Western Digital Reports Fiscal Second Quarter 2023 Financial Results

Rhea-AI Summary

Western Digital reported second quarter 2023 revenues of $3.11 billion, at the high end of guidance, but experienced a 17% quarter-over-quarter decline. GAAP EPS was $(1.40) and Non-GAAP EPS was $(0.42), impacted by $100 million in underutilization charges related to HDD. The company forecasts third quarter revenue between $2.60 billion and $2.80 billion with Non-GAAP EPS expected to range from $(1.70) to $(1.40). Notably, the operating loss was $321 million GAAP and $119 million Non-GAAP, reflecting ongoing challenges in the flash price environment and cloud inventory adjustments.

Positive

• Revenue of $3.11 billion at high end of guidance.
• Generated $35 million in cash flow from operations.
• Total cash and cash equivalents of $1.87 billion.

Negative

• GAAP operating loss of $321 million.
• Revenue down 17% quarter-over-quarter and 36% year-over-year.
• GAAP EPS of $(1.40) and Non-GAAP EPS of $(0.42) reflect ongoing challenges.

News Summary

• Second quarter revenue was $3.11 billion, at the high end of the guidance range.
• Second quarter GAAP earnings per share (EPS) was $(1.40) and Non-GAAP EPS was $(0.42), which includes $100 million of underutilization related charges in HDD.
• Second quarter GAAP operating loss was $321 million and Non-GAAP operating loss was $119 million.
• Expect fiscal third quarter 2023 revenue to be in the range of $2.60 billion to $2.80 billion.
• Expect Non-GAAP EPS in the range of $(1.70) to $(1.40) which includes underutilization charges in flash and HDD totaling $250 million, with flash driven by a 30% reduction in wafer starts beginning in January.

SAN JOSE, Calif.--(BUSINESS WIRE)-- Western Digital Corp. (Nasdaq: WDC) today reported fiscal second quarter 2023 financial results.

“The Western Digital team delivered revenue at the high end of our guidance range, despite a challenging flash price environment and continued cloud inventory digestion,” said David Goeckeler, Western Digital CEO. “We continue to take action to reset the business in response to the post-pandemic environment by optimizing our cost structure and strengthening our liquidity. These actions, including strategically reducing our capital expenditures across both flash and HDD and our operating expenses, as well as amending our financial covenants and securing recent financings, will give us the financial flexibility and optionality to weather this cycle, while also positioning us to continue executing our product roadmap and furthering our technical leadership over the long term.”

Q2 2023 Financial Highlights
		GAAP										Non-GAAP
		Q2 2023				Q1 2023				Q/Q		Q2 2023				Q1 2023				Q/Q
Revenue ($M)		$	3,107			$	3,736			down 17%		$	3,107			$	3,736			down 17%
Gross Margin			17.0	%			26.3	%		down 9.3 ppt			17.4	%			26.7	%		down 9.3 ppt
Operating Expenses ($M)		$	849			$	823			up 3%		$	659			$	689			down 4%
Operating Income (Loss) ($M)		$	(321	)		$	158			*		$	(119	)		$	307			*
Net Income (Loss) ($M)		$	(446	)		$	27			*		$	(135	)		$	64			*
Earnings Per Share		$	(1.40	)		$	0.08			*		$	(0.42	)		$	0.20			*
* not a meaningful figure

		GAAP										Non-GAAP
		Q2 2023				Q2 2022				Y/Y		Q2 2023				Q2 2022				Y/Y
Revenue ($M)		$	3,107			$	4,833			down 36%		$	3,107			$	4,833			down 36%
Gross Margin			17.0	%			32.8	%		down 15.8 ppt			17.4	%			33.6	%		down 16.2 ppt
Operating Expenses ($M)		$	849			$	856			down 1%		$	659			$	741			down 11%
Operating Income (Loss) ($M)		$	(321	)		$	727			*		$	(119	)		$	882			*
Net Income (Loss) ($M)		$	(446	)		$	564			*		$	(135	)		$	724			*
Earnings Per Share		$	(1.40	)		$	1.79			*		$	(0.42	)		$	2.30			*
* not a meaningful figure

The company generated $35 million in cash flow from operations and ended the quarter with $1.87 billion of total cash and cash equivalents.

