Western Digital Corporation Q1 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Q4 revenue was $4.3 billion, up 3% sequentially and 18% year-over-year.
  • Non-GAAP EPS was $1.23, driven by strong cloud demand and record client SSD results.
  • Full-year FY2020 revenue reached $16.7 billion, up 1% from FY2019. Full-year EPS was $3.04.
  • COVID-19 caused manufacturing and logistics challenges, primarily in HDD, resulting in $96 million of added costs in the quarter.

Business Segment Performance

  • Client Devices revenue was $1.9 billion, up 5% sequentially and 19% year-over-year. Client SSDs delivered a record quarter due to remote work and learning.
  • Data Center Devices & Solutions revenue was $1.7 billion, up 11% sequentially and 32% year-over-year, marking a record quarter. Enterprise SSD revenue grew nearly 70% sequentially.
  • Client Solutions revenue was $687 million, down 16% sequentially and 9% year-over-year due to brick-and-mortar lockdowns, with recovery noted late in the quarter.

Product and Technology Highlights

  • BiCS5 112-layer flash ramp progressing well with strong yields; represents their next major cost-reduction node.
  • BiCS4 remains the dominant node, representing over 60% of bits shipped in Q4.
  • The new enterprise SSD portfolio is scaling rapidly, with revenue growth and increased share.

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Ladies and gentlemen, thank you for standing by, and welcome to Western Digital's Fourth Quarter Fiscal 2020 Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your speaker, Mr. Peter Andrew, Vice President of Investor Relations. Please go ahead, sir. Peter Andrew: Thank you, and good afternoon, everyone. Joining me today are David Goeckeler, Chief Executive Officer; and Bob Eulau, Chief Financial Officer. Before we begin, let me remind everyone that today's discussion contains forward-looking statements, including product portfolio expectations, business plans, trends and financial outlook based on management's current assumptions and expectations and, as such, does include risks and uncertainties. We assume no obligation to update these statements. Please refer to our most recent financial report on Form 10-Q filed with the SEC for more information on the risks and uncertainties that could cause actual results to differ materially. We will also make references to non-GAAP financial measures today. Reconciliations between the non-GAAP and comparable GAAP financial measures are included in the press release and other materials that are being posted in the Investor Relations section of our website. With that, I will now turn the call over to David. David Goeckeler: Thanks, Peter. And thanks, every

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional