January 29th, 2016 by Adam Armstrong
WDC Posts 2Q Earnings Seeing Revenue & Sales Down
WDC posted its second quarter earnings that were not as good as the company most likely hoped. While the news reported hasn’t been nearly as bad as say Nimble’s Q3 or Violin Memory’s Q3 it wasn’t nearly as positive as EMC’s 4Q and Full-Year earnings. It’s not all bad for Western Digital, in October they were given the go ahead to complete their integration of HGST by MOFCOM. And they acquired SanDisk for $19 billion.
As far as their results, WDC’s revenue for this quarter was $3.3 billion down from $3.9 billion this quarter last year. Their net income for this quarter was $251 million or $1.07 per share down from $438 million or $1.84 per share from a year ago. Looking at non-GAAP income WDC saw $374 million or $1.60 per share this quarter down from $539 million or $2.26 per share the year before. The company also reported $598 million in cash generated in the second quarter with WDC ending with total cash and cash equivalents of $5.4 billion. The company paid a cash dividend of $0.50 per share of it common stock that it paid out on Jan. 15, 2016.
Looking at WD’s sales there is a noted drop in both notebook and desktop HDDs. This quarter last year desktop sales were 15.375 million versus 12.458 million in this quarter, a drop of about 19%. A more severe drop is seen in notebook sales where they are at 15.318 million in this quarter and were at 21.178 million in this same quarter last year, a drop of almost 28%. Though the sales numbers are lower. CEO Steve Milligan stated that WDC reported revenue and earnings per share within their guidance range.
The earnings initially sent the stock down this morning but it has since recovered.