
Jan 22 Western Digital Corp, the world's
No. 1 hard-disk drive maker, forecast a tepid third quarter as
it expects cautious spending and a decline in the PC market to
Shares of the company fell 2 percent in extended trade after
closing at $88.08 on the Nasdaq on Wednesday.
The Irvine, California-based company, which dominates the
hard-disk drive market along with rival Seagate Technology Plc
, said it expects adjusted profit of $1.80-$1.90 per
share on revenue of $3.65-$3.75 billion for the current quarter.
The forecast was below analysts' expectations for a profit
of $1.95 per share on revenue of $3.73 billion as the company
sees an earlier-than-usual Chinese New Year, cautious spending
and a decline in the PC market to hurt demand in the first half
of the year.
Global PC shipments fell 10 percent last year, the worst
annual drop since research firm Gartner began tracking them.
However, the company said it expects to benefit from an
improving global economy and a stabilizing PC market in the
latter half of the year.
For the quarter ended Dec. 27, net income rose to $430
million, or $1.77 per share, in the second quarter from $335
million, or $1.36 per share, a year earlier.
Excluding items, the company earned $2.19 per share, beating
analysts' expectations of $2.08 per share.
Revenue rose 4 percent to $3.97 billion. Analysts, on
average, were expecting revenue of $3.85 billion, according to
Thomson Reuters I/B/E/S.
"Branded products business was seasonally stronger and so
really things played out very consistently to our expectation
with a bit more strength in gaming and a bit more strength in
the notebook business," Chief Executive Steve Milligan said on a
Western Digital shipped 63.1 million hard drives of which 54
percent comprised of non-PC sales.
Adjusted gross margin rose to 30.1 percent from 29.8 percent
last quarter, while average selling prices for hard-disk drives
rose by $2 to $60 during the same period.
The stock, which nearly doubled in value in 2013, has risen
by more than 25 percent since the company reported results in