Tech
Western Digital: Flash price declines hamper strong Q1
Western Digital will cut flash capacity to better align with market demand and falling prices.
Western Digital saw strong first quarter demand from its enterprise and surveillance hard drives, but gains were offset by falling flash memory prices.
The company met expectations with non-GAAP first quarter earnings of $3.04 a share, but revenue of $5 billion was off the estimate of $5.14 billion. The company reported net income of $511 million, or $1.71 a share.
Steve Milligan, CEO of Western Digital, said the results "reflected strength in capacity enterprise, surveillance hard drives and embedded flash solutions, with each growing revenue over 30% from the year-ago quarter." But declines in flash pricing hurt the company.
The company added that it is taking "immediate actions" to curb manufacturing to meet demand.