Western Digital’s Net Income Nearly Triples
Computer disk drive maker Western Digital Corp. said fiscal fourth-quarter net income nearly tripled as sales to consumer-electronics makers advanced and the company recorded a tax benefit.
Profit in the period ended June 30 rose to $119.9 million, or 53 cents a share, from $41.2 million, or 19 cents, a year earlier, the Lake Forest company said. Sales rose 15% to $1.09 billion.
Analysts polled by Thomson Financial expected, on average, profit of 38 cents a share.
About a fifth of Western Digital’s profit came from the tax gain, which occurred after the company revalued deferred assets. Western Digital also had year-earlier costs of $19 million to settle a lawsuit.
The company also plans to review its stock option grants from 1998 to the present.
Western Digital has won consumer-electronics clients from rival Maxtor Corp., which was bought by Seagate Technology in May, Credit Suisse analyst Robert Semple said. Western Digital had 19% of global sales of disk drives in the calendar first quarter, trailing Seagate’s 29%, according to researcher ISuppli Corp.
Shares of Western Digital fell 15 cents to $16.70.