Satoshi Nakamoto Blog
Image default
ceo earnings Financial Results guidance Infra NEWS Q2 Q3 guidance revenue second quarter Steve milligan The-Latest Western Digital

Western Digital buoyed by improving flash market

Data storage company Western Digital Corp. benefited from an improving flash market and stronger demand for its hard drives to deliver second-quarter financial results today that topped Wall Street’s expectations.

The company reported a profit before certain costs such as stock compensation of 62 cents per share on revenue of $4.23 billion. Wall Street was looking for earnings of 58 cents per share on slightly lower revenue of $4.22 billion.

More important, perhaps, Western Digital reported a net loss of $139 million for the quarter, which is a big improvement from the same period a year ago, when it posted a $487 million net loss.

Western Digital had given shareholders the jitters three months ago when it announced during its fiscal first-quarter 2020 results that Chief Executive Officer Steve Milligan (pictured) is planning to step down from the role by September 2020. The company has been searching for his successor ever since, and although there was no update on that hunt, investors’ nerves appear to have been calmed anyway by today’s positive results. The company’s stock rose more than 7% in after-hours trading.

The positive reaction may have had something to do with the company’s guidance for the next quarter. Executives said they’re projecting third-quarter revenue of $4.1 billion to $4.3 billion, with a profit of 85 cents to $1.05 per share. Wall Street had earlier forecast revenue of $4.06 billion and a profit of 73 cents.

“The December quarter results reflect strong execution in our product roadmap, success in increasing our hard drive gross margin, and an improving flash market,” Milligan said in a statement. “We expect an accelerated recovery in our flash gross margins, which coupled with ongoing strength in demand for both hard drives and flash, positions us well for continued profitable growth in calendar year 2020.”

Officials added in a conference call that the company generated $257 million in cash from its operations during the quarter. It ended the three-month period with $3.1 billion in total cash and equivalents.

Photo: Fortune Live Media/Flickr

Since you’re here …

Show your support for our mission with our one-click subscription to our YouTube channel (below). The more subscribers we have, the more YouTube will suggest relevant enterprise and emerging technology content to you. Thanks!

Support our mission:    >>>>>>  SUBSCRIBE NOW >>>>>>  to our YouTube channel.

… We’d also like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of the content, not advertising. Unlike many online publications, we don’t have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.The journalism, reporting and commentary on SiliconANGLE — along with live, unscripted video from our Silicon Valley studio and globe-trotting video teams at theCUBE — take a lot of hard work, time and money. Keeping the quality high requires the support of sponsors who are aligned with our vision of ad-free journalism content.

If you like the reporting, video interviews and other ad-free content here, please take a moment to check out a sample of the video content supported by our sponsors, tweet your support, and keep coming back to SiliconANGLE.

Source link

Related posts

Bitcoin Price Watch: Can BTC Buyers Keep The Rally Going?Bitcoin Price Watch: Can BTC Buyers Keep The Rally Going?


Frank Chaparro: A Bitcoin ETF “Doesn’t Matter For The Price”


SpaceX to mature Starship Moon landing and orbital refueling tech with NASA’s help


Details Announced of Exhibition at North America’s Largest Executive Claims Event, Connected Claims USA 2019


Mt. Gox: Exchange’s key challenge was getting fiat, says Stellar’s Jed McCaleb


Israeli Regulator to Fast Track 2,000 Fintech License Applications