Summary
Western Digital Corporation (WDC) reported its financial results for the quarter ending March 31, 2022. The company experienced a revenue increase of 6% year-over-year to $4.381 billion, driven by higher unit shipments in both its Flash and Hard Disk Drive (HDD) segments. Despite a significant charge of $203 million related to a contamination incident at its joint venture facilities, gross profit improved by 8% to $1.181 billion, with gross margin increasing slightly to 27.0% from 26.4% in the prior year's quarter. Net income saw a substantial decline of 87% to $25 million, largely due to the aforementioned contamination charge and a significant increase in income tax expense. For the nine-month period, revenue grew by 19% to $14.265 billion. Gross profit more than doubled, increasing by 50% to $4.429 billion, and gross margin expanded to 31.0% from 24.6%. Net income for the nine months was $1.199 billion, a significant improvement from $199 million in the prior year, primarily benefiting from strong revenue growth and improved margins, partially offset by higher tax expenses. The company continues to manage its debt, reducing its overall debt levels and extending maturities, while also investing in future capacity through its joint ventures.
Financial Highlights
53 data points| Revenue | $4.38B |
| Cost of Revenue | $3.20B |
| Gross Profit | $1.18B |
| SG&A Expenses | $281.00M |
| Operating Expenses | $857.00M |
| Operating Income | $324.00M |
| Interest Expense | $75.00M |
| Net Income | $25.00M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.08 |
| Shares Outstanding (Basic) | 313.00M |
| Shares Outstanding (Diluted) | 316.00M |
Key Highlights
- 1Revenue increased by 6% to $4.381 billion for the third quarter, driven by higher unit shipments in both Flash and HDD segments.
- 2Gross profit rose by 8% to $1.181 billion, with gross margin improving to 27.0% from 26.4% in the prior year's quarter, despite significant charges.
- 3Net income declined significantly by 87% to $25 million for the quarter, impacted by a $203 million contamination charge and higher income tax expenses.
- 4For the nine months, revenue grew 19% to $14.265 billion, and net income surged to $1.199 billion from $199 million in the prior year.
- 5The company reported strong growth in the Cloud end market, with revenue up significantly year-over-year for both the quarter and nine-month periods.
- 6Western Digital continued its debt reduction strategy, with over 85% of its debt now due in 2026 or later.
- 7A contamination incident at its Flash Ventures facilities in Japan resulted in $203 million in charges during the quarter.