Western Digital Corporation (NASDAQ:WDC) UBS Global Technology Conference November 29, 2023 1:35 PM ET Company Participants Wissam Jabre - Chief Financial Officer David Goeckeler - Chief Executive Officer Conference Call Participants Timothy Arcuri - UBS Timothy Arcuri Good afternoon. Actually, it's probably still morning, but good morning. I'm Tim Arcuri. I'm the semiconductor analyst here at UBS. As the next session, very pleased to have Western Digital, and we're very pleased to have both David Goeckeler ...

Western Digital Corporation (NASDAQ:WDC) Wells Fargo 7th Annual TMT Summit November 28, 2023 4:30 PM ET Company Participants Wissam Jabre - EVP and Chief Financial Officer Conference Call Participants Aaron Rakers - Wells Fargo Aaron Rakers So why don't we go ahead and get started. So I'm Aaron Rakers. I'm the IT hardware and semiconductor analyst here at Wells Fargo. I appreciate Wissam Jabre, the Executive Vice President and CFO of Western Digital joining us here this afternoon to talk a little bit about ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 29, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-8703 WESTERN DIGITAL CORPORATION (Exact Name of Registrant as Specified in Its Charter) (State or other jurisdiction of 5601 ...

Western Digital Corporation (NASDAQ:WDC) Q1 2024 Earnings Conference Call October 30, 2023 8:30 AM ET Company Participants Peter Andrew - Vice President, Financial Planning and Analyst and Investor Relations David Goeckeler - Chief Executive Officer Wissam Jabre - Chief Financial Officer Conference Call Participants Joe Moore - Morgan Stanley Aaron Rakers - Wells Fargo Krish Sankar - TD Cowen Wamsi Mohan - Bank of America Sidney Ho - Deutsche Bank Tom O'Malley - Barclays Srini Pajjuri - Raymond James Karl A ...

Fiscal First Quarter 2024 Financial Results Western Digital October 30, 2023 2 © 2023 Western Digital Corporation or its affiliates All rights reserved Forward Looking Statements SAFE HARBOR ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-8703 WESTERN DIGITAL CORPORATION (Exact Name of Registrant as Specified in Its Charter) (State or other jurisdiction of 5601 Great Oaks Pa ...

