WD breaks the billion mark

Hard drive titan Western Digital has closed its first financial quarter of this year, announcing revenues of US$1bn

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By  Andy Tillett Published  November 15, 2005

Hard drive titan Western Digital has closed its first financial quarter of this year, announcing revenues of US$1bn. The vendor attributes the strong growth of markets in the Middle East as a driving factor to its increase in revenue. The company’s financial quarter closed on September 30th with grown in revenue more than doubling to a whopping US$68.8m net income, with a gross margin of 17.7%. Western Digital estimates its year-on-year unit growth at 20%, up three million from the same period last year to 17.1m units. “Western Digital has shown the industry’s most consistent financial performance over the last two years, while expanding its vertical integration and making major investments in new technologies and new products,” said Hafeez Khawaja, senior regional director Middle East, Africa and South Asia at Western Digital. Western Digital said that 25% of its first quarter revenue was derived from non-desktop PC sources including notebook PCs, consumer electronics, enterprise applications, and retail sales. The remaining 75% came from hard drives configured into desktop PCs. The hard drive vendor continues to operate a share repurchase program, and in the first quarter it repurchased 1.1m shares for approximately US$14m. Western Digital’s targets for the remainder of the year are to continue its development of the Middle East hard drive market and the vendor is also putting a strong push to develop its business in Africa.

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