Western Digital Exceeds Own Guidance

The hard-drive maker cites solid demand in the PC channel.
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Western Digital

(WDC) - Get Report

said late Wednesday that revenue, unit shipments, and earnings per share are all expected to exceed earlier guidance for its fiscal third quarter.

Revenue and unit shipments are projected to be about $590 million and 8.0 million, respectively while earnings per share are expected to reach 8 cents, excluding non-recurring items, the firm said. Including non-recurring tax benefits and investment gains, total earnings per share are expected to reach 10 cents.

Western Digital, which makes and sells hard drives, had said earlier that it expected its March quarter to be even with or slightly below its December quarter, when the company posted revenue of $575 million on unit shipments of 7.7 million and earnings of 5 cents per share, excluding items.

Thomson Financial/First Call had been looking for a 4-cent profit on revenues of $550.5 million.

"The solid demand we experienced in our PC sales channels in January and February continued in the month of March, accounting for the strong volume upside,'' said Matt Massengill, chairman and chief executive officer.

Massengill said the firm benefited from a broad product set and from its participation in the emerging gaming console business for hard drives. He also said the performance is noteworthy given the challenging conditions in the PC and hard drive industries.

"In this environment, the industry has learned to manage fluctuations in supply and demand much more effectively than in the past,' he said.

Western Digital, which rose a penny to $6 in the regular session, will report its final results and provide financial guidance after the market closes on April 25, 2002.