Western Digital's profit, revenue beat estimates

Data storage company Western Digital Corp reported higher-than-expected revenue and profit on Wednesday, helped by demand for its products amid stabilizing PC demand and a shift by businesses to cloud storage.

REUTERS: Data storage company Western Digital Corp reported higher-than-expected revenue and profit on Wednesday, helped by demand for its products amid stabilizing PC demand and a shift by businesses to cloud storage.
Western Digital has benefited from its shift to high-performance and cost-effective NAND flash drives, which is fast replacing the traditional magnetic storage method.
The company bought SanDisk in May to bolster its NAND flash technology.
Demand for the company's cloud-based data storage products has also increased as businesses increasingly move to the cloud.
The Irvine, California-based company is also reaping rewards from royalty agreements. It signed agreement with Samsung Electronics Co Ltd last month for a semiconductor patent portfolio.
Excluding items, the company earned US$2.30 per share, beating the average analyst estimate of US$2.12 per share, according to Thomson Reuters I/B/E/S.
Rival Seagate Technology Plc reported a higher-than-expected profit on Tuesday and raised its revenue forecast for the current quarter, buoyed by strong demand for its cloud-based storage products.
Western Digital's revenue rose to US$4.89 billion in the second quarter ended Dec. 30 from US$3.32 billion a year earlier. Analysts on an average had expected revenue of US$4.76 billion.
The company's net income, however, fell to US$235 million, or 80 cents per share, from US$251 million, or US$1.07 per share, a year earlier.
Western Digital's shares, which have gained more than 80 percent in the past year, were down 1.8 percent at US$78.81 in after-market trading.
(Reporting by Rishika Sadam in Bengaluru; Editing by Saumyadeb Chakrabarty)
Western Digital's profit, revenue beat estimates Reviewed by Bizpodia on 14:03 Rating: 5

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