Summary
Western Digital Corporation (WDC) reported net revenue of $3.36 billion for the fiscal first quarter ended October 2, 2015, a decrease of 15% compared to the prior year period's $3.94 billion. This decline was primarily attributed to softer demand in the PC market and a 20% decrease in hard drive unit shipments. However, the average selling price (ASP) for HDDs saw a slight increase to $60 from $58 year-over-year, driven by a more favorable product mix. Financially, the company generated $545 million in cash flow from operations and maintained a strong cash position with $5.1 billion in cash and cash equivalents. Net income for the quarter was $283 million, or $1.21 per diluted share, down from $423 million, or $1.76 per diluted share, in the prior year. Significant events disclosed include a pending $3.8 billion equity investment by Unisplendour Corporation Limited and the announcement of a planned acquisition of SanDisk Corporation for approximately $18.9 billion, signaling a strategic shift towards NAND flash storage and vertical integration.
Financial Highlights
55 data points| Revenue | $3.32B |
| Cost of Revenue | $2.41B |
| Gross Profit | $906.00M |
| SG&A Expenses | $239.00M |
| Operating Expenses | $655.00M |
| Operating Income | $251.00M |
| Interest Expense | $13.00M |
| Net Income | $251.00M |
| EPS (Basic) | $1.08 |
| EPS (Diluted) | $1.07 |
| Shares Outstanding (Basic) | 232.00M |
| Shares Outstanding (Diluted) | 234.00M |
Key Highlights
- 1Revenue decreased by 15% year-over-year to $3.36 billion due to softer demand and lower HDD unit shipments.
- 2Hard drive shipments declined by 20% year-over-year to 51.7 million units.
- 3Average selling price (ASP) for HDDs increased slightly to $60, indicating a favorable shift in product mix.
- 4Net income decreased to $283 million from $423 million in the prior year, with diluted EPS falling to $1.21 from $1.76.
- 5Operating cash flow remained robust at $545 million, and the company ended the quarter with $5.1 billion in cash and cash equivalents.
- 6Significant strategic developments include a pending $3.8 billion equity investment from Unisplendour and the announcement of a planned $18.9 billion acquisition of SanDisk, aimed at strengthening its position in NAND flash technology.
- 7The company declared and paid a quarterly cash dividend of $0.50 per share.