威騰電子 (WDC) 2021 Q1 法說會逐字稿

完整原文

使用警語:中文譯文來源為 Google 翻譯,僅供參考,實際內容請以英文原文為主

  • Operator

    Operator

  • Good afternoon, and thank you for standing by.

    下午好,感謝您的耐心等待。

  • Welcome to the Western Digital's First -- Fiscal First Quarter 2021 Conference Call.

    歡迎參加西部數據 2021 年第一財季電話會議。

  • (Operator Instructions) As a reminder, this call is being recorded.

    (操作員說明)謹此提醒,此通話正在錄音。

  • Now I will turn the call over to Mr. Peter Andrew.

    現在我將把電話轉給彼得·安德魯先生。

  • You may begin.

    你可以開始了。

  • T. Peter Andrew - VP of IR

    T. Peter Andrew - VP of IR

  • Thank you, Shannon, and good afternoon, everyone.

    謝謝香農,大家下午好。

  • Joining me today are David Goeckeler, Chief Executive Officer; and Bob Eulau, Chief Financial Officer.

    今天與我一起出席的是執行長 David Goeckeler;和財務長 Bob Eulau。

  • Before we begin, let me remind everyone that today's discussion contains forward-looking statements, including product portfolio expectations, business plans, trends and financial outlook based on management's current assumptions and expectations, and as such, does include risks and uncertainties.

    在開始之前,讓我提醒大家,今天的討論包含前瞻性陳述,包括基於管理層當前假設和預期的產品組合預期、業務計劃、趨勢和財務前景,因此確實包含風險和不確定性。

  • We assume no obligation to update these statements.

    我們不承擔更新這些聲明的義務。

  • Please refer to our most recent financial report on Form 10-Q filed with the SEC for more information on the risks and uncertainties that could cause actual results to differ materially.

    請參閱我們向 SEC 提交的最新 10-Q 表格財務報告,以了解有關可能導致實際結果出現重大差異的風險和不確定性的更多資訊。

  • We will also make references to non-GAAP financial measures today.

    今天我們也將提及非公認會計準則財務指標。

  • Reconciliations between the non-GAAP and comparable GAAP financial measures are included in the press release and other materials that are being posted in the Investor Relations section of our website.

    非公認會計原則和可比較公認會計原則財務指標之間的調節包含在我們網站投資者關係部分發布的新聞稿和其他資料中。

  • With that, I will now turn the call over to David for introductory remarks.

    現在,我將把電話轉給大衛進行介紹性發言。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Thanks, Peter, and thanks, everyone, for joining us to discuss our fiscal first quarter results.

    謝謝彼得,也謝謝大家加入我們討論我們第一季的業績。

  • I hope that you and your families are staying healthy and safe.

    我希望您和您的家人保持健康和安全。

  • Before we dive into our results, I'd like to take this opportunity to provide some color on our new business unit structure, which we announced in September.

    在我們深入研究結果之前,我想藉此機會介紹我們在 9 月宣布的新業務部門結構。

  • I have strong conviction in the market opportunity from rapid global adoption of the technology architecture built with cloud infrastructure tied to intelligent endpoints and connected by high-performance networks.

    我堅信全球範圍內快速採用與智慧端點相關並透過高效能網路連接的雲端基礎設施所建構的技術架構所帶來的市場機會。

  • The value and urgency of data storage at every point across this architecture has never been clearer.

    該架構中每個點的資料儲存的價值和緊迫性從未如此清晰。

  • Customers need solutions that can best address the requirements across a variety of use cases and end markets.

    客戶需要能夠最好地滿足各種用例和終端市場需求的解決方案。

  • The ability to capture this opportunity at every stage highlights the criticality of having a broad portfolio of both flash and hard drive products.

    在每個階段抓住這一機會的能力凸顯了擁有廣泛的快閃記憶體和硬碟產品組合的重要性。

  • We have the best and most comprehensive storage platform in the industry.

    我們擁有業界最好、最全面的儲存平台。

  • And I believe over the coming quarters, we will continue to see the compelling benefits of this strategy.

    我相信在接下來的幾個季度中,我們將繼續看到這項策略帶來的引人注目的好處。

  • In particular, there are significant operational and go-to-market synergies with our integrated flash and HDD portfolios, which are important competitive differentiators for WD.

    特別是,我們的整合快閃記憶體和 HDD 產品組合在營運和上市方面具有顯著的協同效應,這是 WD 的重要競爭優勢。

  • There is also a great deal of customer overlap between our flash and HDD businesses.

    我們的快閃記憶體和硬碟業務之間也存在大量客戶重疊。

  • And we believe our long-standing, deep and collaborative customer relationships will be a key factor in achieving strong performance over time.

