Western Digital Corporation Q2 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Western Digital Fiscal Q2 2022 Earnings Summary

Quarter Highlights

  • Revenue was $4.8 billion, down 4% sequentially but up 23% year-over-year.
  • Non-GAAP EPS was $2.30, exceeding the high end of guidance.
  • Gross margin was 33.6%, down 0.3 percentage points sequentially due to elevated COVID and logistics costs.
  • Cloud revenue grew 89% year-over-year to $1.9 billion despite sequential declines from customer and component shortages.
  • Western Digital achieved its second investment-grade credit rating; debt maturity largely extended to 2026+.

Business Segment Performance

Cloud
  • Revenue: $1.9 billion (40% of total), down 14% sequentially but up 89% year-over-year.
  • Exabyte shipments decreased sequentially due to cloud customer supply chain constraints and WD component shortages.
  • Strong long-term demand signals and expanded product qualifications (enterprise SSDs qualified at 3 cloud titans and 2 OEMs, up from 1 cloud titan the prior year).
Client
  • Revenue: $1.9 billion, flat sequentially and down 1% year-over-year.
  • 5G mobile strength offset declines in client SSD and HDD.
  • Client HDD now represents less than 15% of HDD revenue.
Consumer
  • Revenue: $1.1 billion, up 9% sequentially and flat year-over-year.

Continue Reading

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

Upgrade to Professional
Operator: Good afternoon and thank you for standing by. Welcome to Western Digital’s Fiscal Second Quarter 2022 Conference Call. As a reminder, this call is being recorded. Now, we will turn the call over to Mr. Peter Andrew. You may begin. 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 and performance, 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 for introductory remarks. David Goeckeler: Thank you, Peter. Good afternoon, everyone and thanks for joining the call to discuss our second quarter of fiscal 2022 results. We delivered strong results for the fiscal second quarter

Continue Reading

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

Upgrade to Professional