Western Digital Corp. today reported fiscal third quarter 2024 financial results.

"As evidenced by our excellent third quarter results, Western Digital continues improving through-cycle profitability and dampening business cycles by leveraging our strategy of developing a diversified portfolio of industry-leading products across a broad range of end markets," said David Goeckeler, Western Digital CEO. "We are in the early innings of unlocking the full potential of this company, and as industry supply and demand dynamics continue to improve, we will remain disciplined around our capital spending and focused on driving innovation and efficiency across our businesses. We are confident in our strategy and the actions we have taken to-date, which successfully position us to capitalize on the promising growth prospects that lie ahead."

At the NAB Show 2024, in Las Vegas, Western Digital Corp. (NASDAQ: WDC) is unveiling an exciting lineup of technologies and new storage solutions designed for today's and tomorrow's complex media and entertainment (M&E) workflows. Western Digital continues to focus on creating what's next with advanced solutions that address a broad range of growing content needs.

The increasing demand for rich and engaging content, with higher resolutions and more frames per second, is generating the need for faster, more flexible high-capacity storage solutions to help streamline workflows and keep up with high-pressure project demands. For every step of the workflow - from capture and transfer to archive - Western Digital is committed to advancing technology to help professionals and creators get work done faster and more efficiently, ultimately saving time and money, so they can focus on their creativity.

TrendForce reports that anticipation of NAND Flash price hikes into Q2 has motivated certain suppliers to minimize losses and lower costs in hopes of returning to profitability this year. Kioxia and WD led the charge from March, boosting their capacity utilization rates to nearly 90%—a move not widely adopted by their competitors.

TrendForce points out that to meet the demand surge in the second half of the year, especially given Kioxia and Western Digital's currently low inventory, the production increase is mainly targeting 112-layer and select 2D products. This strategy is expected not only to secure profitability within the year but also to contribute to a projected 10.9% rise in the annual NAND Flash industry supply bit growth rate for 2024.

Western Digital Corp. ("Western Digital" or "the Company") today provided an update on its previously announced plan to separate into two independent, publicly traded companies. On track for the second half of calendar year 2024, significant progress towards the completion of the separation is underway with key transactional projects including global legal entity establishment, customer and supplier contract transfers, final stage preparation for government filings, and initial executive leadership appointments for both HDD and Flash companies post-separation.

Announced on October 30, 2023, Western Digital plans to separate its HDD and Flash businesses, creating two independent, public companies with market-specific, strategic focus. The company's separation will better position each franchise to execute innovative technology and product development, capitalize on unique growth opportunities, extend respective market leadership positions, and operate more efficiently with distinct capital structures.

Japan's Jiji news agency has cottoned onto a major computer memory industry rumble—a Friday Reuters report suggests that Kioxia has offered an olive branch to SK Hynix, perhaps in a renewed push to get its proposed (and once rejected) merger with Western Digital over the finishing line. The South Korean memory manufacturing juggernaut took great issue with the suggested formation of a mighty Japanese-American 3D NAND memory chip conglomerate—SK Hynix's opposition reportedly placed great pressure on Western Digital (WD), and discussions with Kioxia ended last October.

Kioxia is seemingly eager to resume talks with WD, but requires a thumbs up from SK Hynix—according to Jiji's insider source(s), the Tokyo-headquartered manufacturer is prepared to offer its South Korean rival a nice non-volatile memory production deal. Kioxia's best Japanese 3D NAND fabrication facilities could play host to SK Hynix designs, although it is too early to tell whether this bid has been accepted. The Yokkaichi and Kitakami plants are set to receive a 150 billion yen Government subsidy—Kioxia and WD's joint venture is expected to move into cutting-edge semiconductor production. The Japanese government is hoping to secure its native operations in times of industry flux.

Western Digital Corp. today reported fiscal second quarter 2024 financial results. "Western Digital's second quarter results demonstrate that the structural changes we have put in place over the last few years and the strategy we have been executing are producing significant outperformance across our flash and HDD businesses," said David Goeckeler, Western Digital CEO. "We are seeing our efforts come to fruition as our financial performance met, or exceeded, the non-GAAP guidance ranges we provided in October, and I am confident that our strategy of managing inventory proactively, offering a broad range of products, closely controlling our product cost through focused R&D and manufacturing, and bolstering the agility of our business will allow us to improve through-cycle profitability and dampen business cycles into the future."

