Western Digital Reduces Loss Forecast

Western Digital Corp. said its fiscal third-quarter loss would be narrower than forecast as it reined in expenses and improved inventory management.

The maker of computer disk drives said it anticipates a loss of $7 million to $10 million, or 4 to 6 cents a share, on revenue of about $530 million for the quarter ended March 30. In January, the company forecast a loss of $13 million to $17 million, or 7 to 10 cents, on revenue of “no less than” $500 million.

Lake Forest, Calif.-based Western Digital was expected to lose 8 cents a share, the average estimate of six analysts polled by First Call/Thomson Financial. Western Digital will report fiscal third-quarter results April 26.

The company’s shares closed up 4 cents at $4.04 on the New York Stock Exchange, before news of its new forecast was released.