Additional details can be found within the company’s earnings presentation, which is accessible online at investor.wdc.com.

End Market Summary
Revenue ($M)		Q2 2023			Q1 2023			Q/Q		Q2 2022			Y/Y
Cloud		$	1,224		$	1,829		down 33%		$	1,920		down 36%
Client			1,089			1,229		down 11%			1,854		down 41%
Consumer			794			678		up 17%			1,059		down 25%
Total Revenue		$	3,107		$	3,736		down 17%		$	4,833		down 36%

In the fiscal second quarter:

• Cloud represented 39% of total revenue. Sequentially, declines in both capacity enterprise drives sold to Cloud customers and smart video customers were partly offset by an increase in flash shipments. The year-over-year decline was primarily due to inventory digestion in hard drives.
• Client represented 35% of total revenue. Sequentially, the decline was driven by pricing pressure across our flash products, which was partly offset by an increase in hard drive shipments. The year-over-year decline was also due to pricing pressure in flash as well as lower client SSD shipments for PC applications.
• Consumer represented 26% of revenue. Sequentially, the increase was driven by a seasonal uptick in both retail hard drives and flash. The year-over-year decline was driven by lower retail hard drive shipments and pricing pressure in flash.

Business Outlook for Fiscal Third Quarter of 2023
		Three Months Ending March 31, 2023
		GAAP(1)		Non-GAAP(1)
Revenue ($B)		$2.60 - $2.80		$2.60 - $2.80
Gross margin		8.4% - 10.5%		9.0% - 11.0%
Operating expenses ($M)		$710 - $730		$600 - $620
Interest and other expense, net ($M)		~$90		~$90
Tax expense ($M)(2)		N/A		$60 - $70
Diluted earnings per share		N/A		$(1.70) - $(1.40)
Diluted shares outstanding (in millions)		~319		~319

(1) Non-GAAP gross margin guidance excludes stock-based compensation expense of approximately $10 million to $15 million. The company’s Non-GAAP operating expenses guidance excludes amortization of acquired intangible assets and stock-based compensation expense, totaling approximately $100 million to $120 million. In the aggregate, Non-GAAP diluted earnings per share guidance excludes these items totaling $110 million to $135 million. The timing and amount of these charges excluded from Non-GAAP gross margin, Non-GAAP operating expenses, and Non-GAAP diluted earnings per share cannot be further allocated or quantified with certainty. Additionally, the timing and amount of additional charges the company excludes from its Non-GAAP tax expense and Non-GAAP diluted earnings per share are dependent on the timing and determination of certain actions and cannot be reasonably predicted. Accordingly, full reconciliations of Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP tax expense and Non-GAAP diluted earnings per share to the most directly comparable GAAP financial measures (income tax expense and diluted earnings per share, respectively) are not available without unreasonable effort.

(2) Due to differences in the tax treatment of items excluded from our Non-GAAP net income and because our GAAP taxes recorded in any interim period are dependent on the timing and determination of certain GAAP operating expenses, our estimated Non-GAAP tax dollars may differ from our GAAP tax dollars.

Investor Communications

The investment community conference call to discuss these results and the company’s business outlook for the fiscal third quarter of 2023 will be broadcast live online today at 1:30 p.m. Pacific/4:30 p.m. Eastern. The live and archived conference call/webcast and the earnings presentation can be accessed online at investor.wdc.com.

