Western Digital said its Board of Directors completed its strategic review and authorized the company to pursue a plan to separate its HDD and Flash business units into two independent public companies on October 30, 2023. The company said it is targeting completion of the separation in the second half of calendar 2024, and cited conditions that remain, including final approval by the Board.

1. 01

   Western Digital said its Board of Directors completed its strategic review and authorized the company to pursue a plan to separate its HDD and Flash business units into two independent public companies on October 30, 2023. The company said it is targeting completion of the separation in the second half of calendar 2024, and cited conditions that remain, including final approval by the Board.

2. 02

   The company issued $1.60 billion of 3.00% convertible senior notes due 2028 on November 3, 2023, receiving net proceeds of about $1.56 billion. It used the proceeds to repurchase about $508 million of its 2024 convertible notes and settled the remaining 2024 convertible notes in cash on February 1, 2024, paying principal of $592 million plus interest.

3. 03

   Western Digital said consolidated gross profit decreased by $36 million for the 3 months ended December 29, 2023 compared with the prior-year period. The company cited unabsorbed manufacturing overhead costs of about $156 million ($107 million in Flash and $49 million in HDD) from reduced utilization, and a $36 million recovery from insurance carriers.

4. 04

   The company said it paid $363 million in taxes and $160 million in interest for years 2008 to 2012 during the 6 months ended December 29, 2023. The company said the remaining liability for all years from 2008 to 2015 was $187 million as of the same date and that it expects to pay the balance within the next 12 months.

Key figures

Quarter ended December 29, 2023

Revenue

$3.0B

Operating income

−$210M

Net income

−$287M

EPS

−$0.93

Gross profit

$492M

Analysis scope · Management's discussion (MD&A)We analyzed excerpts of the Management's Discussion and Analysis (MD&A) section (with omissions). Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.