Western Digital Q2 misses estimates

The company reported Q2 revenue of $4.2 billion, down from $5.3 billion from a year ago.

This microSD card crams 400GB of storage into your smartphone Western Digital just showed off “the world's highest-capacity” microSD card. The SanDisk Ultra microSDXC UHS-I crams 400GB of storage into your smartphone. It’s the highest-capacity microSD card for use in mobile devices. It can hold 40 hours of Full HD video and can transfer data at up to 100MBps. At that speed, you can move 1,200 3.5MB photos per minute over USB 3.0. The card is being aimed at Android smartphone and tablet users. It comes with a 10-year warranty and a US retail price of $249.99. Western Digital says its production processes allowed for more bits per die. Only two years ago, Western Digital's biggest microSD card stood at 200GB for $399. When the microSD card format first launched in 2004, it had 128MB of capacity.

Western Digital missed market estimates for its fiscal second quarter amid price uncertainty in the NAND flash market. The company on Thursday reported a net loss of $487 million, or $1.68 a share. Non-GAAP earnings were $1.45 per share on revenue of $4.2 billion, down from $5.3 billion from a year ago.

Also: Western Digital jumps into in-memory computing segment

Wall Street was looking for earnings of $1.49 a share on revenue of $4.25 billion. Shares of Western Digital fell nearly five percent in late trading.

Western Digital chief executive Steve Milligan pointed to "a softening business environment" that led to lower sales during the quarter. 

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"We are taking actions to better align our cost and expense structure to near-term business conditions while continuing to deliver innovative solutions to drive our future success," Milligan said. "We enter calendar 2019 with the strongest product portfolio in our history and confidence in our ability to capitalize on the long-term opportunities associated with data growth."


Elsewhere on the balance sheet, Western Digital said it generated approximately $469 million in cash from operations during the second quarter, down from $1.2 billion a year ago. It ended the quarter with $4.1 billion total cash, cash equivalents and available-for-sale securities.

Also: World's biggest hard drive: Meet Western Digital's 15TB monster

For Q3, Wall Street expects Western Digital to report revenue of $3.9 billion and Non-GAAP earnings of 98 cents per share.