Financial Performance - Revenue for Q3 2023 decreased by 36% to $2.803 billion compared to $4.381 billion in Q3 2022[182] - Gross profit declined by 76% to $286 million, with a gross margin of 10.2% in Q3 2023[182] - Operating loss of $472 million in Q3 2023, compared to an operating income of $324 million in Q3 2022[182] - Net loss attributable to common shareholders was $581 million in Q3 2023, a significant decline from a net income of $25 million in Q3 2022[182] - Consolidated net revenue decreased by $4.619 billion (32%) for the nine months ended March 31, 2023 compared to the prior year, driven by a 36% decline in Flash revenue and a 28% decline in HDD revenue[183][188] - Flash revenue decreased 42% and 36% for the three and nine months ended March 31, 2023, respectively, primarily due to a decline in average selling prices per gigabyte[188] - HDD revenue decreased 30% and 28% for the three and nine months ended March 31, 2023, respectively, primarily due to a 23% and 22% decline in exabytes shipped[188] - Cloud revenue decreased 32% for the nine months ended March 31, 2023, driven by reduced customer purchases to right-size inventories and lower flash-based product pricing[189] - Client revenue decreased 39% for the nine months ended March 31, 2023, driven by pricing pressure across Flash and declines in client SSD and HDD shipments for PC applications[189] - Consumer revenue decreased 28% for the nine months ended March 31, 2023, primarily due to a decrease in average selling price per gigabyte in Flash and lower retail HDD shipments[189] - Consolidated gross profit decreased by $2.63 billion for the nine months ended March 31, 2023, with gross margin declining 12.4 percentage points, primarily driven by lower Flash average selling prices[195] - Flash gross margin decreased by 23.5 percentage points year-over-year, substantially driven by lower average selling prices per gigabyte[195] - HDD gross margin decreased by 4.9 percentage points year-over-year, with approximately 3 percentage points due to manufacturing underutilization charges[195] - Income before taxes was a loss of $529 million for the three months and $830 million for the nine months ended March 31, 2023, compared to gains of $262 million and $1.612 billion in the prior year periods[202] - Effective tax rate was -8% for the three months and -19% for the nine months ended March 31, 2023, influenced by jurisdictional earnings mix and tax holidays[202] Operational Costs and Expenses - The company incurred $40 million in employee termination, asset impairment, and other charges in Q3 2023[182] - Research and development expense decreased $174 million for the nine months ended March 31, 2023, primarily due to reductions in variable compensation expenses and material use[196] - SG&A expenses decreased by $39 million for the three months and $112 million for the nine months ended March 31, 2023, driven by reductions in headcount, variable compensation, and material use[197] - Employee termination, asset impairment, and other charges increased by $36 million for the three months and $116 million for the nine months ended March 31, 2023, due to restructuring actions[197] - Net interest and other expense decreased by $5 million for the three months and $22 million for the nine months ended March 31, 2023, reflecting higher interest income and lower interest expense[199] Cash Flow and Capital Expenditures - Net cash used in operating activities was $340 million for the nine months ended March 31, 2023, compared to $1.585 billion provided in the prior year period[206] - Capital expenditures for 2023 are expected to be $2.2 billion, with net cash used for property, plant, and equipment expected to be $800 million[208] - Cash and cash equivalents held by foreign subsidiaries totaled $1.86 billion as of March 31, 2023, with no material tax consequences on repatriation[210] - Cash conversion cycle increased to 139 days for the three months ended March 31, 2023, from 90 days in the prior year period, driven by increases in DSO and DIO[212] - Net cash provided by financing activities was $856 million for the nine months ended March 31, 2023, primarily from the issuance of Series A Preferred Stock[215] Debt and Financial Obligations - Total long-term debt, including current portion, is $7.1 billion, with $4.738 billion due in 2026-2027 and $999 million beyond 2027[220] - Interest on debt totals $1.18 billion, with $629 million due in 2024-2025 and $401 million in 2026-2027[220] - Flash Ventures related commitments amount to $4.616 billion, with $2.48 billion due in 2024-2025 and $1.041 billion in 2026-2027[220] - Mandatory Deemed Repatriation Tax liability is $661 million, with $257 million due in 2026[224] - Unrecognized tax benefits liability is $1.02 billion, with $280 million in accrued interest and penalties[225] - The company expects to pay $620-650 million in tax and interest for years 2008-2012 and $100-110 million for years 2013-2015[226] - The company has $2.25 billion available for borrowing under its revolving credit facility until January 2027[220] - The outstanding balance on the company's Term Loan A-2 is $2.7 billion, and a 1% increase in the variable rate would increase annual interest expense by $27 million[239] Strategic Initiatives and Business Review - Western Digital's BiCS6-based products achieved cost crossover in Q3 2023, and the company announced the next-generation BiCS8 node[176] - The company is reviewing strategic alternatives, including the potential separation of its Flash and HDD business units[174] - Western Digital amended its loan agreement in December 2022 to provide additional financial flexibility, with cash and cash equivalents plus available unused capacity exceeding $1 billion as of March 31, 2023[178] - The company issued 900,000 shares of Series A Preferred Stock for $900 million on January 31, 2023[179] - The company has authorized a stock repurchase program of up to $5.0 billion, with $4.5 billion remaining available as of March 31, 2023[232] - The company issued 900,000 shares of Series A Preferred Stock for $900 million, entitled to cumulative preferred dividends[221] - The company has a stock repurchase program authorized for up to $5.0 billion, with $4.5 billion remaining as of March 31, 2023[232] Risk Factors and Contingencies - A network security incident in March 2023 resulted in disruptions to business operations, but the financial impact is not expected to be material[170][171] - A 10% adverse movement in foreign currency exchange rates would result in a foreign exchange fair value loss of $294 million[238] - A hypothetical 10% adverse movement in foreign currency exchange rates would result in a foreign exchange fair value loss of $294 million at March 31, 2023[238]