    我們相信,隨著時間的推移,我們長期、深入和協作的客戶關係將成為強勁業績的關鍵因素。

  • A great example is that following the acquisition of SanDisk, we built on our strong HDD customer base to drive impressive adoption of SSD solutions on the client side.

    一個很好的例子是,在收購 SanDisk 後,我們建立了強大的 HDD 客戶群,以推動 SSD 解決方案在客戶端的廣泛採用。

  • As a result of our established trusted relationships, our HDD customers then turn to us to also provide them with flash solutions.

    由於我們建立了值得信賴的關係,我們的硬碟客戶隨後也向我們尋求快閃記憶體解決方案。

  • In fact, we now equip all of our top 20 customers with both flash and HDD products.

    事實上,我們現在為所有前 20 位客戶配備了快閃記憶體和 HDD 產品。

  • Our demonstrated ability to support our customers by providing a breadth of options that gives us confidence that we can do the same in the enterprise SSD space in the years ahead.

    我們展示了透過提供廣泛的選擇來支援客戶的能力,這讓我們相信我們可以在未來幾年在企業級 SSD 領域做同樣的事情。

  • Ultimately, we understand our customers' needs, and we can work with them to address their evolving and growing storage ecosystem to provide them with a wide range of solutions.

    最終,我們了解客戶的需求,並且可以與他們合作,解決他們不斷發展和成長的儲存生態系統,為他們提供廣泛的解決方案。

  • At the same time, there are technical dynamics between flash and HDD that are very different.

    同時,快閃記憶體和 HDD 之間的技術動態也截然不同。

  • While we develop innovative compelling technologies in both areas, each requires separate dedicated focus on product development, technical strategy and execution on our road maps and product commitments.

    雖然我們在這兩個領域都開發了引人注目的創新技術,但每個領域都需要單獨專注於產品開發、技術策略以及路線圖和產品承諾的執行。

  • To that end, one of my first observations when I arrived at WD was that we could do a better job of capitalizing on these dynamics.

    為此,當我到達 WD 時,我的第一個觀察結果是我們可以更好地利用這些動力。

  • So to help us accelerate our strategy, we have created flash and HDD business units, each with a dedicated general manager.

    因此,為了幫助我們加速實施策略,我們創建了快閃記憶體和硬碟業務部門,每個部門都有專門的總經理。

  • This new structure is designed to accelerate growth and drive agility, sharper focus and business accountability throughout the organization.

    這個新結構旨在加速整個組織的成長並提高敏捷性、更清晰的焦點和業務責任。

  • Within each business unit, engineering and product management teams will be responsible for driving product strategy, roadmap and pricing with overall P&L responsibilities.

    在每個業務部門內,工程和產品管理團隊將負責推動產品策略、路線圖和定價,並承擔整體損益責任。

  • The GMs of each unit will work with their peers in operations, memory technology, sales, finance, legal and human resources to drive their businesses with accountability for results.

    每個部門的總經理將與營運、記憶技術、銷售、財務、法律和人力資源部門的同事合作,以對結果負責的方式推動業務發展。

  • As part of this reorganization, Rob Soderbery joined WD in September as Executive Vice President and General Manager of the new flash business unit.

    作為重組的一部分,Rob Soderbery 於 9 月加入 WD,擔任新快閃記憶體業務部門的執行副總裁兼總經理。

  • Rob is a 30-year technology industry veteran with outstanding experience leading enviable product franchises at scale and has deep technology and product management expertise.

    Rob 是一位擁有 30 年技術行業經驗的資深人士,在大規模領導令人羨慕的產品特許經營方面擁有豐富的經驗,並擁有深厚的技術和產品管理專業知識。

  • Earlier this afternoon, we announced that Ashley Gorakhpurwalla is joining us as Executive Vice President and General Manager of our HDD business unit.

    今天下午早些時候,我們宣布 Ashley Gorakhpurwalla 將加入我們,擔任硬碟業務部門的執行副總裁兼總經理。

  • Ashley brings 30 years of technology experience to the team and has spent the majority of his career at Dell Technologies and many different engineering and business leadership roles focused on complex data center infrastructure.

    Ashley 為團隊帶來了 30 年的技術經驗,他的大部分職業生涯都在 Dell Technologies 度過,並擔任過許多專注於複雜資料中心基礎設施的不同工程和業務領導職務。

  • Most recently, he was President and GM of Servers and Infrastructure Systems, where he had full P&L responsibility for a $20 billion business and a global team of 4,500 technologists.

    最近,他擔任伺服器和基礎設施系統部門的總裁兼總經理,全面負責價值 200 億美元的業務和由 4,500 名技術人員組成的全球團隊的損益。

  • We are thrilled to have both of these exceptional leaders on board.

    我們很高興有這兩位傑出的領導者加入。

  • Now turning to our financial results.

