Western Digital Shows 3rd Consecutive Quarterly Gain : Computers: Maker of disk drives and other products had suffered a string of seven quarterly losses in 1990-91.

Western Digital Corp., riding on a recovery in the market for computer disk drives, reported Monday that it had higher earnings and revenue for its latest quarter.

The period that ended Dec. 26 was the third consecutive quarter of profitability for the computer products company after a string of seven quarterly losses in 1990 and 1991. The company had blamed the earlier losses on product delays, a poorly managed transition to new technologies and a withering price war.

During the past year, however, Western Digital’s competitors in the disk drive business have refrained from severe price competition. Disk drives store data on personal computers.

“I think the industry learned a lot of lessons in the past three or four years,” Roger W. Johnson, Western Digital’s chairman and chief executive, said. “Our attack on the market will not be led by price but by technical leadership.”

The company reported a profit of $6.9 million, or 22 cents a share, for its second fiscal quarter. That contrasted with a loss of $20.4 million, or 70 cents a share, for the same period a year earlier. Revenue was $343.5 million, up nearly 59% from $216.3 million.

The latest results showed a steady improvement from previous quarters. For the three months that ended Sept. 26, the company had posted a profit of $4.2 million, or 14 cents a share, on revenue of $271.1 million.

In November, the company renegotiated repayment terms on its $189 million in bank debt, stretching its deadline from June, 1993, to March, 1995.

For the six months ended Dec. 26, Western Digital reported earnings of $11 million, or 36 cents a share, contrasted with a loss of $58.3 million, or $2 a share, for the first half of fiscal 1992. Six-month revenue was $614.6 million, up from $415.4 million.

Johnson said most of the growth came from the company’s disk drive business, which accounts for about 80% of revenue. The company’s computer chip manufacturing business continues to lose money, he said.

Johnson said company executives will visit Wall Street analysts today to tout the company in anticipation of a public stock offering this month. The company plans to issue 5 million additional shares, with the proceeds going to pay off some bank debt.

In Monday’s trading on the New York Stock Exchange, Western Digital stock reached a 52-week high of $9.625 a share. It closed at $9.50, up 50 cents. At that price, the company could raise $47.5 million from the pending stock offering.

Western Digital Corp.

Western Digital continues to improve its profitability, according to its latest quarterly results, released Monday. The company earned $6.9 million on revenue of $343.5 million for the quarter ended Dec. 26. That contrasted with a loss of $20.4 million on revenue of $216.3 million for the same period in 1991. Figures in thousands of dollars, except per-share data:

2nd qtr 2nd qtr 6 months 6 months 1991 1992 1991 1992 Revenue $216,300 $343,475 $415,445 $614,616 Net income (loss) (20,377) 6,912 (58,321) 11,080 Per share (loss) (0.70) 0.22 (2.00) 0.36

Source: Western Digital Corp.