About Western Digital

Western Digital is on a mission to unlock the potential of data by harnessing the possibility to use it. With Flash and HDD franchises, underpinned by advancements in memory technologies, we create breakthrough innovations and powerful data storage solutions that enable the world to actualize its aspirations. Core to our values, we recognize the urgency to combat climate change and have committed to ambitious carbon reduction goals approved by the Science Based Targets initiative. Learn more about Western Digital and the Western Digital®, SanDisk® and WD® brands at www.westerndigital.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding expectations for the company’s business outlook and financial performance for both fiscal third quarter of 2023 and longer term; demand trends; market conditions; product innovations; market access; and cost reductions. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. The preliminary financial results for the company’s fiscal second quarter ended December 30, 2022 included in this press release represent the most current information available to management. The company’s actual results when disclosed in its Form 10-Q may differ from these preliminary results as a result of the completion of the company’s financial closing procedures; final adjustments; completion of the review by the company’s independent registered accounting firm; and other developments that may arise between now and the disclosure of the final results. Other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: volatility in global economic conditions; future responses to and effects of the COVID-19 pandemic or other similar global health crises; impact of business and market conditions; the outcome and impact of our ongoing strategic review, including with respect to customer and supplier relationships, regulatory and contractual restrictions, stock price volatility and the diversion of management's attention from ongoing business operations and opportunities; impact of competitive products and pricing; our development and introduction of products based on new technologies and expansion into new data storage markets; risks associated with cost saving initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and our strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; our level of debt and other financial obligations; changes to our relationships with key customers; disruptions in operations from cybersecurity incidents or other system security risks; actions by competitors; risks associated with compliance with changing legal and regulatory requirements and the outcome of legal proceedings; and other risks and uncertainties listed in the company’s filings with the Securities and Exchange Commission (the “SEC”), including the company’s Form 10-K filed with the SEC on August 25, 2022, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law.

Western Digital, the Western Digital logo, SanDisk and WD are registered trademarks or trademarks of Western Digital Corporation or its affiliates in the US and/or other countries.

WESTERN DIGITAL CORPORATION PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (in millions; unaudited; on a US GAAP basis)
	December 30, 2022			July 1, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	1,871		$	2,327
Accounts receivable, net		1,905			2,804
Inventories		3,773			3,638
Other current assets		832			684
Total current assets		8,381			9,453
Property, plant and equipment, net		3,688			3,670
Notes receivable and investments in Flash Ventures		1,357			1,396
Goodwill		10,041			10,041
Other intangible assets, net		135			213
Other non-current assets		1,445			1,486
Total assets	$	25,047		$	26,259
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,193		$	1,902
Accounts payable to related parties		368			320
Accrued expenses		1,410			1,636
Income taxes payable		1,025			869
Accrued compensation		348			510
Current portion of long-term debt		38			—
Total current liabilities		4,382			5,237
Long-term debt		7,033			7,022
Other liabilities		1,517			1,779
Total liabilities		12,932			14,038
Total shareholders’ equity		12,115			12,221
Total liabilities and shareholders’ equity	$	25,047		$	26,259

WESTERN DIGITAL CORPORATION PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in millions, except per share amounts; unaudited; on a US GAAP basis)
	Three Months Ended								Six Months Ended
	December 30, 2022				December 31, 2021				December 30, 2022				December 31, 2021
Revenue, net	$	3,107			$	4,833			$	6,843			$	9,884
Cost of revenue		2,579				3,250				5,334				6,636
Gross profit		528				1,583				1,509				3,248
Operating expenses:
Research and development		523				575				1,075				1,153
Selling, general and administrative		250				279				497				570
Employee termination, asset impairment and other charges		76				2				100				20
Total operating expenses		849				856				1,672				1,743
Operating income (loss)		(321	)			727				(163	)			1,505
Interest and other expense, net		(64	)			(81	)			(138	)			(155	)
Income (loss) before taxes		(385	)			646				(301	)			1,350
Income tax expense		61				82				118				176
Net income (loss)	$	(446	)		$	564			$	(419	)		$	1,174
Income (loss) per common share:
Basic	$	(1.40	)		$	1.81			$	(1.32	)		$	3.77
Diluted	$	(1.40	)		$	1.79			$	(1.32	)		$	3.73
Weighted average shares outstanding:
Basic		318				312				317				311
Diluted		318				315				317				315

