Tuesday, April 30th 2019
Western Digital Announces Financial Results for Third Quarter Fiscal Year 2019
Western Digital Corp. today reported revenue of $3.7 billion for its third fiscal quarter ended March 29, 2019. The operating loss was $394 million with a net loss of $581 million, or ($1.99) per share. Excluding certain non-GAAP adjustments, the company achieved non-GAAP operating income of $186 million and non-GAAP net income of $49 million, or $0.17 per share. Both the GAAP and non-GAAP results include lower of cost or market inventory charges of approximately $110 million in cost of revenue, primarily related to certain flash memory products that contain DRAM components.
In the year-ago quarter, the company reported revenue of $5.0 billion, operating income of $914 million and net income of $61 million, or $0.20 per share. Non-GAAP operating income in the year-ago quarter was $1.3 billion and non-GAAP net income was $1.1 billion, or $3.63 per share.
The company generated $204 million in cash from operations during the third fiscal quarter of 2019, ending with $3.8 billion of total cash, cash equivalents and available-for-sale securities. The company returned $146 million to shareholders through dividends. On February 14, 2019, the company declared a cash dividend of $0.50 per share of its common stock, which was paid to shareholders on April 15, 2019.
"Market conditions have generally been consistent with our expectations, and while the business environment remains soft, there are initial indications of improving trends," said Steve Milligan, chief executive officer, Western Digital. "Our expectation for the demand environment to further improve for both flash and hard drive products for the balance of calendar 2019 is largely unchanged. We are executing well on enhancing our product portfolio, driving technology advancements, rightsizing our factory production levels and lowering our cost and expense structure, all of which position us to emerge stronger as market conditions improve."
The investment community conference call to discuss these results and the company's guidance for the fourth fiscal quarter of 2019 will be broadcast live online today at 2:00 p.m. Pacific/5:00 p.m. Eastern.
In the year-ago quarter, the company reported revenue of $5.0 billion, operating income of $914 million and net income of $61 million, or $0.20 per share. Non-GAAP operating income in the year-ago quarter was $1.3 billion and non-GAAP net income was $1.1 billion, or $3.63 per share.
The company generated $204 million in cash from operations during the third fiscal quarter of 2019, ending with $3.8 billion of total cash, cash equivalents and available-for-sale securities. The company returned $146 million to shareholders through dividends. On February 14, 2019, the company declared a cash dividend of $0.50 per share of its common stock, which was paid to shareholders on April 15, 2019.
"Market conditions have generally been consistent with our expectations, and while the business environment remains soft, there are initial indications of improving trends," said Steve Milligan, chief executive officer, Western Digital. "Our expectation for the demand environment to further improve for both flash and hard drive products for the balance of calendar 2019 is largely unchanged. We are executing well on enhancing our product portfolio, driving technology advancements, rightsizing our factory production levels and lowering our cost and expense structure, all of which position us to emerge stronger as market conditions improve."
The investment community conference call to discuss these results and the company's guidance for the fourth fiscal quarter of 2019 will be broadcast live online today at 2:00 p.m. Pacific/5:00 p.m. Eastern.
3 Comments on Western Digital Announces Financial Results for Third Quarter Fiscal Year 2019
I'm sure there must be really exciting forums out there for accountants that sit in a circle over these type of reports.