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Western Digital Corporation (WDC-0.55%) has submitted its 10-Q filing for the quarterly period ended December 27, 2024.
The filing reports a net revenue of $4.285 billion for the three months ended December 27, 2024, an increase from $3.032 billion in the same period the previous year. The increase is attributed to higher shipments and improved pricing in both HDD and Flash segments.
HDD revenue rose by 76% year-over-year, driven by a 93% increase in exabytes sold, primarily from higher shipments of high-capacity enterprise drives. Flash revenue increased by 13%, reflecting a 14% increase in average selling prices per gigabyte.
Cloud revenue increased by 119% due to a 114% increase in exabytes sold and a 4% increase in average selling prices per gigabyte. Client revenue increased by 4%, while Consumer revenue decreased by 8% compared to the previous year.
Gross profit for the quarter was $1.516 billion, up from $492 million in the previous year, with a gross margin increase to 35.4% from 16.2% in the prior year.
Operating expenses for the quarter were $664 million, a decrease from $702 million in the previous year. This included $113 million gain on business divestiture and $44 million in business separation costs.
Net income for the quarter was $594 million, compared to a net loss of $287 million in the previous year. Net income attributable to common shareholders was $581 million, up from a loss of $301 million.
The company reported cash provided by operating activities of $437 million, while cash used in investing and financing activities were $78 million and $103 million, respectively.
Western Digital continues to progress on its plan to separate its HDD and Flash business units into two independent public companies, with the separation expected to occur in February 2025.
The filing also details various financial agreements, including the issuance of $1.60 billion in convertible senior notes and the sale of a majority interest in a subsidiary, resulting in a pre-tax gain of $113 million.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Western Digital Corporation quarterly 10-Q report dated January 31, 2025. To report an error, please email earnings@qz.com.