• Second quarter revenue was $3.03 billion, up 10% sequentially (QoQ). Cloud revenue increased 23% (QoQ), Client revenue decreased 2% (QoQ) and Consumer revenue increased 15% (QoQ).
• Second quarter GAAP earnings per share (EPS) was $(0.87) and Non-GAAP EPS was $(0.69), which includes $156 million of underutilization-related charges in Flash and HDD.
• Expect fiscal third quarter 2024 revenue to be in the range of $3.20 billion to $3.40 billion.
• Expect Non-GAAP EPS in the range of $(0.10) to $0.20, which includes $30 to $40 million of underutilization-related charges in HDD.

TrendForce reports a pivotal shift in the NAND Flash market for 3Q23, primarily driven by Samsung's strategic decision to reduce production. Initially, the market was clouded by uncertainty regarding end-user demand and fears of a subdued peak season, prompting buyers to adopt a conservative approach with low inventory and slow procurement. However, as market leaders like Samsung implemented substantial production cuts, buyers' attitudes shifted toward a more aggressive procurement strategy in anticipation of a market supply decrease. This led to a stabilization and even an uptick in NAND Flash contract prices by quarter-end, driving a 3% QoQ increase in bit shipments and culminating in a total revenue of US$9.229 billion, marking an approximate 2.9% increase.

The story unfolds with Kioxia and Micron—the only two to witness a dip in revenue rankings this quarter—while Samsung maintained its robust performance. Despite sluggish demand in the server sector, Samsung's fortunes rebounded thanks to a boost in consumer electronics, especially with high-capacity products in PCs and smartphones. Samsung emerged from a trough in Q3, with strategic inventory replenishments fueling further strategic stocking, and a shift in operational focus toward maximizing profit. This led to a minor 1-3% decrease in shipped bits, but a 1-3% increase in ASP, stabilizing Q3 NAND Flash revenue at US$2.9 billion.

As new applications, use cases and connected devices multiply, Western Digital's enterprise-class hard disk drives (HDDs) remain critical for helping data center customers design more cost-efficient, scalable and sustainable infrastructure. When combined with the emergence of generative AI and the multitude of innovative applications it is enabling, the demand for high-capacity, low-power and reliable storage is poised to surge.

Western Digital leverages numerous technology innovations - ePMR, OptiNAND, UltraSMR and more - to deliver predictable capacity growth in scalable, highly reliable products. Western Digital is now shipping its new 10-disk 24 TB CMR HDD family for hyperscale, cloud and enterprise data center customers. Sampling since August, the new 28 TB SMR HDD is also ramping, adding to the company's SMR leadership position and momentum as its 26 TB SMR HDD exabyte shipments reached nearly half of its data center exabytes shipped in the first quarter fiscal year 2024.

Western Digital Corp. (NASDAQ: WDC) ("Western Digital" or "the Company") today announced its Board of Directors has unanimously approved a plan to separate its HDD and Flash businesses. Creating two independent, public companies with market-specific, strategic focus, the company's separation will better position each franchise to execute innovative technology and product development, capitalize on unique growth opportunities, extend respective leadership positions, and operate more efficiently with distinct capital structures. The transaction also provides strategic optionality for both businesses. The separation is intended to be structured in a tax-free manner and is targeted for the second half of calendar year 2024.

"Our HDD and Flash businesses are both well positioned to capitalize on the data storage industry's significant market dynamics, and as separate companies, each will have the strategic focus and resources to pursue opportunities in their respective markets. Importantly, separating these franchises will unlock significant value for Western Digital shareholders, allowing them to participate in the upside of two industry leaders with distinct growth and investment profiles," said David Goeckeler, CEO, Western Digital. "We have already laid important groundwork by building market-leading portfolios and enhancing the operational efficiency of each business, including the creation of separate Flash and HDD product business units and separating operational capabilites over the past several years. Additionally, we now have strong product, operational, and financial leadership in place to execute this plan successfully. Each business is in a solid position to succeed on its own, and the actions we are announcing today will further enable each company to drive long-term success in the years to come."

