Western Digital(WDC) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter revenue was $4.10 billion, up 9% sequentially and up 49% year-over-year[1][4] - GAAP earnings per share (EPS) was $1.35, up 1588% from $0.08 in the previous quarter[3][4] - Non-GAAP EPS was $1.78, up 24% from $1.44 in the previous quarter[3] - Operating income was $742 million, up 244% from $216 million in the previous quarter[3] - Total net revenue for the three months ended September 27, 2024, was $4,095 million, a significant increase from $2,750 million in the same period last year, representing a growth of 49%[16] - Operating income for the quarter was $742 million, a turnaround from an operating loss of $596 million in the same quarter last year[16] - Net income attributable to common shareholders was $481 million, compared to a net loss of $700 million in the prior year[16] - GAAP net income for September 2024 was $493 million, compared to a loss of $685 million in September 2023[20] - Non-GAAP net income for September 2024 was $648 million, up from a loss of $554 million in September 2023[20] - Non-GAAP diluted net income attributable to common shareholders was $634 million, compared to a loss of $569 million in the same period last year[20] Revenue Breakdown - Cloud revenue increased 17% sequentially and 153% year-over-year, representing 54% of total revenue[6][7] - The HDD segment generated $2,211 million in revenue, up from $1,194 million, while the Flash segment reported $1,884 million, down from $1,556 million[18] Cash Flow and Liquidity - The company had an operating cash inflow of $34 million and ended the quarter with $1.71 billion in cash and cash equivalents[4] - Cash and cash equivalents decreased to $1,705 million from $1,879 million at the end of the previous quarter[17] - Total current assets increased to $8,942 million from $8,060 million, driven by higher accounts receivable and inventories[14] - The company reported a significant improvement in cash flow from operations, generating $34 million compared to a cash outflow of $626 million in the same quarter last year[17] - Free cash flow for September 2024 was negative $14 million, a decrease from positive $282 million in the previous quarter[20] - Cash flow provided by operating activities was $34 million, down from $366 million in the previous quarter[20] Expenses and Costs - Operating expenses decreased by 29% sequentially to $809 million[3] - Research and development expenses rose to $519 million from $431 million, indicating a focus on innovation and new product development[16] - The company incurred $84 million in stock-based compensation expense for the quarter[20] - Business separation costs amounted to $43 million, reflecting the separation of HDD and Flash business units[20] - The company recognized $14 million in expenses related to a litigation matter during the quarter[20] Future Outlook - The company expects fiscal second quarter 2025 revenue to be in the range of $4.20 billion to $4.40 billion[1][8] Legal Matters - A jury returned a verdict in a patent infringement case against the company for $316 million, which is currently under evaluation[10] Profitability Metrics - Gross margin for the first quarter was 37.9%, up 2.0 percentage points from the previous quarter[3] - Gross profit for the same period was $1,551 million, compared to only $99 million in the prior year, resulting in a gross margin of 37.9%, up from 3.6%[16][18] - GAAP diluted income per share for September 2024 was $1.35, a significant increase from a loss of $2.17 in September 2023[20] - Non-GAAP diluted income per share for September 2024 was $1.78, compared to a loss of $1.76 in September 2023[20]