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$WDC Form 4: On June 19, 2015, Stephen Milligan, CEO, exercised 7,713 and 6,163 stock options and acquired the same numbers of shares at $38.19 and $43.11 respectively; and disposed of 13,876 shares of Common Stock in multiple transactions at prices ranging from $91.12-92.15. Post transaction, Stephen now owns 105,055 shares of Common Stock.
$WDC said in terms of the enterprise SSD product portfolio, the execution and expansion would happen in 2018 largely and also towards the mid to second half of 2018. The company believes there is more to do at the product level which is expected to become more meaningful as the year progresses.
In 2Q18, $WDC booked a provisional net tax charge of $1.6Bil due primarily to the one-time mandatory deemed repatriation tax. The payment of this repatriation tax will be spread over the next eight years, which is expected to begin in FY19 with approx. 60% due in the last three years of the period.
During 2Q18, in Client Devices, $WDC’s revenue grew nicely from 2Q17, driven most notably by demand for its embedded flash and client SSD products. The company saw strong demand for its products in growth areas such as connected home, surveillance and industrial verticals. In Data Center Devices, demand for capacity enterprise drives was strong.
For 2Q18, $WDC posted revenues of $2.6Bil in its Client Devices segment compared to $2.4Bil in 2Q17. In Client Solutions, revenues were $1.2Bil versus $1Bil in the prior-year period. In Data Center Devices & Solutions, revenues totaled $1.4Bil, an increase from $1.3Bil in 2Q17.
$WDC reported a net loss of $823MM or $2.78 per share in 2Q18 compared to a net income of $235MM or $0.80 per share in 2Q17. Net loss includes a provisional net tax charge of $1.6Bil primarily due to the repatriation tax as a result of the Tax Cuts and Jobs Act. Revenues rose to $5.3Bil from $4.9Bil last year.
Looking ahead into FY18, $WDC is comfortable with the placement of its bit output in the various market segments. The company believes there is sufficient demand to consume its bit output. Relative to the mix and penetration of SSD, $WDC believes it is slightly slow based upon NAND constraints at an industry basis.
During 1Q18, $WDC’s Client Devices segment revenue grew nicely from 1Q17, driven by increased demand for embedded flash products and client SSDs. Client Solutions revenue grew strongly from the prior year, driven by the diversity of the portfolio of HDD and flash-based products. Data Center Devices and Solutions revenue remained flat vs. 1Q17.
$WDC maintains that the proposed sale of Toshiba’s flash memory business unit to a consortium led by Bain Capital cannot be permitted without $WDC’s consent. The company expects a ruling by the arbitration panel in the first part of 2018 in advance of Toshiba’s announced timeframe to close the proposed transaction.
$WDC reported a net income of $681MM or $2.23 per share for 1Q18 compared to a net loss of $366MM or $1.28 per share in 1Q17. The 1Q18 GAAP net income includes charges associated with acquisitions. Adjusted net income was $1.1Bil or $3.56 per share for 1Q18. Revenue grew to $5.2Bil from $4.7Bil last year.
$WDC said, as 2017 progresses, it anticipates the increased deployment of the 10-terabyte which the company feels comfortable with in terms of its current product capability as well as design win outlook across major consumers of this product. $WDC said it might also see the adoption of the 12-terabyte on a greater scale later in 2017.
$WDC said that it had three consecutive quarters of strong financial results since completing the SanDisk acquisition. The company also added that there was a good demand for all NAND based products and capacity enterprise and client hard drives in 1Q17.
$WDC, which recently relocated its headquarters from Irvine to San Jose, tripled its profit in 3Q17, aided by higher revenues. Net income surged to $248MM or $0.83 per share from $74MM or $0.32 per share in the prior year quarter. Revenue jumped 65% to $4.65Bil. Non-GAAP EPS rose 77% to $2.39.
CEO Steve Milligan said $WDC saw healthy demand for capacity enterprise hard drives, all NAND based products and hard drives in client applications. The company also achieved targeted cost and efficiency improvements and improved its liquidity position with continued strong cash flow performance, Milligan added.
Data storage giant $WDC reported a drop in 2Q17 earnings due to charges associated with its recent acquisitions. Net income fell to $235MM or $0.80 per share from $251MM or $1.07 per share last year. Revenue grew to $4.89Bil from $3.32Bil. Non-GAAP EPS increased to $2.30 from $1.72.
$WDC said it updated forecast for 2Q17 on continued strong acceptance from customers and favorable mix of its broad product portfolio, and solid execution in a favorable market environment. This includes contribution of incremental intellectual property revenue from new cross license agreement with Samsung Ltd.
$WDC now sees 2Q17 revenue of about $4.75Bil compared to its prior forecast of about flat with 1Q revenue of $4.7Bil. $WDC lifted non-GAAP EPS guidance to $2.10-2.15 from $1.85-1.95 and its non-GAAP gross margin growth forecast to about 36% from about 35%. $WDC still sees non-GAAP operating expenses of $805MM and net interest expense of $205MM.