Western Digital Corp. (Nasdaq: WDC) today reported fiscal first quarter 2024 financial results. "Western Digital's fiscal first quarter results exceeded our expectations as the team's efforts to bolster business agility and develop differentiated and innovative products across a broad range of end-markets have resulted in sequential margin improvement across flash and HDD businesses," said David Goeckeler, Western Digital CEO. "Our Consumer and Client end markets continue to perform well and we now expect our Cloud end market to grow going forward. Our improved cost structure positions Western Digital to capitalize on enhanced earnings power as market conditions continue to improve."

• First quarter revenue was $2.75 billion, up 3% sequentially (QoQ). Cloud revenue decreased 12% (QoQ), Client revenue increased 11% (QoQ) and Consumer revenue increased 14% (QoQ).
• First quarter GAAP earnings per share (EPS) was $(2.17) and Non-GAAP EPS was $(1.76), which includes $225 million of underutilization-related charges in Flash and HDD.
• Expect fiscal second quarter 2024 revenue to be in the range of $2.85 billion to $3.05 billion.
• Expect Non-GAAP EPS in the range of $(1.35) to $(1.05), which includes $110 to $130 million of underutilization-related charges in Flash and HDD.

The drawn out merger talks between Kioxia and Western Digital's memory and NAND flash manufacturing businesses appears to have hit an unexpected bump on the road, in the shape of SK Hynix according to the Nikkei. As it happens, SK Hynix holds an indirect stake in Kioxia and as such, they need to approve the merger for it to be able to happen. Today, SK Hynix is the second biggest manufacturer of NAND flash, somewhat behind Samsung, but if the Kioxia WD merger were to take place, SK Hynix would be pushed into a third place in the market, which wouldn't benefit the company.

As such, SK Hynix is trying to push for a rather odd option for Kioxia, where SK Hynix wants Japanese SoftBank—who owns among other things, Arm—to step in as a partner with Kioxia. However, what SK Hynix seems to have forgotten is that WD's memory chips are made in the same fab as Kioxia's and it's highly unlikely that WD would be keen on seeing this last minute proposal by SK Hynix play out. The Kioxia WD merger would result in a new company where Kioxia would own 63 percent and WD 37 percent, based on current assets. However, WD is meant to add further capital to the merger, so it can get a 50.1 percent stake in the final company for its shareholders, with Kioxia ending up with 49.9 percent.

To help consumers get the most out of their handheld gaming PC experience, WD_BLACK from Western Digital is introducing a new premium, high-performance M.2 2230 solution architected for today's handheld PC gamer. Building upon the WD_BLACK legacy of performance storage for all kinds of competitive gamers, the company is introducing the WD_BLACK SN770M NVMe SSD. According to a recent Gartner report, the handheld gaming console market is expected to reach 14.8M by 2027. As the mobile gaming market continues to grow and more AAA titles are released, new and innovative storage solutions are being released and developed to ensure mobile gamers are able to make the most of their on-the-go gaming experience.

"With game sizes continually becoming larger, it's easy for handheld game consoles to fill up over time with new games and regular updates," said Eric Spanneut, vice president of client SSDs for Western Digital. "The new WD_BLACK SN770M NVMe SSD boosts available storage up to 2TB2 and is specifically designed to handle the peak performance of demanding games for handheld gaming PCs."

Over the past few months there have been reports of issues with SanDisk portable SSDs and Western Digital released a firmware update in May that was meant to prevent the drives from "unexpectedly disconnect from a computer". However, it appears that this firmware update didn't solve the problem and Western Digital is now being taken to court over drives not just having disconnect issues, but also randomly failing. The court case is expected to become a class action suit, as the plaintiff claims that the issue of failing drives affect tens, if not hundreds of thousands of people in the USA.

The models included in the complaint includes the SanDisk Extreme Pro, Extreme Portable, Extreme Pro Portable and WD My Passport SSD. A further firmware update was released in July, which is said to have made the issues even worse, with data being lost on drives or being inaccessible to drive owners. In some cases the drives go into read only mode, but sometimes this means that the drives become inaccessible to the OS, which in turn also means dataloss to the user. Time will tell how this plays out, but it's not looking great for Western Digital, but it wouldn't be the first time a storage device maker has been taken to court over failing products.