    現在轉向我們的財務表現。

  • In the first quarter, results were at the upper end of the guidance ranges we provided in August.

    第一季的業績處於我們 8 月提供的指導範圍的上限。

  • We reported revenue of $3.9 billion and non-GAAP earnings per share of $0.65.

    我們公佈的收入為 39 億美元,非 GAAP 每股收益為 0.65 美元。

  • Results were strengthened by retail where we are executing a compelling innovation story reinforced by our powerful brand recognition and reputation for exceptional performance.

    零售業的表現得到了加強,我們正在執行一個引人注目的創新故事,而我們強大的品牌認知度和卓越績效的聲譽又強化了這個故事。

  • Encouraging economic and market dynamics supported this performance as COVID restrictions eased during the period, while consumer flash pricing stabilized.

    在此期間,新冠疫情限制有所放鬆,同時消費者閃電定價也趨於穩定,令人鼓舞的經濟和市場動態支撐了這一業績。

  • In addition, continued work from home and distance learning trends drove some upside in hard drive demand for desktops and notebooks.

    此外,持續的在家工作和遠距學習趨勢推動了桌上型電腦和筆記型電腦的硬碟需求上升。

  • In general, some of the uncertainty we saw last quarter is starting to dissipate.

    總的來說,我們上季看到的一些不確定性正在開始消散。

  • For example, we have better clarity today on geopolitical dynamics, Huawei concerns and stability in consumer flash pricing.

    例如,我們今天對地緣政治動態、華為的擔憂以及消費者快閃記憶體定價的穩定性有了更清晰的了解。

  • We are also seeing positive indications around the progression of the 5G ramp and the growth of potential gaming -- the growth potential of gaming.

    我們也看到 5G 發展的進展和潛在遊戲的成長(遊戲的成長潛力)的積極跡象。

  • However, some near-term headwinds remain.

    然而,一些近期阻力仍然存在。

  • Demand trends continue to be mixed, and there have been recent COVID-related lockdowns and upsurges in several countries.

    需求趨勢持續參差不齊,最近多個國家出現了與新冠疫情相關的封鎖和激增。

  • While we are not out of the woods on these macro impacts, we are more optimistic than we were last quarter on some of these issues abating in calendar 2021.

    雖然我們尚未擺脫這些宏觀影響的困境,但我們對其中一些問題在 2021 年有所緩解的情況比上季度更加樂觀。

  • Turning to a recap of performance in our flash business.

    回顧一下我們快閃記憶體業務的業績。

  • Our broad flash product portfolio, technical leadership, deep customer relationships, extensive distribution channel and a low-cost architecture continue to differentiate us from our peers.

    我們廣泛的快閃記憶體產品組合、技術領先、深厚的客戶關係、廣泛的分銷管道和低成本架構繼續使我們在同行中脫穎而出。

  • Product highlights in the quarter included: within retail, we refreshed our entire SSD product line, including introducing the ArmorLock Security Platform.

    本季的產品亮點包括:在零售領域,我們更新了整個 SSD 產品線,包括推出 ArmorLock 安全平台。

  • ArmorLock is a data encryption platform featuring state-of-the-art security technology and ease of use in enabling secure storage.

    ArmorLock 是一個資料加密平台,具有最先進的安全技術和易於使用的安全儲存功能。

  • The first product to leverage this technology is the ArmorLock-encrypted NVMe SSD.

    第一個利用此技術的產品是 ArmorLock 加密的 NVMe SSD。

  • The initial reaction to this product has been terrific, particularly with professionals and content creators in the media and entertainment industry.

    該產品的最初反應非常好,尤其是媒體和娛樂行業的專業人士和內容創作者。

  • As we enter a seasonally strong quarter, we are well positioned in the retail space and expect the fiscal second quarter to be another growth quarter in retail.

    隨著我們進入季節性強勁的季度,我們在零售領域處於有利地位,並預計第二財季將成為零售業的另一個成長季度。

  • Our WD Black product line has been expanding and continues to add innovative solutions for gamers, including the recently launched WD Black SN850.

    我們的 WD Black 產品線一直在擴展,並持續為遊戲玩家添加創新解決方案,包括最近推出的 WD Black SN850。

  • This is our first SSD to feature next-generation PCIe 4 technology, and early reception has been very positive.

    這是我們首款採用下一代 PCIe 4 技術的 SSD,早期的反應非常正面。

  • In fact, over 850,000 gamers streamed our Twitch launch in early October.

    事實上,超過 85 萬名遊戲玩家在 10 月初觀看了我們的 Twitch 發布活動。

  • Our comprehensive portfolio is enabling us to provide flash products directly into consoles as well as provide leading flash and HDD retail solutions for the broader consumer gaming market.

