Western Digital profits drop 8%

Though the disc drive maker stays positive as it outperforms estimates
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Though the disc drive maker stays positive as it outperforms estimates

Disk drive group Western Digital has reported Q4 profits falling 8 per cent due to lower revenue, though has still outperformed previous estimates.

The group saw profits fall to $196 million for the quarter, down from the $213 million in the same quarter last year. The group’s profit was lifted by an extra $23 million made in one-time gains.

Revenues also trimmed, down from $2 billion to $1.9 billio, though analysts such as Thomson Reuters expected full-year revenues to sink to $1.6 billion.

Despite a fall in revenues, unit sales in hard drives did not look as negative. Western Digital said it had shipped 40 million hard drives throughout the quarter, up from the 35.2 million shipped in Q408.

"In a challenging time for the worldwide economy and the hard drive industry, WD maintained profitability and stayed cash flow positive throughout the fiscal year," said John Coyne, WD CEO.

"Our fiscal 2009 and June quarter results demonstrate customers' ongoing preference for WD products based on their exceptional quality, reliability and availability, as well as the continued effectiveness of the WD business model and the passion, nimbleness and capabilities of the WD team.

“In the June quarter, we responded promptly to capitalise on unexpected market upside in each of our served markets to produce financial results that significantly exceeded expectations, and included a return