Western Digital 1Q beats Street, shares rise

Western Digital 1st-quarter profit beats Street forecasts; CEO worries about near-term demand

Associated Press

IRVINE, Calif. (AP) -- Hard drive maker Western Digital Corp. said Monday that its first-quarter net income more than doubled from a year ago, helped by the March acquisition of a data storage subsidiary of Hitachi Ltd.

Net income in the three months ended Sept. 28 rose to $519 million, or $2.06 per share, compared to $239 million, or $1.01 per share, a year ago.

Excluding items such as the amortization of intangibles related to the purchase of the company formerly known as Hitachi Global Storage Technologies, adjusted earnings came to $2.36 per share. That beat the $2.29 per share expected by analysts polled by FactSet.

Revenue rose 50 percent to $4.04 billion. That was also higher than the $3.98 billion expected by analysts.

CEO John Coyne said in a statement that a weak economy is "dampening near term demand" but said he remains confident in the company's prospects over the long term.

Shares rose $1.22, or 3.5 percent, to $36.50 in after-hours trading following the release of results. Shares closed up 40 cents, or 1.2 percent, at $35.28 in the regular session.

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