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Western Digital shipped a whole load of spinning bits into enterprise and hyperscale data centres in its third fiscal 2018 quarter, although overall disk units sold dropped 15.5 per cent on the year.
In the three months to March 30, revenues were a tidy $5bn, compared to $4.6bn a year ago, up 8 per cent, but seasonally down on the previous quarter's $5.3bn (5.7 per cent). Profit was $61m, just 1.2 per cent of turnover, and contrasting starkly with the year-ago $248m, a 75.4 per cent drop.
Debt - Costs - WD - Income
This was attributed to debt costs. WD says non-GAAP net income was $1.1bn, which excludes this, well up on the year-ago $716m.
The disk and SSD-flinger generated $1.0bn in cash from operations during the quarter, up 3 per cent year-on-year, ending with $5.1bn total cash, cash equivalents and available-for-sale securities. It recorded $3.3bn dollars in operating cash flow, an increase of 34 per cent.
Business - Segments - Data - Centre - Devices
Two of its three main business segments grew. Data Centre Devices and Solutions took in $1bn, up 25 per cent year-over-year. Client Solutions revenue was $1bn, an increase of 4 per cent year-over-year driven by hard drive and flash retail products. But Client Devices revenue of $2.3bn was essentially flat year-over-year.
The bulk of the Data Centre Devices business came from high-capacity disk drives and hyperscale data centre build-out, with SSDs playing a minor role, according to CEO Steve Milligan in the earnings call.
Milligan - Self-praise - Power - Agility - Platform
Milligan laid on the indirect self-praise: "The power and agility of our platform and our global team's sustained focus on operational execution drove another quarter of strong financial performance for Western Digital. We saw particular strength in our high-capacity enterprise hard drives, which achieved record quarterly revenue."
And so they did. Although total disk drive shipments were down 15.5 per cent annually to 36.4 million, enterprise drives at 7.6 million...
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