Western Digital Announces Record Profits!

Remember Seagate's record profits? Western Digital is set to announce the same. The important part:

Western Digital® Corp. (NASDAQ: WDC) today reported revenue of $12.5 billion and net income of $1.6 billion, or $6.58 per share for fiscal year 2012, compared to fiscal 2011 revenue of $9.5 billion and net income of $726 million, or $3.09 per share. On a non-GAAP basis, fiscal 2012 net income was $2.1 billion or $8.61 per share, compared to fiscal 2011 net income of $770 million or $3.28 per share.¹ Both the GAAP and non-GAAP fiscal 2012 results include results from the company’s newly acquired HGST subsidiary from the acquisition date of March 8 through the end of fiscal 2012.

Basically, Revenue increased 30% or so over last year, while net income increased over 2 times, indicating a profit margin about 68% larger. So - we've got to wonder if those really expensive hard drives are worth their cost - which they're not. You can hop over and get an SSD for cheaper sometimes now, with those prices dropping regularly. Now is a great time to get an SSD, and until HDD prices drop, I guess it's SSDs for lots of us.

With these record profits, you've got to hope that prices would drop - but apparently not. There are many reactions including "money flood" or "31% more hard drives sold shortage".

Western Digital stock is up 2% on the day, 20% after-hours on July 25, 2012.

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