From the cloud, to the edge, to the enterprise, data center architects are deploying higher levels of flash to unlock the potential of AI, object storage, file sharing and more. At the same time, they are laser-focused on controlling spend and must find solutions to help them manage, scale and utilize storage assets more efficiently. This is driving a growing trend to disaggregate and share NVMe flash over fabric (NVMe-oF) for improved performance, availability and flexibility of storage resources.

Helping customers simplify NVMe/NVMe-oF storage deployment, Western Digital (NASDAQ: WDC) today announced its enhanced OpenFlex Data24 3200 NVMe-oF JBOF/Storage Platform along with the next-generation RapidFlex A2000 and C2000 NVMe-oF fabric bridge devices (FBDs), and the new Ultrastar DC SN655 PCIe Gen 4.0 dual-port NVMe SSD. These new storage solutions are enabling an ecosystem, providing more flexibility and choice for simplifying NVMe and NVMe-oF deployment for customers. Western Digital is now the only company with vertical integration capabilities targeting both ends of the Ethernet wire to deliver solutions where data travels from the server initiator to the storage target.

Designed for Xbox premiered its first collection with a variety of gaming accessories in playful pastel tones last spring. This year, it's time to sparkle and shine for Designed for Xbox's second collection! The new Designed for Xbox Summer Collection 2023 will include 7 shimmery, glimmery accessories for every Xbox player wanting to outsparkle the competition. Designed especially for you and crafted by our amazing partners, each product brings a unique flare that will surely brighten up any gaming session.

PowerA Advantage Wired Controller for Xbox Series X|S - Sparkle
Add some stellar style and performance to your game with the PowerA Advantage Wired Controller for Xbox Series X|S in an all-new purple sparkle design. With glittering swirls of purple and gold, this one-of-a-kind controller looks like it was sent from a deep-space nebula. Licensed by Xbox, this controller features two mappable Advanced Gaming Buttons you can program on-the-fly, and 3-Way Trigger Locks for game-specific trigger depth. Works great on Windows 10/11 too. Quality backed with a 2-year limited warranty.

In today's world demand for visual brilliance and digital content creation is skyrocketing, paving the way for more advanced technologies that support the production and consumption of rich content. For consumers, students, and professionals, fast, reliable tools are a must-have to keep their imaginations flowing. Building upon its award-winning SSD portfolio, Western Digital released the WD Blue SN580 NVMe solid state drive (SSD). The new, NVMe PCIe Gen 4.0 internal flash drive is purpose-built for the creative enthusiast community and professionals to use when upgrading current PCs or elevating a custom build.

"As creator workflows become more robust and complex with heavy applications and large multimedia assets like 4K video, it's easy to become frustrated with long load times," said Eric Spanneut, vice president of client and enterprise SSDs for Western Digital. "The new WD Blue SN580 NVMe SSD boosts productivity, so professionals and entrepreneurial creators can focus on bringing their imaginations to life without having to wait long for files to transfer or programs to load."

[Editor's note: Our in-depth review of the SN580 is now live]

News reports about Western Digital's implementation of new security measures started appearing online last week—My Cloud product owners were puzzled upon discovering that their access to cloud services had been blocked. Devices not updated with the latest firmware - version 5.26.202 (My Cloud) and 9.4.1-101 (My Cloud Home, SanDisk ibi) - were and continue to be barred from the start date effective June 15. This relatively new measure has been implemented in order to prevent further exploits of security vulnerabilities. WD is likely shoring up its online defenses following a major cyber attack on its My Cloud back in March, a hacker group demanded a hefty ransom fee for the return of private customer data. WD restored My Cloud services by mid-May, and released several software updates and security fixes.

According to a company security bulletin (issued last week): "Devices on firmware below 5.26.202 will not be able to connect to Western Digital cloud services starting June 15, 2023, and users will not be able to access data on their device through mycloud.com and the My Cloud OS 5 mobile app until they update the device to the latest firmware...Users can continue to access their data via Local Access." The latest fixes should protect customers from unauthorized access and ransomware attacks, but WD has not provided any further news about any ongoing negotiations with the hacker group behind the Spring data breach.

It appears that Western Digital is getting ready to expand its budget line of WD Blue SSDs with yet another model, this time a smaller jump from the SN570 to the SN580, compared to the jump in model numbers from the SN550 to the SN570. The drive has passed through the PCI-SIG integrators list and from that information we only know it's a PCIe 4.0 NVMe drive with a four lane interface. However, some retailers have already put up the drive for pre-order and this helps us with a few more details.

