Wednesday, August 5th 2020

Western Digital Reports Fourth Quarter and Fiscal Year 2020 Financial Results

Western Digital Corp. (Nasdaq: WDC) today reported fourth quarter and fiscal year 2020 financial results. "I am extremely proud of the way our team has navigated the complexities and uncertainties inherent in this unprecedented environment, as we continue to adapt to provide supply continuity and high-quality products to our customers and drive value for our shareholders," said David Goeckeler, Western Digital CEO. "While we continue to navigate through a dynamic environment, we remain focused on managing the business for the long-term, including ramping two important product lines to high volume: our SSD products and our energy-assisted capacity enterprise drives. We will continue to deliver the quality, performance and cost-effectiveness our customers rely on, and I am confident that our end market diversity and breadth, broad customer base, channel reach, and innovative leadership all position Western Digital to benefit from the multi-year growth in data creation and storage."

In the fourth quarter of fiscal 2020, Western Digital's revenue increased 18% year-over-year to $4.3 billion, led by strength within Data Center Devices & Solutions and Client Devices end markets.
In Client Devices, Western Digital's robust family of client SSDs, which are ideally suited for remote learning and work from home applications, achieved another record quarter of revenue. Notebook and desktop-related hard drive revenue declined slightly sequentially as the market continued to transition to SSD-based products. Smart video was weaker than expected due to continued headwinds associated with the pandemic. In gaming, Western Digital began shipping flash solutions for the upcoming new game console launches.

In Data Center Devices & Solutions, cloud demand increased in the quarter due to the work from home trend. Western Digital was the first in the industry to ship energy-assisted drives for mass production and the Company expects a strong ramp into the second fiscal quarter and beyond. In addition, Western Digital's innovative flash-based enterprise SSDs more than doubled in revenue from a year ago.

In Client Solutions, while Western Digital has a robust distribution channel with over 350,000 points of purchase around the world and well-established brands, the Company was impacted by COVID-related lockdowns at many brick-and-mortar customers. This business recovered as the quarter progressed due to easing of lockdowns and a transition to online buying with curbside pickup.

Investor Communications
The investment community conference call to discuss these results and the company's business outlook for the fourth quarter and fiscal year 2020 will be broadcast live online today at 1:30 p.m. Pacific/4:30 p.m. Eastern. The live and archived conference call/webcast and the earnings presentation can be accessed online at investor.wdc.com.
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