Maybe Michael Douglas' character Gordon Gekko should have said "green is good" in the 1987 movie "Wall Street." At least executives at Western Digital Corp. would likely find that statement agreeable. Riding the success of its GreenPower initiative in July 2007, Western Digital introduced on Oct. 1 its second-generation Caviar Green desktop hard drives. The company now offers Green Power technology on more than 10% of its 3.5-inch hard drive shipments, making low-power technologies one of Western Digital's fastest-growing segments. The new platform is based on Western Digital's 333 gigabyte/platter technology with 32 megabyte cache, producing capacities that range from 500 gigabytes to 1 terabyte.
The latest Caviar Green hard drives consume up to 20% less power and offer a 10% increase in performance over the previous version, according to Western Digital, one of IndustryWeek's 50 Best Manufacturers for 2008.
Western Digital said in its most-recent year-end report that shipments of its Serial ATA drives featuring its GreenPower technology continue to grow. Profit for fiscal year 2008 increased 54% to $867 million, or $3.84 per share, over the previous year. Net income included tax-related and licensing charges of $124 million. Profit in 2007 was bolstered by a tax benefit of $126 million.
At A Glance
Western Digital Corp.
Lake Forest, Calif.
Primary Industry: Computers & Other Electronics Products
Number of Employees: 29,572
2007 In Review
Revenue: $5.5 billion
Profit Margin: 10.3%
Sales Turnover: 1.89
Inventory Turnover: 19.69
Revenue Growth: 25.95%
Return On Assets: 27.20%
Return On Equity: 48.74%
The company also is tailoring products for small businesses with the introduction of WD ShareSpace storage systems. The network-attached storage systems are designed to make it easier for small offices and workgroups to centralize storage for easier accessibility either within the network or remotely.
"With the WD Share Space storage system, small offices and home network users can experience the same centralized storage and data protection often found only in big corporate data centers," said Jim Welsh, vice president and general manager of Western Digital's branded products and consumer electronics groups, in a Sept. 30 statement. "The set-up process is a breeze, so you can be up and running in a matter of minutes. This WD ShareSpace system offers big-time storage without the need for a big-time IT department."
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