For starters, it appears that we're once again looking at drives in the 500 GB to the 2 TB range, although this doesn't mean that WD couldn't launch a 4 TB variant as well, but it seems unlikely. What we also learnt is that these product pages are place holders, as the drives are listed for the same, or higher pricing than the WD Black SN850X, which makes no sense for a budget drive which should be closer to the US$100/€100 mark than the equivalent of twice that. Another European retailer is also listing the current SN570 as being EOL:ed on the 31st of July, suggesting that the SN580 should launch around that date. The same retailer is listing the SN580 as the replacement drive under its part number, which is WDS200T3B0E for the 2 TB SKU.

Western Digital introduced the WD Black SN850P M.2 NVMe Gen 4 SSD for PlayStation 5 game consoles, which is an officially-licensed PlayStation 5 accessory. The drive can also used with PCs. It comes with a factory-fitted heatsink, and has been extensively tested for compatibility with the game console. The drive comes in three capacity-based variants—1 TB (WDBBYV0010BNC-WRSN), 2 TB (WDBBYV0020BNC-WRSN), and 4 TB (WDBBYV0040BNC-WRSN. All three models offer sequential read speeds of up to 7.3 GB/s, and while the 1 TB variant offers up to 6.3 GB/s sequential writes, the 2 TB and 4 TB ones are rated for up to 6.6 GB/s sequential writes. Their write endurance is rated at 600 TBW, 1,200 TBW, and 2,400 TBW, respectively. Western Digital is backing these drives with 5-year warranties. The company didn't reveal pricing.

Western Digital has officially unveiled its WD_BLACK C50 expansion card lineup for Microsoft's current generation Xbox Series X and S consoles, to not much surprise given that one of these products was leaked back in Spring of this year. Best Buy preempted Western Digital's announcement just over two months ago when a listing for the WD_BLACK C50 1 TB model appeared on their store site. Seagate has been the official partner (with Microsoft) for the manufacture and distribution of Xbox Series console storage expansion cards since launch time (November 2020), and has recently adjusted their pricing - possibly in anticipation of Western Digital's cheaper third party alternatives.

Xbox Series console owners have often complained about the system's expensive proprietary storage expansion ecosystem (relative to Sony's PlayStation 5 utilizing industry standard M.2 SSDs), so new competition in this highly controlled market segment is welcome. Two WD_BLACK C50 expansion cards are now available from today - in the shape of 1T B ($149.99) and 500 GB ($79.99) models. Susan Park, vice president, global strategic partnerships at Western Digital has introduced these new offerings: "Xbox consoles have been a much beloved gaming staple in households around the globe for decades. With the introduction of the WD_BLACK C50 Expansion Card for Xbox, gamers can continue to enjoy their favorite games with more flexibility so they can focus on accomplishing their next mission or defeating their final boss." Western Digital specifies that these units come with a five-year long warranty, and a further incentive for purchase is an included one-month trial of Game Pass Ultimate.

Western Digital Corp. (Nasdaq: WDC) today reported fiscal third quarter 2023 financial results. "Over the last several years, our team has focused on enhancing business agility and delivering a range of innovative, industry-leading products that address the increasing data storage demands of our customers," said David Goeckeler, Western Digital CEO. "The groundwork we laid, combined with the actions we have taken since the beginning of this fiscal year to right-size and refocus our businesses, have enabled us to navigate a dynamic environment. I am pleased that we delivered non-GAAP gross margin at the higher end of our guidance range due to strong execution across both our HDD and Flash businesses."

Microsoft's official Xbox Twitter account has today announced that its official range of Xbox Series console storage expansion cards has been reduced in price: "Think of all the new games you'll be able to download and play now 👀. The Seagate Storage Expansion Card is now available starting at a lower price: xbx.lv/41e8t57." It is slightly odd that Seagate itself has not announced this lowering of gaming product MSRPs, but today's changes only affect the US market - European and UK listings feature the old prices (at the time of writing). It is not clear whether this discount is a permanent or temporary thing, but the latter is a more likely situation given rumors from last month.

