Net income declines 95% to $14m
Hard disk drive manufacturer Western Digital has reported a 95% decline in net income to $14m for the second quarter 2009, compared to net income of $305m last year, on revenue down 17% at $1.82 billion.
Operating income for the quarter fell 95% to $16m, compared to $332m in the same period last year, while diluted EPS declined 96% to $0.06. Cash generated from operations was $300m. Geographically, Asia accounted for 36% of total revenue, and Americas and Europe each accounted for 32%.
The company said it shipped 35.5m units during the quarter. It shipped 13.8 million 2.5-inch mobile drives and 4.1m 3.5-inch units for the PVR/DVR market, compared to the 8.7m and 4.1m units shipped last year, respectively.
For the first half, the company reported 40% decline in net income to $225m compared to $374m in the year-ago quarter, on revenue down 1% at $3.93 billion.
John Coyne, president and chief executive at Western Digital, said: Against a backdrop of unprecedented global economic turmoil and a rapid intra-quarter fall off in demand for hard drives, WD acted swiftly to align production and operating expenses with significantly lower-than-originally planned unit volumes. We plan to continue investing in next-generation product platforms and technologies during this downturn.