Western Digital posts wider Q2 loss, sees impact of structural changes
DATA storage products maker Western Digital posted a wider-than-expected quarterly adjusted loss on Thursday (Jan 25), due to the impact of structural changes the company implemented in its flash and HDD businesses.
Shares of the company were down about 4 per cent in after-market trading.
Last quarter, the company said it would spin off its flash memory business, which has been grappling with a supply glut after talks of merging the unit with Japan’s Kioxia stalled, by the second half of 2024.
The company said its second-quarter loss included US$156 million of underutilisation-related charges in Flash and HDD.
On an adjusted basis, the company reported a loss of US 69 cents per share, missing analysts’ average estimate of a loss of US$1.31 per share, according to LSEG data.
Western Digital expects current-quarter adjusted profit ranging from a loss of US$0.10 to a profit of US$0.20 per share.
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The company reported revenue of US$3.03 billion for the quarter ended Dec 29. Analysts had expected revenue of US$3.39 billion. REUTERS
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