WD Revenue Down, But Profits Up
Western Digital has more than doubled its year-on-year operating income in the third quarter despite a small dip in revenue.
The digital storage giant recorded revenue of $4.1 billion USD ($5.3 billion AUD) in the third quarter, down one per cent from the same quarter in 2020; the company attributed this to a slowdown in Data Center Devices & Solutions, which was offset by stronger performance in consumer and gaming.
Despite the dip, the company nonetheless saw GAAP operating income more than double to $317 million USD ($411 million AUD) year-on-year, while net income shot up by over 1000 per cent to $197 million USD ($255 million AUD) year-on-year.
David Goeckeler, Western Digital CEO, said the result was driven by increasing momentum of energy-assisted drives as well as enterprise NVMe SSDs.
“Western Digital’s strengths in technology and cost leadership, expansive product portfolio and broad routes to market are providing a foundation upon which we are solidifying our position as an essential building block of the digital economy.
“These strengths, combined with our increased operational and strategic focus enabled by our new business unit structure, are driving results.
“As we continue to face a dynamic environment, we are seeing the benefits of the synergistic value in the breadth of Western Digital’s portfolio, and our unique ability to deliver both hard drive and flash solutions to our diverse end-markets and customer base,” he said.
While Data Center Devices and Solutions revenue declined 19 per cent, Client Devices revenue was up 10 per cent and Client Solutions up eight per cent year-on-year.