Western Digital Reports Strong Sales in December Quarter

Western Digital, a leading disk-drive and flash memory chip company, announced its sales figures for the December quarter on Thursday. Despite posting revenue of $3.03 billion, a 2% decrease compared to the same period last year, the company's sales were still above Wall Street estimates. In fact, these results marked a significant improvement from the previous quarter, with a 10% increase totaling $3 billion.

Notably, Western Digital's adjusted loss per share for the fiscal second quarter was 69 cents, beating their own guidance range of $1.05 to $1.35 per share. According to generally accepted accounting principles (GAAP), the company recorded a loss of 87 cents per share.

The revenue generated from flash memory reached $1.67 billion for the quarter, surpassing the $1.66 billion reported in the previous year. Furthermore, hard disk drive revenue stood at $1.37 billion, which significantly exceeded the consensus forecast of $1.2 billion.

Despite these positive results, Western Digital shares experienced a 4.0% decrease in after-hours trading, closing at $58.

Overall, Western Digital's sales performance in the December quarter demonstrates its resilience and ability to navigate through challenging market conditions. With their robust product offerings in disk-drives and flash memory chips, the company is well-positioned for continued growth in the coming months.

Strong Growth Expected for Western Digital in Q1

Revenue projections for Q1: $3.2 billion to $3.4 billion

Western Digital has released its revenue projections for the first quarter of this year, and the numbers are looking very promising. The company is expecting to see a revenue range of $3.2 billion to $3.4 billion, surpassing the previous Street consensus of $3.15 billion.

Not only is Western Digital projected to achieve strong revenue growth, but it is also anticipating non-GAAP earnings per share in the range of a loss of 10 cents to a profit of 20 cents. This estimate includes factory under-utilization charges of $30 million to $40 million in hard drives. In comparison, the Street consensus had predicted a loss of 31 cents per share.

CEO David Goeckeler expressed his confidence in the company's strategic approach: "Western Digital’s second quarter results demonstrate that the structural changes we have put in place over the last few years and the strategy we have been executing are producing significant outperformance across our flash and HDD businesses."

Goeckeler highlighted key aspects of their strategy that have contributed to this success, including proactive inventory management, offering a diverse range of products, effective control over product costs through focused R&D and manufacturing, and enhancing business agility. He believes that these measures will not only improve profitability throughout different business cycles but also mitigate their impact.

Furthermore, Western Digital reported a notable recovery in cloud revenue, which increased by 23% sequentially. This rebound comes after experiencing declining business over the last three quarters.

Although the announcement did not provide an update on the company's plan to spin-off its flash memory business, Western Digital's strong performance and strategic execution are undoubtedly positioning them for continued success in the future. Retaining Focus on Eric J. Savitz

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