Information Abstract

• Fourth quarter income was $4.53 billion, down 8% year-over-year (YoY). Cloud income elevated 5%, Shopper income declined 14%, and Shopper income declined 23% YoY. Fiscal 12 months 2022 income was $18.79 billion, up 11% YoY.

• Fourth quarter GAAP earnings per share (EPS) was $0.95 and Non-GAAP EPS was $1.78. Fiscal 12 months 2022 GAAP EPS was $4.75 and non-GAAP EPS was $8.22.

• Generated working money stream of $295 million and free money stream of $(97) million within the fourth quarter. Generated working money stream of $1.88 billion and free money stream of $0.68 billion in fiscal 12 months 2022.

• Anticipate fiscal first quarter 2023 income to be within the vary of $3.60 billion to $3.80 billion with Non-GAAP EPS within the vary of $0.35 to $0.65.

SAN JOSE, Calif., August 05, 2022–(BUSINESS WIRE)–Western Digital Corp. (Nasdaq: WDC) in the present day reported fiscal fourth quarter and monetary 12 months 2022 monetary outcomes.

“I’m pleased with our group for driving sturdy fiscal 12 months 2022 efficiency, throughout which income grew 11% and non-GAAP EPS elevated 81%, demonstrating progress in unlocking the earnings potential of our enterprise,” stated David Goeckeler, Western Digital CEO. “Along with sturdy monetary efficiency, fiscal 12 months 2022 was a trademark 12 months for Western Digital from an innovation, product improvement and execution perspective. The mix of our innovation engine and the a number of channels to ship our merchandise to the market places Western Digital in an excellent place to capitalize on the big and rising alternatives in storage forward even within the midst of macro dynamics weighing on near-term demand.”

* not a significant determine

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The corporate generated $295 million in money stream from operations, made a scheduled and discretionary debt reimbursement of $150 million and ended the quarter with $2.33 billion of complete money and money equivalents.

Further particulars might be discovered inside the firm’s earnings presentation, which is accessible on-line at investor.wdc.com.

Finish Market Abstract

Within the fiscal fourth quarter:

• Cloud represented 46% of complete income. Inside Cloud, the continued ramp of our 18-terabyte and 20-terabyte drives drove a 7% year-over-year improve in nearline HDD income. In Flash, enterprise SSD income greater than doubled sequentially and was up 38% year-over-year.

• Shopper represented 36% of complete income. On each a sequential and year-over-year foundation, shopper HDD led the income decline whereas Flash was roughly flat.

• Shopper represented 18% of income. On a sequential foundation, the income decline was primarily on account of decrease retail HDD shipments. The year-over-year lower was on account of broad-based decline in retail merchandise throughout HDD and Flash.

In fiscal 12 months 2022:

• Cloud represented 42% of complete income. The income improve was led by a 38% improve in nearline HDD whereas Flash merchandise for enterprise SSD purposes greater than doubled.

• Shopper represented 38% of complete income. Income declined modestly as progress in Flash was offset by a mid-30% lower in shopper HDD.

• Shopper represented 20% of complete income. The income decline was all attributed to retail HDD.

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(1) Non-GAAP gross margin steerage excludes stock-based compensation expense of roughly $10 million to $15 million. The corporate’s Non-GAAP working bills steerage excludes amortization of acquired intangible property and stock-based compensation expense, totaling roughly $100 million to $120 million. Within the mixture, Non-GAAP diluted earnings per share steerage excludes these things totaling $110 million to $135 million. The timing and quantity of those fees excluded from Non-GAAP gross margin, Non-GAAP working bills, and Non-GAAP diluted earnings per share can’t be additional allotted or quantified with certainty. Moreover, the timing and quantity of further fees the corporate excludes from its Non-GAAP tax fee and Non-GAAP diluted earnings per share are depending on the timing and willpower of sure actions and can’t be fairly predicted. Accordingly, full reconciliations of Non-GAAP gross margin, Non-GAAP working bills, Non-GAAP tax fee and Non-GAAP diluted earnings per share to probably the most instantly comparable GAAP monetary measures (gross margin, working bills, tax fee and diluted earnings per share, respectively) usually are not accessible with out unreasonable effort.

