Profit Jumps at Western Digital

The company beats revenue estimates.
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Western Digital

(WDC) - Get Report

posted results for its fiscal first quarter that surpassed analysts' expectations.

The Lake Forest, Calif., storage components company earned $103 million, or 46 cents a share, for the quarter ending Sept. 29. That's up from the year-ago $69 million, or 31 cents a share. Sales were up to $1.3 billion from $1 billion a year earlier.

Analysts surveyed by Thomson Financial were looking for a 41-cent-a-share profit on sales of $1.16 billion.

"Several years ago we identified expansion into new markets as a major long-term goal of the company. We have achieved this off the base of a highly-successful desktop hard drive business and an efficient and leveraged business model," said CEO Arif Shakeel in a press release.

In a separate news release, the company announced that President and Chief Operating Officer John Coyne will become CEO on Jan. 2, and while current CEO Shakeel will remain with the company through June 29, 2007 as a full-time adviser, and will stand for re-election to the board of directors at the next annual meeting. Coyne has joined the board and will also stand for re-election.

Shares of Western Digital rose 74 cents, or 4.1%, to $18 in after-hours trading.