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Western Digital
has seen small business ailments get “incrementally additional difficult” since the disk push and flash memory firm described economical final results in early August, CEO David Goeckeler explained at the
Goldman Sachs
know-how convention in San Francisco on Monday.
In reporting June quarter outcomes, Western Digital (ticker: WDC) experienced projected September quarter profits of $3.6 billion to $3.8 billion, and non-GAAP profit of 35 to 65 cents a share, which was perfectly underneath earlier expectations at the time. Road consensus estimates now simply call for $3.7 billion in income and altered revenue of 49 cents.
Even though Goeckeler did not provide a certain revision to the forecast, he claimed that Western Electronic has found a sharp erosion in pricing for NAND flash memory based mostly storage above the very last month.
He additional the pricing decline has been accompanied by declining NAND bit desire. Goeckeler also reported the organization is probable to thrust out the timing of its up coming NAND producing facility.
He also mentioned Western is starting off to see “caution” from “hyperscale” cloud prospects and that disorders in China proceed to be hard, with “no indicators of a comeback.”
That caution is regular with a new warning from
Seagate
(STX) on softening cloud need.
Western CFO Wissam Jabre mentioned that the firm experienced earlier targeted optimistic cost-free dollars circulation for the June 2023 fiscal calendar year, but that it will be “more tricky to attain,” with adverse absolutely free cash circulation for the yr a likelihood. He also explained the firm could be hard cash stream detrimental in the September quarter.
The executives didn’t supply any update on the company’s ongoing strategic review, which could include things like the separation of Western’s disk push and flash memory segments.
Western Digital shares on Monday were down .5%, to $43.57. The stock is down 34% for the 12 months.
Create to Eric J. Savitz at eric.savitz@barrons.com