Hard disk manufacturer Western Digital has announced a net loss of $145.2 million on sales of $969.6 million for its second fiscal quarter.
The loss was caused by a larger than expected $148 million charge, which includes inventory write-downs. Revenues were down 13 per cent on the year ago quarter, when the company earned $64.2 million on turnover of $1.12 billion.
Western Digital is reducing production, terminating its three-inch mobile hard drive range and accelerating its transition from thin film recording to MR (magneto-resistive) technology.
On 2 December, Western Digital warned that its second quarter would fall short of expectations, predicting it would break even before charges. At that time, it estimated the charge to be in the range of $85 to $95 million. The warning was followed by a spate of lawsuits by shareholders. Two more were filed this week.
The hard disk market has been hit by weakening demand and pricing pressure. Western Digital's two main competitors, Seagate and Quantum, both recently posted losses for the quarter.
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