Western Digital posted a first quarter loss of A$843 million and has predicted an even bigger loss for the current quarter.
The company’s revenue dropped 10 per cent to A$4.3 billion for the quarter, compared to A$6.46 billion the year prior.
The adjusted loss of A$843 million is compared to a A$36.8 million profit a year earlier.
These losses were better than feared by Wall Street analysts, although stock dipped by 2 per cent upon the lacklustre guidance.
Western Digital forecast an even more dire June quarter, with losses expected to land at between $2.80 and $3.24 a share, with revenue of A$3.5 billion to A$3.8 billion.
“The groundwork we laid, combined with the actions we have taken since the beginning of this fiscal year to right-size and refocus our businesses, have enabled us to navigate a dynamic environment,” said David Goeckeler, Western Digital chief executive, in a statement.
“I am pleased that we delivered non-GAAP gross margin at the higher end of our guidance range due to strong execution across both our HDD and Flash businesses.”
Despite this, Goeckeler noted a “more elongated customer inventory correction” was on the cards, and the entire memory market takes longer than expected to recover.
