Western Digital Corp posts wider Q2 loss, sees impact of structural changes


A Western Digital office building is shown in Irvine California U.S. January 24 2017.   REUTERSMike BlakeFile Photo

A Western Digital office building is shown in Irvine, California, U.S., January 24, 2017. REUTERS/Mike Blake/File Photo

(Reuters) - Data storage products maker Western Digital Corp posted a wider-than-expected quarterly adjusted loss on Thursday, due to the impact of structural changes the company implemented in its flash and HDD businesses.

Shares of the company were down about 4% in after-market trading.

Last quarter, the company said it would spin off its flash memory business, which has been grappling with a supply glut after talks of merging the unit with Japan's Kioxia stalled, by the second half of 2024.

The company said its second-quarter loss included $156 million of underutilization-related charges in Flash and HDD.

On an adjusted basis, the company reported a loss of 69 cents per share, missing analysts' average estimate of a loss of $1.31 per share, according to LSEG data.

Western Digital expects current-quarter adjusted profit ranging from a loss of $0.10 to a profit of $0.20 per share.

The company reported revenue of $3.03 billion for the quarter ended Dec. 29. Analysts had expected revenue of $3.39 billion.

SMARTER GAMING WITH CUTTING-EDGE HOME WI-FI

(Reporting by Tanya Jain in Bengaluru; Editing by Krishna Chandra Eluri)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Others Also Read


Want to listen to full audio?

Unlock unlimited access to enjoy personalise features on the TheStar.com.my

Already a member? Log In