Western Digital has already completed the first quarter of 2013 fiscal year. Revenue for the period was $ 4 billion, which is about 50% more revenue for the same period last year. Operating profit was increased from $ 259 million to $ 592 million, and net income grew from $ 239 million to $ 519 million Earnings per share were $ 2.06, the company completed the quarter with $ 3.5 billion of cash and cash equivalents.
For the quarter WD shipped 62.5 million hard drives at the same time last year - 57.8 million hard drives. However, compared with the previous quarter can speak of the decline in sales from 71 million to 62.5 million units. Average price of hard drives sold was $ 62. A year ago it was $ 46, but after the October floods in Thailand, the figure jumped to $ 69, and has since steadily declined. Profit rate rose from 20.1% to 29.6% in annual terms, but declined from 31% to 29.6% .
The total market in the last quarter of WD is estimated at 139.2 million hard drives - this is less than the previous quarter (156.7 million units.) The share of the market was reduced from 45.3% to 44.9%. WD explain this by drop in demand, large stocks of finished products, which customers had managed to create in previous quarters. The demand was not high enough to allow computer manufacturers to use up these reserves to the current moment. The share of OEM-sector accounted for 63% of sold hard drives , and another 24% went to distribution channels and directly to retail were only 13%.
John Coyne , WD Director General , summarized the results of six years in this position, noting double the company's market share, revenue growth, and three-time five-fold increase in profits. Perhaps if there were no October floods last year, the results would have been more modest. In the next quarter WD expects to receive revenues of $ 3,55-3,7 billion and profit margins of 28%.
Among the factors limiting demand for hard disk drives in the medium term, WD representatives mentioned weakness of the world economy, the expectation of Windows 8 release, and the growing popularity of smartphones and tablets.