Western Digital posted a loss last quarter only consumer
Hardware

Western Digital posted a loss last quarter — only consumer drives showed growth

Western Digital reported financial results for the second quarter of fiscal 2023 ended December 31, 2022 for the calendar year. The company’s revenue for the period was $3.11 billion, at the top of the forecast range.

    Image source: Western Digital Corporation

Image source: Western Digital Corporation

GAAP earnings per share for the second quarter were $1.40 (non-GAAP: $0.42). Sales fell to $3.11 billion and operating losses were $321 million. In the previous quarter, sales were $3.74 billion and operating income was $158 million. Year over year, revenue fell 36%. The company expects third-quarter revenue to range between $2.6 billion and $2.8 billion.

“The Western Digital team delivered revenue at the high end of our guidance range despite the challenging flash pricing environment <…> We continue to take steps to realign the business in response to post-pandemic conditions, streamlining the cost structure and strengthening liquidity.”— David Goeckeler, the CEO of Western Digital, commented on this question.

Western Digital’s business transformation includes cutting capital expenditures for flash and hard drives, reducing operating expenses and raising finance. Together, these measures are intended to provide financial flexibility and enable the company to continue to implement the planned projects according to the previously approved roadmap.

During the period, 39% of Western Digital’s revenue came from the drive segment for cloud service providers. A continued decline in enterprise hard drive sales was partially offset by increased shipments of solid state drives. Deliveries in the customer segment brought the company 35% of sales. The sequential decrease in shipments in this segment was due to pricing pressures in flash drives, partially offset by increased hard drive shipments. The consumer direction brought in 26% of sales. Steady growth has been fueled by seasonal increases in retail shipments of flash memory-based hard drives and drives.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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