Western Digital Corp. on reported revenue its third fiscal quarter, which ended March 29, 2013. Despite of horrible decline of the PC market in the first calendar quarter of 2013, WD managed to boost shipments of hard disk drives to 60.2 million units during the quarter. Due to soft demand for PCs, Western Digital had to reduce pricing of its HDDs, however, the company claims that such reductions were lower than originally expected.
WD’s revenue for the Q3 FY2013 was $3.8 billion, hard-drive shipments were 60.2 million and net income was $391 million, or $1.60 per share. In the year-ago quarter, the company reported revenue of $3.0 billion, net income of $483 million, or $1.96 per share, and shipped 44.2 million hard drives; the company did not include sales of HGST division into its report in Q3 FY2012.
Based on WD’s estimates, the HDD market shipped approximately 135 million units during the Q1 2013 (calendar), flat to Q4 2012 and in line with WD’s forecasted range in late January.
“In our business, we saw strength in Enterprise, stable quarter-over-quarter performance in client and consumer electronics, and anticipated seasonal softness in branded products. […] We shipped a total of 60.2 million hard drives at an average selling price of $61 (down from $62 a quarter ago and $68 a year ago). We exceeded our revenue guidance due primarily to better-than-expected business and product mix and lower-than-expected like-for-like price declines,” said Wolfgang Nickl, executive vice president of finance and chief financial officer of WD.
The average capacity per drive WD shipped in the Q3 FY2013 was 810GB, a 35% year-over-year increase, which reflects strength in its branded and enterprise businesses as well as solid mix up in its client business to cope with the ever increasing amount of digital content, according to the company.
“Strong execution by our HGST and WD subsidiaries drove outstanding results in the March quarter as we continue to capitalize on the secular growth of digital data. Overall industry demand was in line with our expectations. In our business, we saw strength in enterprise, stable performance in client and consumer electronics, and some anticipated seasonal softness in branded products,” said Steve Milligan, president and chief executive officer of WD.