    我們全面的產品組合使我們能夠直接向遊戲機提供快閃記憶體產品,並為更廣泛的消費遊戲市場提供領先的快閃記憶體和硬碟零售解決方案。

  • In total, gaming represented about 10% of our flash revenue this quarter.

    總的來說,遊戲占我們本季閃存收入的 10% 左右。

  • Gaming continues to be a promising growth area for us, and we are excited about the future of this end market.

    遊戲仍然是我們一個充滿希望的成長領域,我們對這個終端市場的未來感到興奮。

  • We continued the enterprise SSD momentum we discussed last quarter, having now completed over 100 qualifications of our second-generation NVMe products.

    我們延續了上季度討論的企業級 SSD 勢頭,現已完成第二代 NVMe 產品的 100 多項資格認證。

  • Over the next 2 quarters, we expect to start qualifications at additional cloud tightens in one of our largest OEMs, which will further expand our addressable market.

    在接下來的兩個季度中,我們預計將在我們最大的 OEM 之一中開始額外的雲端收緊資格認證,這將進一步擴大我們的潛在市場。

  • We have large cloud and OEM partners.

    我們擁有大型雲端和 OEM 合作夥伴。

  • Having large cloud and OEM partners complete a qualification cycle can be a multi-quarter process with deep commitment and investment from both parties required, but they typically lead to high-volume purchases.

    讓大型雲端和 OEM 合作夥伴完成資格週期可能需要多個季度的過程,需要雙方的深入承諾和投資,但通常會帶來大量採購。

  • We are well versed in this process, having undertaken thousands of qualifications over the past several years, which are inevitably successful.

    我們非常熟悉這個過程,在過去的幾年裡進行了數千項資格認證,這些認證都不可避免地取得了成功。

  • The enterprise SSD market has immense untapped potential and remains a key area of focus for us.

    企業級SSD市場擁有巨大的未開發潛力,仍是我們關注的重點領域。

  • I'm also confident the recent organization changes we've made will further sharpen our execution in this critical market.

    我也相信,我們最近所做的組織變革將進一步增強我們在這個關鍵市場的執行力。

  • More broadly, our successful 20-year partnership with Kioxia continues to be a strength of the business.

    更廣泛地說,我們與 Kioxia 長達 20 年的成功合作關係仍然是我們業務的優勢。

  • Our joint memory technology road map remains strong with impressive BiCS4 and BiCS5 yields and associated strong cost improvements underpinning our entire portfolio.

    我們的聯合記憶體技術路線圖依然強勁,BiCS4 和 BiCS5 產量令人印象深刻,相關的成本改善也支撐著我們整個產品組合。

  • We also regularly work with Kioxia on future facility planning.

    我們也定期與 Kioxia 合作制定未來設施規劃。

  • To that end, this afternoon, Kioxia announced the construction of the shell for Fab7 in Yokkaichi, which is expected to commence in the spring of 2021.

    為此,今天下午,鎧俠宣佈在四日市建造 Fab7 外殼,預計於 2021 年春季動工。

  • We expect to continue our joint venture investments for Fab7 and look forward to our ongoing successful partnership.

    我們期望繼續對 Fab7 進行合資投資,並期待我們持續成功的合作夥伴關係。

  • On the HDD side of the business, we continue to align our product portfolio towards growth markets, particularly in cloud and smart video.

    在硬碟業務方面,我們繼續調整我們的產品組合以適應成長市場,特別是在雲端和智慧視訊領域。

  • These end markets demand high performance, high capacity drives, and we are continuing to innovate in head and media design, firmware and mechanical suspension to take advantage of this opportunity.

    這些終端市場需要高性能、高容量的驅動器,我們將繼續在磁頭和介質設計、韌體和機械懸吊方面進行創新,以利用這一機會。

  • We achieved important HDD business and product milestones in the quarter, which highlights our commitment to innovation and our focus on sharpening execution.

    我們在本季實現了硬碟業務和產品的重要里程碑,這凸顯了我們對創新的承諾以及對提高執行力的關注。

  • First, I am pleased to announce that we reached our goal of producing over 1 million energy-assisted drives.

    首先,我很高興地宣布,我們已經實現了生產超過 100 萬台能源輔助驅動器的目標。

  • We are seeing strong engagement with customers as we build on our capacity to aggressively ramp this platform.

    隨著我們積極提升該平台的能力,我們看到了與客戶的密切互動。

  • We have completed nearly 100 qualifications, including with 1 CloudTitan and have an additional 125 qualifications in process, including with 2 more CloudTitans.

    我們已完成近 100 項資格認證,其中包括 1 項 CloudTitan 認證,另有 125 項資格認證正在進行中,其中包括 2 項 CloudTitan 認證。

  • We're excited about the progress we've made and expect the 18-terabyte capacity point to be the sweet spot in the industry.

