Western Digital Announces Financial Results for First Quarter Fiscal Year 2019

[btarunr]

Western Digital Corp. (NASDAQ: WDC) today reported revenue of $5.0 billion for its first fiscal quarter ended Sept. 28, 2018. Operating income was $686 million with net income of $511 million, or $1.71 per share. Excluding certain non-GAAP adjustments, the company achieved non-GAAP operating income of $1.1 billion and non-GAAP net income of $906 million, or $3.04 per share.

In the year-ago quarter, the company reported revenue of $5.2 billion, operating income of $905 million and net income of $681 million, or $2.23 per share. Non-GAAP operating income in the year-ago quarter was $1.4 billion and non-GAAP net income was $1.1 billion, or $3.56 per share.

The company generated $705 million in cash from operations during the first fiscal quarter of 2019, ending with $4.8 billion of total cash, cash equivalents and available-for-sale securities. The company returned $711 million to shareholders through share repurchases and dividends. On Aug. 1, 2018, the company declared a cash dividend of $0.50 per share of its common stock, which was paid to shareholders on Oct. 15, 2018.

"Our fiscal first quarter results reflected strength in capacity enterprise, surveillance hard drives and embedded flash solutions, with each growing revenue over 30% from the year-ago quarter," said Steve Milligan, chief executive officer of Western Digital. "However, strength in these end markets was offset by ongoing declines in flash pricing. A more challenging global business environment and the corresponding economic impacts are contributing to a more conservative demand outlook for our products. In response to these conditions, we are taking immediate actions to align our flash output with projected demand. We remain focused on successfully navigating the current market conditions as we continue to build the Western Digital platform for long-term success and industry leadership."

The investment community conference call to discuss these results and the company's guidance for the second fiscal quarter of 2019 will be broadcast live online today at 2:30 p.m. Pacific/5:30 p.m. Eastern. The live and archived conference call/webcast, the company's guidance for the second fiscal quarter and the earnings presentation can be accessed online at investor.wdc.com. The telephone replay number in the U.S. is 1(855) 859-2056 or +1(404) 537-3406 for international callers. The required conference ID is 7955737.

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[TheLostSwede]

No mention about their share price dropping after this disappointing announcement?

 

[bonehead123]

and now they will complain about the increased cost of materials, or trade tariffs, or some other lame-assed excuse to justify this massive mismanagement and lack of foresight/planning.....

kaBoom we hearz in the distance as da bomb drops......

 

[TheGuruStud]

Look how poor they are! How will they only survive on 2 bil profit per year?

Time to invent another tragedy to jack prices with their best buds.

 

[Xzibit]

Look how poor they are! How will they only survive on 2 bil profit per year?

Time to invent another tragedy to jack prices with their best buds.

Think they are high-five'n Samsung

Current geopolitical and industry dynamics are creating a more challenging global business environment. For example, trade tensions with China, changes in monetary policy, foreign exchange volatility and the corresponding economic impacts are causing our customers to be more conservative, resulting in a demand slowdown for our products.
This softening demand, in combination with increased flash supply, has led to a market imbalance resulting in a deteriorating near-term flash pricing environment.
In response to these conditions, we are making an immediate reduction to wafer starts and delaying deployment of capital equipment. These actions will reduce our wafer output beginning in fiscal Q3 2019. The goal of these actions is to better align our output with the projected global demand for flash.
The duration of the planned output reduction will depend upon market conditions and will not impact our ability to meet customer commitments, nor will it impede our ability to deliver the most innovative and cost competitive solutions to the market.