* Second-quarter adjusted earnings/share $2.09 vs est $1.82
* Second-quarter rev up about 90 pct to $3.8 bln vs est
* Enterprise segment shipment grew about 10 pct from
first-quarter levels - analyst
* Co institutes voluntary separation program
* Shares down 2 pct in extended trading
By Chandni Doulatramani
Jan 23 Hard disk drive maker Western Digital
Corp's second-quarter results beat analysts'
expectations, helped by growth in its enterprise segment.
Shipment in the enterprise segment rose about 10 percent
from first-quarter levels to 6.63 million units, analyst Nehal
Chokshi of Technology Insights Research told Reuters.
The segment, which caters to storage customers, is typically
a higher-margin business for hard disk makers and mostly
insulated from fluctuations in PC demand.
Separately, the company said it was instituting a voluntary
separation program at its unit in the U.S. to cut costs as
demand for its hard disk drives (HDD) remained muted.
Western Digital shares, which have risen about 34 percent in
the last three months, were down about 2 percent at $46.30 in
after-market trading on Wednesday. They closed at $47.07.
PC sales have been declining since consumers prefer
smartphones and tablets.
Worldwide PC shipments declined to 90.3 million units in the
last three months of 2012, research firm Gartner said earlier in
January, indicating that the sector was suffering from a shift
in consumer habits as much as a weak global economy.
It also said PC sales fell 4.3 percent in the fourth
Western Digital expects termination-related charges
comprising cash severance and other one-time termination
benefits. It expects to complete the program by the first
quarter of fiscal 2014. ()
The company's total shipment in the second quarter increased
about 108 percent from a year earlier to 59.2 million drives.
Revenue rose about 90 percent to $3.8 billion.
Net income rose to $335 million, or $1.36 per share, from
$145 million, or 61 cents per share, a year earlier.
The company, which along with Seagate Technology Plc
dominates the hard disk drive market, earned $2.09 per share,
Analysts expected adjusted earnings of $1.82 per share on
revenue of $3.68 billion, according to Thomson Reuters I/B/E/S.
Western Digital has recovered fast after its manufacturing
facilities in Thailand were hit by floods in 2011.
Thailand, which accounted for over half of the world's hard
disk drive production, saw its worst flooding in decades that
threw industrial production off track as factories and estates
Seagate said earlier this month that it expects to report
higher second-quarter revenue than its previous forecast.