Tue, Aug 20, 10:01 AM (147 days ago)
Western Digital Corporation (WDC) reported a fiscal year 2024 net revenue of $13,003 million, a 6% increase from $12,318 million in 2023, driven by improved supply-demand dynamics and increased exabytes sold. However, the company experienced a net loss of $798 million, compared to a loss of $1,684 million in the previous year. Operating expenses were $3,262 million, with significant charges related to litigation ($291 million) and business separation costs ($97 million). The gross margin improved to 22.6% from 15.3% in 2023, attributed to cost efficiencies and a favorable product mix. WDC is pursuing a strategic separation of its HDD and Flash business units, expected to be completed by the end of 2024, aiming to enhance operational efficiency. The company faces risks from macroeconomic conditions, including inflation and interest rate pressures, and is managing its capital expenditures cautiously, reducing them significantly from previous years. In financing, WDC issued $1.6 billion in convertible senior notes and repurchased $508 million of its existing notes. The company’s total debt stood at $7,488 million as of June 28, 2024, with ongoing compliance with financial covenants.