It is very possible that Seagate is reacting to new competition - last month a Best Buy listing revealed that Western Digital is lining up to provide third party storage expansion cards for Xbox Series console owners. The leak of WD's incoming offerings indicated that it would be undercutting its arch rival in terms of pricing, at least with the single model that leaked (1 TB at $179.99) - Seagate has a timed exclusive agreement with Microsoft/Xbox for the licensed production/selling of proprietary cards. The officially sanctioned price drop brings the cards to more reasonable value levels, but Xbox owners have largely agreed that MSRPs were inflated from the beginning. The entry-level 512 GB Seagate model now costs $89.99 (a $50 reduction), the 1 TB model is now available at $149.99 (a $70 reduction) and the top-end 2 TB model gets the largest price slash (of $120) which brings it down to $279.99. Seagate appears to be undercutting WD's BLACK C50 1 TB model (if the Best Buy info leak price was accurate) by $30 with the official 1 TB storage expansion card.

Western Digital has declared that its My Cloud online service has been compromised by a group of hackers late last month: "On March 26, 2023, Western Digital identified a network security incident involving Western Digital's systems. In connection with the ongoing incident, an unauthorized third party gained access to a number of the Company's systems. Upon discovery of the incident, the Company implemented incident response efforts and initiated an investigation with the assistance of leading outside security and forensic experts. This investigation is in its early stages and Western Digital is coordinating with law enforcement authorities."

The statement, issued on April 4, continues: "The Company is implementing proactive measures to secure its business operations including taking systems and services offline and will continue taking additional steps as appropriate. As part of its remediation efforts, Western Digital is actively working to restore impacted infrastructure and services. Based on the investigation to date, the Company believes the unauthorized party obtained certain data from its systems and is working to understand the nature and scope of that data. While Western Digital is focused on remediating this security incident, it has caused and may continue to cause disruption to parts of the Company's business operations."

It appears that Western Digital is readying its own line of Xbox Series X|S Storage Expansion cards, and undercutting its big rival - Seagate - in a currently exclusive storage solution market. Word spread across several gaming communities over the past weekend about a new listing on Best Buy, now removed as of late April 2, for a 1 TB capacity WD_BLACK C50 Expansion Card with an asking price of $179.99. WD has offered official external storage solutions for the current generation of Xbox home games consoles, under its WD_BLACK range, but Microsoft granted exclusive manufacturing rights to Seagate for the proprietary Xbox Series X|S storage expansion card system. According to official site information and documentation, these expansion cards are effective in "delivering additional external memory while maintaining the same peak speed and performance as the console's internal SSD".

The Seagate range could have been a timed exclusive, and based on the now deleted Best Buy listing, Microsoft seems to have handed a license to WD. The 1 TB WD_BLACK C50 Expansion Card's pricing was a big talking point, due to it being substantially cheaper than the equivalent capacity Seagate model ($219.99) - a saving of forty dollars, which is an encouraging sign for gamers who have long complained that the Xbox proprietary expansion card offers bad value for money. Seagate's current crop of cards start at $139.99 (512 GB) and go up to $399.99 (2 TB).

TrendForce's latest investigations reveal that the global NAND Flash market has been facing a demand headwind since 2H22. In response, the supply chain has been scrambling to clear out inventory, driving down NAND Flash contract prices by 20-25%. Enterprise SSD took the brunt of the fall with prices plummeting 23-28%. Despite manufacturers lowering prices in an attempt to drive up demand, clients are hesitant to purchase more components for fear of overstock. As a result, NAND Flash bit shipments rose by a mere 5.3% as ASP fell 22.8%. Global NAND Flash revenue was reported to be US$10.29 billion in 4Q22—down 25% QoQ.

TrendForce reports that Kioxia and Micron saw both a reduction in production and price in 4Q22. Kioxia's revenue plunged 30.5% due to weak demand from PC and smartphone clients and data centers readjusting their inventory. Micron generated a quarterly revenue of US$1.1 billion—a staggering 34.7% QoQ drop—that has led them to drastically decrease their capacity utilization rate for fabs. Luckily, Micron was able to ship their 232-layer client SSDs in 4Q22 as scheduled, and with the 176-layer QLC enterprise SSD hot on its heels, Micron's bit shipments are predicted to steadily improve in 2023 with their revenue climbing gradually quarter by quarter.