Thursday, October 28, 2010

Western Digital reports US$197m net income in 1Q

KUALA LUMPUR: Hard disk drive manufacturer Western Digital Corp, whose components suppliers include JCY International Bhd, reported lower net income of US$197 million for its first quarter ended Oct 1, 2010 as it was impacted by aggressive industry pricing.

The company said on Thursday, Oct 28 that revenue was US$2.4 billion and net income at 84 cents per share. It shipped 50.7 million hard-drive units.

This was a decline from a year ago when Western Digital reported revenue of US$2.2 billion, shipped 44.1 million hard drives, and reported net income and earnings per share of US$288 million and US$1.25, respectively.

???In a quarter characterised by aggressive industry pricing, we remained solidly profitable, grew revenues and unit shipments year-over-year, and generated US$390 million in cash from operations,??? said its president and CEO John Coyne.

???Our low-cost business model and strong balance sheet enable us to weather the seasonality and cycles of the hard drive industry such as we experienced during the last two quarters.

Coyne said the group would continue to focus on quality, reliability, availability and profitable growth to maintain our industry leadership.

???We remain excited about the significant opportunities being created by the unabated growth in digital content in the home and workplace,??? he said.

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