Summary
Western Digital Corporation (WDC) reported relatively flat net revenue for the fiscal year ended July 3, 2020, compared to the prior year, at approximately $16.7 billion. This stability was achieved despite a 12% decline in Client Devices revenue, largely due to a 24% increase in Data Center Devices and Solutions revenue, driven by strong demand for enterprise HDDs and Flash products, partly attributed to the accelerated shift to cloud services amid the COVID-19 pandemic. The company experienced a net loss of $250 million for the fiscal year, a significant improvement from the $754 million net loss in the prior year. This improvement, however, was accompanied by a substantial increase in R&D expenses and a decrease in SG&A expenses. The company suspended its quarterly cash dividend in April 2020 to reinvest in the business and support deleveraging efforts.
Financial Highlights
57 data points| Revenue | $16.74B |
| Cost of Revenue | $12.96B |
| Gross Profit | $3.78B |
| SG&A Expenses | $1.15B |
| Operating Expenses | $3.45B |
| Operating Income | $335.00M |
| Interest Expense | $413.00M |
| Net Income | -$250.00M |
| EPS (Basic) | $-0.84 |
| EPS (Diluted) | $-0.84 |
| Shares Outstanding (Basic) | 298.00M |
| Shares Outstanding (Diluted) | 298.00M |
Key Highlights
- 1Net revenue remained stable at approximately $16.7 billion for the fiscal year ended July 3, 2020.
- 2Data Center Devices and Solutions revenue saw a significant increase of 24%, driven by cloud demand.
- 3Client Devices revenue decreased by 12%, impacted by lower average selling prices.
- 4The company reported a net loss of $250 million, an improvement from the $754 million net loss in the prior year.
- 5Operating income stood at $335 million, a notable increase from $87 million in the previous year.
- 6Western Digital suspended its quarterly cash dividend in April 2020.
- 7The company has a significant joint venture with Kioxia Corporation for flash-based memory wafer manufacturing.