WESTERN DIGITAL CORPORATION PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions; unaudited; on a US GAAP basis)
	Three Months Ended								Six Months Ended
	December 30, 2022				December 31, 2021				December 30, 2022				December 31, 2021
Operating Activities
Net income (loss)	$	(446	)		$	564			$	(419	)		$	1,174
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		214				242				430				492
Stock-based compensation		86				87				172				163
Deferred income taxes		67				11				25				38
Non-cash portion of asset impairment		15				—				15				—
Loss on disposal of assets		—				1				1				1
Amortization of debt issuance costs and discounts		2				11				5				21
Other non-cash operating activities, net		25				25				69				13
Changes in:
Accounts receivable, net		517				(298	)			899				(486	)
Inventories		89				(103	)			(135	)			(30	)
Accounts payable		(396	)			137				(521	)			96
Accounts payable to related parties		74				11				49				(9	)
Accrued expenses		(182	)			82				(226	)			81
Income taxes payable		39				1				156				(34	)
Accrued compensation		(58	)			1				(162	)			(66	)
Other assets and liabilities, net		(11	)			(106	)			(317	)			(267	)
Net cash provided by operating activities		35				666				41				1,187
Investing Activities
Purchases of property, plant and equipment, net		(258	)			(294	)			(578	)			(539	)
Activity related to Flash Ventures, net		(17	)			35				82				(17	)
Strategic Investments and other, net		17				2				14				(13	)
Net cash used in investing activities		(258	)			(257	)			(482	)			(569	)
Financing Activities
Employee stock plans, net		43				56				(7	)			(20	)
Repayment of debt and revolving credit facility, net		—				(1,214	)			—				(1,427	)
Debt issuance costs		(5	)			(9	)			(5	)			(9	)
Net cash provided by (used in) financing activities		38				(1,167	)			(12	)			(1,456	)
Effect of exchange rate changes on cash		7				(1	)			(3	)			(1	)
Net decrease in cash and cash equivalents		(178	)			(759	)			(456	)			(839	)
Cash and cash equivalents, beginning of period		2,049				3,290				2,327				3,370
Cash and cash equivalents, end of period	$	1,871			$	2,531			$	1,871			$	2,531

WESTERN DIGITAL CORPORATION Supplemental Operating Segment Results (in millions; except percentages; unaudited)
	Three Months Ended								Six Months Ended
	December 30, 2022				December 31, 2021				December 30, 2022				December 31, 2021
Net revenue:
Flash	$	1,657			$	2,620			$	3,379			$	5,110
HDD		1,450				2,213				3,464				4,774
Total net revenue	$	3,107			$	4,833			$	6,843			$	9,884
Gross profit:
Flash	$	240			$	946			$	662			$	1,867
HDD		300				677				874				1,469
Total gross profit for segments		540				1,623				1,536				3,336
Unallocated corporate items:
Stock-based compensation expense		(12	)			(14	)			(26	)			(23	)
Amortization of acquired intangible assets		—				(26	)			(1	)			(65	)
Total unallocated corporate items		(12	)			(40	)			(27	)			(88	)
Consolidated gross profit	$	528			$	1,583			$	1,509			$	3,248
Gross margin:
Flash		14.5	%			36.1	%			19.6	%			36.5	%
HDD		20.7	%			30.6	%			25.2	%			30.8	%
Total gross margin for segments		17.4	%			33.6	%			22.4	%			33.8	%
Consolidated gross margin		17.0	%			32.8	%			22.1	%			32.9	%

The Company manages and reports under two reportable segments: flash-based products (“Flash”) and hard disk drives (“HDD”). In the table above, total gross profit for segments and total gross margin for segments are Non-GAAP financial measures, which are also referred to herein as Non-GAAP gross profit and Non-GAAP gross margin, respectively.

