Summary
Western Digital Corporation (WDC) reported strong financial performance for the first quarter of fiscal year 2010, with net revenue increasing by 5% year-over-year to $2.2 billion. This growth was driven by robust demand for hard drives, exceeding company expectations and leading to historically low industry inventory levels. The company saw a significant increase in hard drive unit shipments, up 12% to 44.1 million units, with a notable rise in 2.5-inch drive shipments. Profitability also improved, with gross margin expanding to 23.3% from 20.1% in the prior year, attributed to better factory utilization, supply chain efficiency, and a favorable product mix. Operating income surged by 36% to $319 million. The company ended the quarter with a strong liquidity position, holding $2.1 billion in cash and cash equivalents and generating $434 million in cash flow from operations, indicating financial stability and operational efficiency.
Financial Highlights
48 data points| Revenue | $2.62B |
| Cost of Revenue | $1.93B |
| Gross Profit | $687.00M |
| Operating Expenses | $214.00M |
| Operating Income | $473.00M |
| Net Income | $429.00M |
| EPS (Basic) | $1.89 |
| EPS (Diluted) | $1.85 |
| Shares Outstanding (Basic) | 227.00M |
| Shares Outstanding (Diluted) | 232.00M |
Key Highlights
- 1Net revenue increased 5% to $2.2 billion, driven by stronger-than-expected demand for hard drives.
- 2Hard drive unit shipments grew 12% to 44.1 million units, with 2.5-inch drives showing significant gains.
- 3Gross margin improved to 23.3% from 20.1% due to operational efficiencies and product mix.
- 4Operating income increased by 36% to $319 million, reflecting improved profitability.
- 5The company generated $434 million in cash flow from operations.
- 6Western Digital ended the quarter with $2.1 billion in cash and cash equivalents.
- 7Non-desktop hard drive revenue represented 64% of total hard drive revenue, up from 61% in the prior year, indicating a strategic shift towards higher-growth markets.