Summary
Western Digital Corporation (WDC) reported strong financial results for the first quarter of fiscal year 2015, with net revenue reaching $3.9 billion, a 4% increase year-over-year. This growth was driven by a 3% increase in hard drive unit shipments to 64.7 million units and stable average selling prices. The company continues to diversify its revenue away from the PC market, with 55% now derived from non-PC segments like enterprise and consumer electronics, and enterprise SSD revenue showing significant growth at $156 million. Operationally, WDC maintained a healthy gross margin of 29.1% and generated a robust $827 million in cash flow from operations, ending the quarter with a strong cash position of $5.2 billion. While R&D expenses increased due to acquisitions and a longer reporting period, the company demonstrated effective cost management in other areas. A significant event during the quarter was the payment of $773.4 million to Seagate to satisfy an arbitration award, impacting financing activities.
Financial Highlights
54 data points| Revenue | $3.89B |
| Cost of Revenue | $2.78B |
| Gross Profit | $1.11B |
| SG&A Expenses | $164.00M |
| Operating Expenses | $644.00M |
| Operating Income | $466.00M |
| Net Income | $438.00M |
| EPS (Basic) | $1.88 |
| EPS (Diluted) | $1.84 |
| Shares Outstanding (Basic) | 233.00M |
| Shares Outstanding (Diluted) | 238.00M |
Key Highlights
- 1Net revenue increased 4% year-over-year to $3.9 billion, driven by higher hard drive unit shipments.
- 2Diversification towards non-PC markets continues, with 55% of revenue now from enterprise and consumer electronics.
- 3Enterprise SSD revenue grew to $156 million, indicating strong performance in this segment.
- 4Gross margin improved slightly to 29.1% compared to the prior year.
- 5Generated a strong $827 million in cash flow from operations.
- 6Ended the quarter with a substantial cash and cash equivalents balance of $5.2 billion.
- 7Made a significant payment of $773.4 million related to an arbitration award.