Western Digital Net Drops 33%
October 28 2015 - 5:40PM
Dow Jones News
Western Digital Corp. said its earnings fell 33% in the latest
quarter as the biggest maker of computer disk drives affirmed the
preliminary results its released last week.
The Irvine, Calif., company also unveiled last week a $19
billion deal for memory-chip maker SanDisk Corp., a key supplier of
memory devices for smartphones that is charging into Western
Digital's traditional business of supplying computer makers. The
deal would make Western Digital the broadest supplier of
data-storage components-and likely fuel new pricing pressure in the
storage market.
The deal is a part of a consolidation trend among microchip
makers and their equipment suppliers amid challenges from slower
growth, rising competition and technology shifts across the
electronics sector.
For the period ended Oct. 2, Western Digital reported a profit
of $283 million, or $1.21 a share, down from $423 million, or $1.76
a share, a year earlier. Excluding one-time items, per-share
earnings fell to $1.56 from $2.10. Revenue decreased 15% to $3.36
billion.
Analysts polled by Thomson Reuters expected per-share profit of
$1.56 and revenue of 3.32 billion.
Gross margin fell to 28.4% from 29.1%.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 28, 2015 17:25 ET (21:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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