Western Digital introduces Q2 2024 financials, showcasing strong performance

Western Digital Corp., a leading data storage company, has announced its fiscal second quarter 2024 financial results. The company’s CEO, David Goeckeler, expressed satisfaction with the performance, stating that the strategic changes implemented over the past few years have resulted in significant growth in both their flash and HDD businesses.

In terms of revenue, Western Digital reported $3.03 billion for the second quarter, representing a 10% increase compared to the previous quarter. Cloud revenue saw a substantial 23% growth, while client revenue experienced a slight dip of 2%. On the other hand, consumer revenue witnessed a healthy increase of 15%.

The company’s GAAP earnings per share (EPS) for the second quarter were $(0.87), while the non-GAAP EPS stood at $(0.69). It is important to note that these figures include underutilization-related charges amounting to $156 million in Flash and HDD.

Looking ahead to the fiscal third quarter of 2024, Western Digital expects revenue to range between $3.20 billion and $3.40 billion. The projected non-GAAP EPS is estimated to be between $(0.10) and $0.20, which includes underutilization-related charges of $30 to $40 million in HDD.

During the second quarter, cloud revenue accounted for 35% of Western Digital’s total revenue. This growth can be attributed to increased shipments of nearline storage solutions to data center customers and improved nearline pricing. However, there was a year-over-year decrease due to lower eSSD bit shipments.

Client revenue represented 37% of total revenue, with an increase in flash average selling prices (ASPs) offsetting a decline in flash bit shipments. The year-over-year increase was driven by higher flash shipments, particularly in client SSDs for PC applications.

Consumer revenue accounted for 28% of total revenue, with growth primarily driven by seasonal strength in flash bit shipments. However, the increase in flash shipments was partially offset by a decline in flash ASPs and lower HDD shipments compared to the previous year.

Overall, Western Digital’s second quarter results indicate that their strategic efforts are paying off, with strong performance across their flash and HDD businesses. The company’s focus on proactive inventory management, a diverse product range, efficient R&D and manufacturing processes, and increased business agility positions them well for improved profitability and resilience in the face of future market fluctuations.

Background Information

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About Western Digital: Western Digital, established in 1970, is a important data storage solutions provider known for its wide range of hard drives and solid-state drives. Catering to various applications, from personal computers to enterprise storage systems, Western Digital emphasizes data management and security. With a reputation for reliability and innovative solutions, the company has been pivotal in shaping the storage industry. Their products are trusted by individuals, businesses, and data centers worldwide

  

Technology Explained

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HDD: A Hard Disk Drive (HDD) is a classic data storage device that utilizes spinning disks, or platters, coated with a magnetic material to store and retrieve data. An actuator arm with read/write heads accesses data by moving over the spinning platters. HDDs offer large storage capacities at a comparatively lower cost per gigabyte, making them suitable for applications where massive data storage is required, such as servers and desktop computers. However, HDDs are slower in terms of read and write speeds compared to SSDs due to the mechanical nature of their operation. They are more susceptible to physical shocks and are less energy-efficient due to the need to constantly spin the platters.