Western Digital Corporation Q2 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Revenue: $3.9 billion, slightly up sequentially but down 7% year-over-year.
  • Non-GAAP EPS: $0.69.
  • Results were at or above the upper end of guidance ranges provided the prior quarter (October).
  • Strong retail performance and solid demand for client SSDs, notebook, and desktop HDDs drove upside.
  • Western Digital continues to adjust operations to pandemic challenges and leverage a diversified product portfolio.

Business Segment Performance

  • Client Devices
    • Revenue: $2.1 billion, up 10% sequentially and up 19% year-over-year.
    • Notebook and desktop storage (HDD + flash) grew more than 20% sequentially.
    • Smart video HDD demand rebounded strongly, up 30% sequentially after COVID-related lows in FQ4 2020.
    • Mobile revenue fell sequentially due to China market dynamics, particularly reduced shipments to Huawei.
  • Data Center Devices & Solutions
    • Revenue: $807 million, down 29% sequentially and down 46% year-over-year.
    • Declines driven by lower shipments of capacity enterprise HDDs and enterprise SSDs.
    • One major cloud-titan qualification slipped into early January, delaying expected 18TB HDD shipments.

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Operator: Good afternoon, and thank you for standing by. Welcome to Western Digital's Fiscal Second Quarter 2021 Conference Call. Presently, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. As a reminder, this call is being recorded. 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-K 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, everyone, for joining us today. To start, our second quarter results were at or above the upper end of guidance ranges we provided in October. We reported r

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