Press Releases

Western Digital Reports Fiscal Fourth Quarter and Fiscal Year 2023 Financial Results

News Summary

  • Fourth quarter revenue was $2.7 billion, down 5% sequentially (QoQ). Cloud revenue decreased 18% (QoQ), Client revenue increased 6% and Consumer revenue increased 3% (QoQ). Fiscal year 2023 revenue was $12.3 billion.

  • Fourth quarter GAAP earnings per share (EPS) was $(2.27) and Non-GAAP EPS was $(1.98), which includes $211 million of underutilization related charges in Flash and HDD. Fiscal year 2023 GAAP EPS was $(5.44) and Non-GAAP EPS was $(3.59).

  • Expect fiscal first quarter 2024 revenue to be in the range of $2.55 billion to $2.75 billion.

  • Expect Non-GAAP EPS in the range of $(2.10) to $(1.80) which includes $200 to $220 million of underutilization charges in Flash and HDD.

SAN JOSE, Calif. - July 31, 2023

Western Digital Corp. (Nasdaq: WDC) today reported fiscal fourth quarter and fiscal year 2023 financial results.

"Throughout the fiscal fourth quarter and fiscal year, Western Digital continued to optimize our operations and successfully execute our innovative product roadmap, priming ourselves for greater profitability when demand rebounds across hard drives and flash. As a result of these efforts, we delivered revenue above our expectation and delivered a range of industry-leading products to our customers," said David Goeckeler, Western Digital CEO.

"We are encouraged by several indicators signaling improving Flash market dynamics. Our two largest end markets, Client and Consumer, are returning to growth, inventories are normalizing, content per unit is increasing and price declines have been moderating. Western Digital is well-positioned to capitalize on improving market conditions and capture long-term growth opportunities in data storage, spanning from client to edge to cloud," continued David Goeckeler.

Q4 2023 Financial Highlights

 

GAAP

Non-GAAP

 

Q4 2023

Q3 2023

Q/Q

Q4 2023

Q3 2023

Q/Q

Revenue ($M)

$2,672

$2,803

down 5%

$2,672

$2,803

down 5%

Gross Margin

3.4%

10.2%

down 6.8 ppt

3.9%

10.6%

down 6.7 ppt

Operating Expenses ($M)

$742

$758

down 2%

$582

$602

down 3%

Operating Loss ($M)

$(650)

$(472)

*

$(478)

$(304)

*

Net Loss ($M)

$(715)

$(572)

*

$(621)

$(427)

*

Earnings (Loss) Per Share

$(2.27)

$(1.82)

*

$(1.98)

$(1.37)

*

*not a meaningful figure

 

GAAP

Non-GAAP

 

Q4 2023

Q4 2022

Y/Y

Q4 2023

Q4 2022

Y/Y

Revenue ($M)

$2.672

$4,528

down 41%

$2,672

$4,528

down 41%

Gross Margin

3.4%

31.9%

down 28.5 ppt

3.9%

32.3%

down 28.4 ppt

Operating Expenses ($M)

$742

$883

down 16%

$582

$760

down 23%

Operating Income (Loss) ($M)

$(650)

$562

*

$(478)

$702

*

Net Income (Loss) ($M)

$(715)

$301

*

$(621)

$567

*

Earnings (Loss) Per Share

$(2.27)

$0.95

*

$(1.98)

$1.78

*

*not a meaningful figure

The company had an operating cash outflow of $68 million and ended the quarter with $2.02 billion of total cash and cash equivalents.

Fiscal Year 2023 Financial Highlights

 

GAAP

Non-GAAP

 

2023

2022

Y/Y

2023

2022