    我們對所取得的進展感到興奮,並預計 18 TB 容量點將成為業界的最佳點。

  • Second, on Monday, we announced qualifications have been completed on the 20-terabyte platform, and we have already started shipping for revenue.

    其次,週一我們宣布20TB平台的資格認證已經完成,我們已經開始出貨並開始獲利。

  • You may recall, several years ago, we committed to delivering a 20-terabyte product to our customers by 2020.

    您可能還記得,幾年前,我們承諾在 2020 年之前向客戶提供 20 TB 的產品。

  • Reaching this critical milestone is a significant achievement and testament to our ability to deliver on our product road maps.

    達到這一關鍵里程碑是一項重大成就,證明了我們實現產品路線圖的能力。

  • Finally, in our OEM and retail end markets for HDD, we saw upside in demand, driven by the work from home and distance learning trends and expect this to continue through the current quarter.

    最後,在我們的硬碟 OEM 和零售終端市場中,受在家工作和遠距學習趨勢的推動,我們看到需求上升,並預計這種情況將持續到本季。

  • I'm very proud of the team for the focus and commitment to achieving these important milestones, and I'm excited about how we are positioned for success moving forward.

    我為團隊對實現這些重要里程碑的專注和承諾感到非常自豪,我對我們如何為成功前進感到興奮。

  • I'll now ask Bob to share details on our first quarter results before I talk about what we see going forward.

    現在,在我談論我們對未來的看法之前,我將請鮑勃分享我們第一季業績的詳細資訊。

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Thanks, Dave, and good afternoon, everyone.

    謝謝戴夫,大家下午好。

  • Overall, results for the first quarter were at the upper end of the guidance ranges we provided in August.

    總體而言,第一季的業績處於我們 8 月提供的指導範圍的上限。

  • We continued to make a number of long-term structural changes in the way we're running the business to accelerate growth and drive agility, focus and business accountability throughout the organization.

    我們繼續對業務運作方式進行一系列長期結構性變革,以加速成長並推動整個組織的敏捷性、重點和業務問責。

  • We are evaluating whether any changes are needed to our already comprehensive disclosure as a result of the new business unit structure that Dave described.

    我們正在評估是否需要因戴夫所描述的新業務部門結構而對我們已經全面的披露進行任何更改。

  • Today, however, I will focus on our traditional disclosures.

    然而,今天我將重點討論我們的傳統披露。

  • For the first quarter, revenue was $3.9 billion, down 9% sequentially and 3% year-over-year.

    第一季營收為 39 億美元,季減 9%,年減 3%。

  • Recall the last fiscal year period was a 14-week quarter.

    回想一下,上一財年的一個季度有 14 週。

  • Looking at our end markets.

    看看我們的終端市場。

  • Client devices revenue was $1.9 billion, a bit better than expected, up 2% sequentially and 20% year-over-year.

    客戶端設備營收為 19 億美元,略優於預期,季增 2%,較去年同期成長 20%。

  • Within this end market, client SSD revenue declined sequentially from a record level as our customers digested some excess inventory, and we faced lower flash pricing.

    在這個終端市場中,由於我們的客戶消化了一些過剩庫存,客戶 SSD 收入從創紀錄的水平連續下降,而且我們面臨著較低的快閃記憶體定價。

  • Notebook and desktop hard drive revenue declined sequentially as the market continued to transition to SSD-based products.

    隨著市場繼續向基於 SSD 的產品過渡,筆記型電腦和桌上型電腦硬碟收入較上季下降。

  • But demand was better than expected due to work, school and game-from-home trends.

    但由於工作、學校和在家玩遊戲的趨勢,需求好於預期。

  • Smart video demand was better than expected as this market started to recover.

    隨著市場開始復甦,智慧視訊需求好於預期。

  • Gaming revenue experienced very strong sequential growth as we increased our shipments in preparation for the upcoming new game console launches.

    隨著我們增加出貨量以準備即將推出的新遊戲機,遊戲收入經歷了非常強勁的連續成長。

  • And finally, mobile flash revenue grew on a sequential and year-over-year basis, driven by demand from several China-based customers and new 5G product road maps here in the U.S.

    最後,在一些中國客戶的需求和美國新的 5G 產品路線圖的推動下,行動快閃記憶體收入比去年同期成長。

  • Moving on to data center devices and solutions.

    繼續討論資料中心設備和解決方案。

  • Revenue was $1.1 billion, down 33% sequentially and 26% year-over-year.

    營收為 11 億美元,季減 33%,年減 26%。

  • Both capacity enterprise hard drive and enterprise SSD revenue were down sequentially due to digestion at both cloud and OEM customers.

    由於雲端和 OEM 客戶的消化,大容量企業硬碟和企業 SSD 收入均較上季下降。

  • Next, Client Solutions revenue was above expectations at $847 million, up 23% sequentially as brick-and-mortar stores continued recovering and online and curbside pickup trends continued.