WESTERN DIGITAL CORPORATION PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in millions; unaudited)
	Three Months Ended												Six Months Ended
	December 30, 2022				September 30, 2022				December 31, 2021				December 30, 2022				December 31, 2021
GAAP cost of revenue	$	2,579			$	2,755			$	3,250			$	5,334			$	6,636
Stock-based compensation expense		(12	)			(14	)			(14	)			(26	)			(23	)
Amortization of acquired intangible assets		—				(1	)			(26	)			(1	)			(65	)
Non-GAAP cost of revenue	$	2,567			$	2,740			$	3,210			$	5,307			$	6,548
GAAP gross profit	$	528			$	981			$	1,583			$	1,509			$	3,248
Stock-based compensation expense		12				14				14				26				23
Amortization of acquired intangible assets		—				1				26				1				65
Non-GAAP gross profit	$	540			$	996			$	1,623			$	1,536			$	3,336
GAAP operating expenses	$	849			$	823			$	856			$	1,672			$	1,743
Stock-based compensation expense		(74	)			(72	)			(73	)			(146	)			(140	)
Amortization of acquired intangible assets		(39	)			(38	)			(38	)			(77	)			(77	)
Employee termination, asset impairment and other charges		(76	)			(24	)			(2	)			(100	)			(20	)
Other		(1	)			—				(2	)			(1	)			(4	)
Non-GAAP operating expenses	$	659			$	689			$	741			$	1,348			$	1,502
GAAP operating income (loss)	$	(321	)		$	158			$	727			$	(163	)		$	1,505
Cost of revenue adjustments		12				15				40				27				88
Operating expense adjustments		190				134				115				324				241
Non-GAAP operating income (loss)	$	(119	)		$	307			$	882			$	188			$	1,834
GAAP interest and other expense, net	$	(64	)		$	(74	)		$	(81	)		$	(138	)		$	(155	)
Non-cash economic interest and Other		—				(1	)			13				(1	)			19
Non-GAAP interest and other expense, net	$	(64	)		$	(75	)		$	(68	)		$	(139	)		$	(136	)
GAAP income tax expense	$	61			$	57			$	82			$	118			$	176
Income tax adjustments		(109	)			111				8				2				11
Non-GAAP income tax expense	$	(48	)		$	168			$	90			$	120			$	187

WESTERN DIGITAL CORPORATION PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (in millions, except per share amounts; unaudited)
	Three Months Ended												Six Months Ended
	December 30, 2022				September 30, 2022				December 31, 2021				December 30, 2022				December 31, 2021
GAAP Net income (loss)	$	(446	)		$	27			$	564			$	(419	)		$	1,174
Stock-based compensation expense		86				86				87				172				163
Amortization of acquired intangible assets		39				39				64				78				142
Employee termination, asset impairment and other charges		76				24				2				100				20
Non-cash economic interest and Other		1				(1	)			15				—				23
Income tax adjustments		109				(111	)			(8	)			(2	)			(11	)
Non-GAAP net income (loss)	$	(135	)		$	64			$	724			$	(71	)		$	1,511
Diluted income (loss) per common share
GAAP	$	(1.40	)		$	0.08			$	1.79			$	(1.32	)		$	3.73
Non-GAAP	$	(0.42	)		$	0.20			$	2.30			$	(0.22	)		$	4.80
Diluted weighted average shares outstanding:
GAAP		318				319				315				317				315
Non-GAAP		318				319				315				317				315
Cash flows
Cash flow provided by operating activities	$	35			$	6			$	666			$	41			$	1,187
Purchases of property, plant and equipment, net		(258	)			(320	)			(294	)			(578	)			(539	)
Activity related to Flash Ventures, net		(17	)			99				35				82				(17	)
Free cash flow	$	(240	)		$	(215	)		$	407			$	(455	)		$	631

