Western Digital Corporation Q3 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarterly Overview

  • Revenue was 4.2 billion dollars, flat sequentially (down 1 percent) and up 14 percent year over year.
  • Gross margin improved to 27.9 percent, up from 25.9 percent in the previous quarter.
  • Earnings per share were 0.85 dollars.
  • Operating cash flow was 142 million dollars; free cash flow was 176 million dollars.
  • COVID-19 led to higher logistics and absorption costs and some supply disruptions, but operations improved throughout the quarter.

Business Segment Performance

  • Client Devices revenue was 1.8 billion dollars, up 2 percent sequentially and up 13 percent year over year, driven by strong client SSD demand.
  • Data Center Devices and Solutions revenue was 1.5 billion dollars, up 2 percent sequentially and up nearly 22 percent year over year. Enterprise SSD revenue grew; capacity enterprise HDD was flat sequentially.
  • Client Solutions revenue was 821 million dollars, down 13 percent sequentially but up 2 percent year over year. Retail was negatively impacted by store closures late in the quarter.

Product Category Performance

  • Flash revenue was 2.1 billion dollars, up 12 percent sequentially and up 28 percent year over year. ASPs rose 5 percent and bits shipped increased 7 percent.

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 Third Quarter 2020 Conference Call. [Operator Instructions] As a reminder, this call is being recorded.Now I will turn the call over to Mr. Peter Andrew. You may begin. Peter Andrew: Okay. 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 does contain forward-looking statements, including product development 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'll now turn the call over to David. David Goeckeler: Thanks, Peter. I would like to thank everyone for joining us this afternoon, and I hope that you and your families are well given the COVID-19 pandemic we are all facing.I joined Western Digital a l

Continue Reading

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

Upgrade to Professional