    其次,隨著實體店持續復甦以及線上和路邊提貨趨勢的持續,客戶解決方案收入超出預期,達到 8.47 億美元,環比增長 23%。

  • Client Solutions was down 5% year-over-year.

    客戶解決方案年減 5%。

  • The work, school and gaming-from-home trend benefited both hard drive and flash-based products.

    工作、學習和在家玩遊戲的趨勢使硬碟和基於快閃記憶體的產品受益。

  • Again, highlighting the powerful go-to-market synergies of this channel.

    再次強調該通路強大的上市綜效。

  • As Dave mentioned, flash pricing in retail has been fairly stable.

    正如戴夫所提到的,零售業的閃購定價一直相當穩定。

  • Traditionally, this has been a leading indicator to pricing trends in other portions of the flash market.

    傳統上,這一直是快閃記憶體市場其他部分定價趨勢的領先指標。

  • Turning to revenue by technology.

    轉向技術收入。

  • Flash revenue was $2.1 billion, down 7% sequentially, but up 27% year-over-year.

    快閃記憶體收入為 21 億美元,季減 7%,但年增 27%。

  • Flash ASPs were down 9% sequentially on a blended basis and down 6% on a like-for-like basis.

    Flash 平均售價在混合基礎上較上季下降 9%,在年比基礎上下降 6%。

  • Bit shipments were up 1% sequentially.

    位元出貨量較上季成長 1%。

  • Hard drive revenue was $1.8 billion, down 10% sequentially and down 23% year-over-year.

    硬碟營收為 18 億美元,季減 10%,年減 23%。

  • On a sequential basis, total exabyte shipments were down 7%.

    以環比計算,艾字節總出貨量下降了 7%。

  • While the average price per hard drive decreased 9% to $79, reflecting the digestion we noted for our capacity enterprise drive products.

    雖然每個硬碟的平均價格下降了 9% 至 79 美元,反映了我們對容量企業硬碟產品的消化。

  • As we move into costs and expenses, please note all of my comments will be related to non-GAAP results unless stated otherwise.

    當我們討論成本和費用時,請注意,除非另有說明,我的所有評論都將與非 GAAP 業績相關。

  • Gross margin for the first quarter was down 2.6 percentage points sequentially to 26.3%, slightly above the midpoint of our guidance range.

    第一季毛利率較上季下降 2.6 個百分點至 26.3%,略高於我們指引範圍的中點。

  • Flash K1 startup costs were $66 million.

    Flash K1 的啟動成本為 6,600 萬美元。

  • COVID-related costs were $28 million, essentially all attributable to hard drives, down from $96 million in the prior quarter.

    與新冠肺炎相關的成本為 2800 萬美元,基本上全部歸因於硬碟,低於上一季的 9,600 萬美元。

  • Our flash gross margin was 26.4%, down 4.1 percentage points from last quarter as pricing was down more than anticipated.

    由於定價降幅超出預期,我們的快閃記憶體毛利率為 26.4%,較上季下降 4.1 個百分點。

  • We continued to achieve good cost reductions, which helped to partially offset the decline in pricing.

    我們繼續實現了良好的成本削減,這有助於部分抵消定價的下降。

  • Our hard drive gross margin was 26.2%, down 1 percentage point sequentially due to product mix and costs associated with the early ramp of our next-generation energy-assisted hard drives.

    我們的硬碟毛利率為 26.2%,季減 1 個百分點,原因是產品組合和與下一代能源輔助硬碟早期提升相關的成本。

  • COVID-related costs represented about 1.1 percentage point on our hard drive gross margins.

    與新冠病毒相關的成本約占我們硬碟毛利率的 1.1 個百分點。

  • Non-GAAP earnings per share was $0.65.

    非 GAAP 每股收益為 0.65 美元。

  • Operating cash flow for the first quarter was $363 million, and free cash flow was $196 million.

    第一季營運現金流為 3.63 億美元,自由現金流為 1.96 億美元。

  • Capital expenditures, which include the purchase of property, plant and equipment, and activity related to flash joint ventures on our cash flow statement was a cash outflow of $167 million.

    資本支出(包括購買財產、廠房和設備,以及與現金流量表上的快閃合資企業相關的活動)的現金流出為 1.67 億美元。

  • In the fiscal first quarter, we reduced debt by $213 million, including an optional debt payment of $150 million.

    在第一財季,我們減少了 2.13 億美元的債務,其中包括 1.5 億美元的可選債務支付。

  • Our liquidity position continues to be strong.

    我們的流動性狀況仍然強勁。

  • At the end of the quarter, we had $3 billion in cash and cash equivalents and our gross debt outstanding was $9.5 billion.