To supplement the condensed consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the table above sets forth Non-GAAP cost of revenue; Non-GAAP gross profit; Non-GAAP gross margin; Non-GAAP operating expenses; Non-GAAP operating income and loss; Non-GAAP interest and other expense, net; Non-GAAP income tax expense; Non-GAAP net income and loss; Non-GAAP diluted income and loss per common share and free cash flow (“Non-GAAP measures”). These Non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP and may be different from Non-GAAP measures used by other companies. The company believes the presentation of these Non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors for measuring the company’s earnings performance and comparing it against prior periods. Specifically, the company believes these Non-GAAP measures provide useful information to both management and investors as they exclude certain expenses, gains and losses that the company believes are not indicative of its core operating results or because they are consistent with the financial models and estimates published by many analysts who follow the company and its peers. As discussed further below, these Non-GAAP measures exclude, as applicable, stock-based compensation expense, amortization of acquired intangible assets, employee termination, asset impairment and other charges, non-cash economic interest, other adjustments, and income tax adjustments, and the company believes these measures along with the related reconciliations to the GAAP measures provide additional detail and comparability for assessing the company's results. These Non-GAAP measures are some of the primary indicators management uses for assessing the company's performance and planning and forecasting future periods. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

As described above, the company excludes the following items from its Non-GAAP measures:

Stock-based compensation expense. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the company's control, the company believes excluding stock-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time and compare it against the company's peers, a majority of whom also exclude stock-based compensation expense from their Non-GAAP results.

Amortization of acquired intangible assets. The company incurs expenses from the amortization of acquired intangible assets over their economic lives. Such charges are significantly impacted by the timing and magnitude of the company's acquisitions and any related impairment charges.

Employee termination, asset impairment and other charges. From time-to-time, in order to realign the company's operations with anticipated market demand or to achieve cost synergies from the integration of acquisitions, the company may terminate employees and/or restructure its operations. From time-to-time, the company may also incur charges from the impairment of intangible assets and other long-lived assets. In addition, the company may record credits related to gains upon sale of property due to restructuring or reversals of charges recorded in prior periods. These charges or credits are inconsistent in amount and frequency, and the company believes they are not indicative of the underlying performance of its business.

Non-cash economic interest. The company excludes non-cash economic interest expense associated with its convertible notes. These charges do not reflect the company's operating results, and the company believes they are not indicative of the underlying performance of its business.

Other adjustments. From time-to-time, the company incurs charges or gains that the company believes are not a part of the ongoing operation of its business. The resulting expense or benefit is inconsistent in amount and frequency.

Income tax adjustments. Income tax adjustments include the difference between income taxes based on a forecasted annual Non-GAAP tax rate and a forecasted annual GAAP tax rate as a result of the timing of certain Non-GAAP pre-tax adjustments. The income tax adjustments also include adjustments to estimates related to the current status of the rules and regulations governing the transition to the Tax Cuts and Jobs Act and the re-measurement of certain unrecognized tax benefits primarily related to tax positions taken in prior quarters, including interest. These adjustments are excluded because the company believes that they are not indicative of the underlying performance of its ongoing business.

Additionally, free cash flow is defined as cash flows provided by operating activities less purchases of property, plant and equipment, net, and the activity related to Flash Ventures, net. The company considers free cash flow generated in any period to be a useful indicator of cash that is available for strategic opportunities including, among others, investing in the company's business, making strategic acquisitions, repaying debt and strengthening the balance sheet.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230131005905/en/

Western Digital Corp.

Investor Contact:

T. Peter Andrew

949.672.9655

peter.andrew@wdc.com

investor@wdc.com

Media Contact:

Lisa Neitzel

408.717.7607

lisa.neitzel@wdc.com

Source: Western Digital Corp.

FAQ

What were Western Digital's Q2 2023 earnings results?

Western Digital reported Q2 2023 revenue of $3.11 billion, GAAP EPS of $(1.40), and Non-GAAP EPS of $(0.42).

What is Western Digital's outlook for Q3 2023?

The company expects Q3 2023 revenue to be between $2.60 billion and $2.80 billion, with Non-GAAP EPS between $(1.70) and $(1.40).

What challenges did Western Digital face in Q2 2023?

Western Digital faced a challenging flash price environment and continued cloud inventory digestion, leading to significant revenue declines.

How much cash does Western Digital have as of Q2 2023?

As of Q2 2023, Western Digital has total cash and cash equivalents of $1.87 billion.

What was the operating loss for Western Digital in Q2 2023?

Western Digital reported a GAAP operating loss of $321 million in Q2 2023.