Western Digital revenue dips 36% to $3.1 bn in Dec quarter

Memory chipmaker Western Digital has reported 36 percent drop in revenue to $3.107 billion for its second quarter in fiscal 2023.
Western Digital has generated revenue of $1.657 billion from flash products and $1.45 billion from HDD during the December quarter of 2022. Western Digital has generated revenue of $1.224 billion (–36 percent) from Cloud, $1.089 billion (–41 percent) from Client and $794 million (–25 percent) from Consumer business.

“We continue to take action to reset the business in response to the post-pandemic environment by optimizing our cost structure and strengthening our liquidity. These actions include reducing our capital expenditures across both flash and HDD and our operating expenses,” said David Goeckeler, Western Digital CEO, said in its earnings report.

Western Digital’s Cloud business represented 39 percent of total revenue. Sequentially, declines in both capacity enterprise drives sold to Cloud customers and smart video customers were partly offset by an increase in flash shipments. The year-over-year decline was primarily due to inventory digestion in hard drives.

Western Digital’s Client business represented 35 percent of total revenue. Sequentially, the decline was driven by pricing pressure across our flash products, which was partly offset by an increase in hard drive shipments. The year-over-year decline was also due to pricing pressure in flash as well as lower client SSD shipments for PC applications.

Western Digital’s Consumer business represented 26 percent of revenue. Sequentially, the increase was driven by a seasonal uptick in both retail hard drives and flash. The year-over-year decline was driven by lower retail hard drive shipments and pricing pressure in flash.