Western Digital Net Income Up 91% but Short of Mark

Western Digital Corp. reported Thursday that its first-quarter net income rose 91%, but executives remained glum over the company’s failure to meet Wall Street’s expectations.

The company posted net income of $62.7 million, or 67 cents per share, a significant boost over $32.9 million, or 35 cents a share, for the same period last year. Revenue surged 23%, to $1.09 billion from $833 million.

Analysts had placed Western Digital’s earnings for the quarter at 77 to 87 cents a share.

Western Digital officials blamed the difference on lower market prices, which squeezed the company’s profit margin.

“Obviously, we’re disappointed. But we’re still seeing strong growth in this company,” said Charles Haggerty, president and chief executive. “This is the 16th quarter that we’ve been profitable. We’re going to keep going strong.”

The disk-drive manufacturer announced last week that its earnings would be lower than Wall Street had expected. The news sent the company’s stock tumbling more than $8.50, to less than $40 a share.

On Thursday, the stock rose $2.13 a share, closing at $40.38 a share in after-hours trading on the New York Stock Exchange.