Western Digital Posts 86% Rise in Net Income

Western Digital Corp., the third-largest U.S. computer disk-drive maker, said Thursday that fiscal second-quarter profit rose 86%. Its shares climbed after the company said earnings this quarter might exceed analysts’ estimates.

Net income increased to $104.3 million, or 47 cents a share, in the quarter ended Dec. 30 from $56 million, or 26 cents, a year earlier, the Lake Forest-based company said. Sales gained 17% to $1.12 billion.

The company is poised to win orders from computer and consumer electronics makers seeking a second disk-drive supplier after industry leader Seagate Technology completes its buyout of No. 2 Maxtor Corp., said Piper Jaffray & Co. analyst Les Santiago in San Francisco.

Analysts on average expected profit of 37 cents a share on sales of $1.06 billion, according to a survey by Thomson Financial.

Western Digital shares rose 8.1% to $23.20 in extended trading. They had risen 85 cents to $21.47 in regular trading.

Western Digital expects profit of 36 cents to 40 cents a share this quarter on sales of $1.03 billion to $1.08 billion, Chief Financial Officer Stephen Milligan said. Analysts surveyed by Thomson were expecting 29 cents on sales of $998.3 million.