    截至本季末,我們擁有 30 億美元的現金和現金等價物,未償債務總額為 95 億美元。

  • Our debt-to-adjusted EBITDA ratio was 4x in the first quarter.

    第一季我們的負債與調整後 EBITDA 比率為 4 倍。

  • Our adjusted EBITDA, as defined in our credit agreement, was $3.4 billion, flat sequentially, resulting in a leverage ratio of 2.8x.

    根據信貸協議的定義,我們調整後的 EBITDA 為 34 億美元,與上一季持平,槓桿率為 2.8 倍。

  • As a reminder, our credit agreement includes $980 million in depreciation add-back associated with the joint ventures.

    提醒一下,我們的信貸協議包括與合資企業相關的 9.8 億美元折舊回加。

  • This is not reflected in our cash flow statement.

    這沒有反映在我們的現金流量表中。

  • Please refer to the earnings presentation on the Investor Relations website for further details.

    欲了解更多詳情,請參閱投資者關係網站上的收益報告。

  • Moving on to our outlook.

    繼續我們的展望。

  • As Dave mentioned, we are optimistic that conditions will improve next calendar year.

    正如戴夫所提到的,我們樂觀地認為明年的情況將會有所改善。

  • However, our visibility remains limited in the near term as a result of the uncertainty of the pandemic and global economic contraction.

    然而,由於疫情和全球經濟收縮的不確定性,短期內我們的能見度仍然有限​​。

  • Despite this uncertainty, we continue to execute effectively and build on our strong foundation of great products, deep customer relationships and large and growing end markets.

    儘管存在這種不確定性,我們仍繼續有效執行,並建立在優質產品、深厚的客戶關係和龐大且不斷增長的終端市場的堅實基礎上。

  • We are working on a number of substantial product transitions that will set us up well for the long term.

    我們正在致力於一些重大的產品轉型,這將為我們的長期發展奠定良好的基礎。

  • By technology, we expect hard drive revenue will be up and flash revenue will decline.

    從技術角度來看,我們預期硬碟收入將上升,快閃記憶體收入將下降。

  • During the fiscal first quarter, we experienced a pull forward in demand due to geopolitical dynamics.

    在第一財季,由於地緣政治動態,我們經歷了需求的成長。

  • The most significant was from Huawei, which represented mid- to high single-digit percentage of sales.

    最重要的是華為,其銷售額佔中高個位數百分比。

  • We are now planning on 0 sales to Huawei in the fiscal second quarter.

    我們現在計劃在第二財季對華為的銷售量為零。

  • With all these factors in mind, our fiscal second quarter guidance is as follows: we expect revenues to be in the range of $3.75 billion to $3.95 billion.

    考慮到所有這些因素,我們第二季的指導如下:我們預計收入將在 37.5 億美元至 39.5 億美元之間。

  • Non-GAAP gross margin to be between 24% and 26%.

    非 GAAP 毛利率在 24% 至 26% 之間。

  • This range includes approximately $30 million in costs associated with COVID and $50 million in costs associated with the K1 fab.

    該範圍包括約 3000 萬美元與新冠病毒相關的成本和 5000 萬美元與 K1 晶圓廠相關的成本。

  • We expect the fiscal second quarter to be the final quarter in which we incur meaningful period expenses associated with the start-up of the K1 fab.

    我們預計第二財季將是我們因 K1 晶圓廠啟動而產生有意義的期間費用的最後一個季度。

  • We expect operating expenses to be between $680 million and $700 million.

    我們預計營運費用將在 6.8 億至 7 億美元之間。

  • Interest and other expense is expected to be between $70 million and $75 million.

    利息和其他費用預計在 7,000 萬至 7,500 萬美元之間。

  • The tax rate is expected to be between 21% and 25% in the second quarter.

    預計第二季稅率在21%至25%之間。

  • And we expect non-GAAP earnings per share to be between $0.40 and $0.60 in the second quarter, assuming approximately 306 million fully diluted shares.

    我們預計第二季非公認會計原則每股收益將在 0.40 美元至 0.60 美元之間,假設完全稀釋後的股票數量約為 3.06 億股。

  • In summary, we are managing well in an uncertain environment and positioning ourselves in both the flash and hard drive markets for the significant long-term growth opportunities that are ahead.

    總之,我們在不確定的環境中管理得很好,並在快閃記憶體和硬碟市場上定位自己,以抓住未來的重大長期成長機會。

  • Now I'll turn it back to Dave.

    現在我會把它轉回給戴夫。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Thanks, Bob.

    謝謝,鮑伯。

  • Heading into the holiday season and into calendar 2021, we are optimistic about what lies ahead.

    進入假期季節和 2021 年,我們對未來感到樂觀。

  • As the technology industry evolves and grows and data becomes more critical and valuable, we will be positioned for success by continuing our history of innovation, delivering on our product road map across flash and HDD, building on our strong customer relationship as a trusted storage provider of choice and continuing to sharpen our execution across the business.

