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Technology / AI and automation

WESTERN DIGITAL WARNS Q2 WILL NOT FULFILL EXPECTATIONS

Information storage and software giant Western Digital Corp has warned its second quarter results are not going to be up to analysts’ expectations. The Irvine, California-based company anticipates results for the quarter to December 27 are likely to be around $0.20 to $0.30, far from the predicted $0.83. Western Digital is attributing the figures to higher than normal competitive pricing pressures in the desktop hard drive market, but is optimistic about an apparent strong demand for the products. The company has also suggested that there is a possibility it will take non-recurring charges of around $15m to $30m relating to the phase-out of its thin-film head products. This is the second consecutive quarter that Western Digital has posted a profit warning, attributing losses to the same trying (CI No 3,257). The company still managed to turn in a first quarter revenue of $1.09bn, up 23% from the previous year’s $883m, with net income of $62.7m, up an impressive 91% from last year’s $32.9m (CI No 3,265).

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CBR Staff Writer

CBR Online legacy content.