(2) The Non-GAAP tax fee offered relies on a proportion of Non-GAAP pre-tax earnings. Resulting from variations within the tax therapy of things excluded from our Non-GAAP internet earnings and since our tax fee relies on an estimated forecasted annual GAAP tax fee, our estimated Non-GAAP tax fee might differ from our GAAP tax fee and from our precise tax charges. Tax regulation modifications that turned efficient for our fiscal 12 months 2023 require the capitalization of sure R&D prices that have been beforehand eligible for speedy deduction from taxable earnings. The impression of those tax regulation modifications is anticipated to incorporate an instantaneous improve in our tax fee of roughly 12 proportion factors, which is mirrored within the steerage offered within the desk above. This impression on the tax fee is anticipated to lower regularly over time.

Investor Communications

The funding group convention name to debate these outcomes and the corporate’s enterprise outlook for the fiscal first quarter of 2023 shall be broadcast dwell on-line in the present day at 5:30 a.m. Pacific/8:30 a.m. Japanese. The dwell and archived convention name/webcast and the earnings presentation might be accessed on-line at investor.wdc.com.

About Western Digital

Western Digital is on a mission to unlock the potential of information by harnessing the likelihood to make use of it. With Flash and HDD franchises, underpinned by developments in reminiscence applied sciences, we create breakthrough improvements and highly effective information storage options that allow the world to actualize its aspirations. Core to our values, we acknowledge the urgency to fight local weather change and have dedicated to formidable carbon discount objectives accepted by the Science Based mostly Targets initiative. Study extra about Western Digital and the Western Digital®, SanDisk® and WD® manufacturers at www.westerndigital.com.

Ahead-Wanting Statements

This press launch incorporates forward-looking statements inside the which means of federal securities legal guidelines, together with statements concerning expectations for the corporate’s enterprise outlook and monetary efficiency for the fiscal first quarter of 2023; demand tendencies, and market circumstances; and the potential for the corporate’s innovation engine and a number of channels to market to drive future efficiency. These forward-looking statements are based mostly on administration’s present expectations and are topic to dangers and uncertainties that might trigger precise outcomes to vary materially from these expressed or implied within the forward-looking statements. The preliminary monetary outcomes for the corporate’s fiscal fourth quarter ended July 1, 2022 and monetary 12 months 2022 included on this press launch symbolize probably the most present data accessible to administration. The corporate’s precise outcomes when disclosed in its Type 10-Ok might differ from these preliminary outcomes because of the completion of the corporate’s monetary closing procedures; closing changes; completion of the assessment and audit by the corporate’s unbiased registered accounting agency; and different developments that will come up between now and the disclosure of the ultimate outcomes. Different dangers and uncertainties that might trigger precise outcomes to vary materially from these expressed or implied within the forward-looking statements embody: future responses to and results of the COVID-19 pandemic; volatility in international financial circumstances; impression of enterprise and market circumstances; the end result and impression of our ongoing strategic assessment, together with with respect to buyer and provider relationships, regulatory and contractual restrictions, inventory value volatility and the diversion of administration’s consideration from ongoing enterprise operations and alternatives; impression of aggressive merchandise and pricing; our improvement and introduction of merchandise based mostly on new applied sciences and enlargement into new information storage markets; dangers related to price saving initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and our strategic relationships; difficulties or delays in manufacturing or different provide chain disruptions; hiring and retention of key staff; our degree of debt and different monetary obligations; modifications to {our relationships} with key prospects; disruptions in operations from cybersecurity incidents or different system safety dangers; actions by opponents; dangers related to compliance with altering authorized and regulatory necessities and the end result of authorized proceedings; and different dangers and uncertainties listed within the firm’s filings with the Securities and Change Fee (the “SEC”), together with the corporate’s Type 10-Ok filed with the SEC on August 27, 2021, to which your consideration is directed. You shouldn’t place undue reliance on these forward-looking statements, which converse solely as of the date hereof, and the corporate undertakes no obligation to replace or revise these forward-looking statements to replicate new data or occasions, besides as required by regulation.

Western Digital, the Western Digital emblem, SanDisk and WD are registered logos or logos of Western Digital Company or its associates within the US and/or different international locations.