The following is a summary of the Western Digital Corporation (WDC) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Western Digital's Q3 revenue was reported at $3.5 billion, surpassing their predictions.

• Non-GAAP gross margin stood at 29.3%, and non-GAAP earnings per share were $0.63.

• Both HDD and Flash gross margins experienced a significant increase, up 6.8 and 32.4 percentage points year-over-year, respectively.

• Their total gross debt outstanding is reported to be $7.8 billion, while cash and cash equivalents are at $1.9 billion.

• A 13% sequential and 5% year-on-year rise in operating expenses were mainly driven by higher variable compensation associated with improved financial outcomes.

Business Progress:

• The separation of flash and HDD businesses, set to be completed in the second half of the calendar year.

• A recorded increase in demand in all major end markets; cloud revenue experienced a 29% growth, followed by a 20% growth in client revenue and a 17% in consumer revenue.

• A return in demand for enterprise SSD solutions was noticed, and the company is expecting to ship AI related applications in the second half of the year.

• Qualification for the newest high-performance PCIe Gen 5, BiCS 6-based enterprise SSD is underway at a hyperscaler, expected to ramp in the second half of the year.

• The company anticipates a continued rise in the demand for HDD and Flash, amidst the ongoing supply-constrained environment.

More details: Western Digital IR

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