    隨著科技產業的發展和壯大,數據變得更加重要和有價值,我們將透過繼續我們的創新歷史、在快閃記憶體和HDD 領域提供我們的產品路線圖、建立我們作為值得信賴的儲存提供者的強大客戶關係來取得成功選擇並繼續提高我們整個業務的執行力。

  • The recent organizational changes will be integral to accelerating and enhancing our ability to address and capture major opportunities in front of us.

    最近的組織變革對於加速和增強我們處理和抓住擺在我們面前的重大機會的能力至關重要。

  • I consider change a catalyst of opportunity, and I am very excited about the future of Western Digital.

    我認為改變是機會的催化劑,我對西部數據的未來感到非常興奮。

  • We will continue to think strategically and act thoughtfully with the best interest of our shareholders, customers and employees in mind.

    我們將繼續以股東、客戶和員工的最佳利益為出發點進行策略思考和深思熟慮的行動。

  • I'll now turn the call over to the operator to begin Q&A.

    我現在將把電話轉給接線員以開始問答。

  • Operator

    Operator

  • (Operator Instructions) Our first question comes from Joe Moore with Morgan Stanley.

    (操作員說明)我們的第一個問題來自摩根士丹利的 Joe Moore。

  • Joseph Lawrence Moore - Executive Director

    Joseph Lawrence Moore - Executive Director

  • I wonder if you could talk a little bit about the NAND pricing that you saw in Q3.

    我想知道您是否可以談談您在第三季看到的 NAND 定價。

  • You talked about 6% like-for-like declines.

    您談到了 6% 的同比下降。

  • It seems like the markets that are more observable pricing like solid-state drives were down more than that.

    固態硬碟等定價更容易觀察到的市場似乎跌幅更大。

  • So a little surprised that was kind of benign, and then maybe a little bit about how you see NAND pricing in the fourth quarter.

    所以有點驚訝,這是良性的,然後可能有點關於你如何看待第四季度的 NAND 定價。

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Do you want to start or you want me...

    你想開始還是想要我...

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Go ahead.

    前進。

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Joe, it's Bob.

    喬,是鮑伯。

  • I'll go ahead and start.

    我先開始吧。

  • So yes, I mean, we obviously still saw pretty significant price declines during the quarter.

    所以,是的,我的意思是,我們顯然在本季仍然看到價格大幅下跌。

  • We were fortunate we were able to offset some of that with pretty good cost reductions during the quarter.

    幸運的是,我們能夠在本季度透過相當好的成本削減來抵消其中的一些影響。

  • And we think we're going to continue to see some price pressure going forward.

    我們認為未來將繼續面臨一些價格壓力。

  • As we said in our comments, in the retail channel, things seem to have stabilized.

    正如我們在評論中所說,在零售通路,情況似乎已經穩定下來。

  • From an OEM perspective, prices are down in the December quarter, but we're hopeful that they will begin to stabilize as well.

    從 OEM 角度來看,價格在 12 月季度有所下降,但我們希望價格也能開始穩定。

  • Joseph Lawrence Moore - Executive Director

    Joseph Lawrence Moore - Executive Director

  • And are you guys seeing solid-state drives be worse than like at a component level NAND sale?

    你們是否認為固態硬碟比組件級 NAND 銷售更糟?

  • Or is it the same?

    或者說是一樣的嗎?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Yes.

    是的。

  • I don't know that we want to get to that level of detail.

    我不知道我們是否想要達到這種程度的細節。

  • I'd say it's roughly the same.

    我想說的是大致相同。

  • I don't think there's a big difference between the two.

    我認為兩者之間沒有太大區別。

  • Operator

    Operator

  • Our next question comes from Toshiya Hari with Goldman Sachs.

    我們的下一個問題來自高盛的 Toshiya Hari。

  • Toshiya Hari - MD

    Toshiya Hari - MD

  • You mentioned that you saw a pull forward in the quarter and you sized Huawei as sort of a mid-single-digit to high single-digit customer.

    您提到,您看到本季度出現了成長,並且您將華為視為中個位數到高個位數客戶。

  • I was hoping you could quantify how big the pull forward was, not just from Huawei, but from, I guess, all your customers, particularly in China?

    我希望你能量化這種推動力有多大,不僅來自華為,而且我猜還來自你所有的客戶,尤其是中國的客戶?

  • If you do have a number?

    如果你有號碼嗎?

  • And I guess maybe related to that, your inventory was up a little bit on a sequential basis.

    我想也許與此相關,您的庫存連續增加了一點。

  • Was that mostly on the NAND side?

    主要是在 NAND 方面嗎?

  • Or was it across both your businesses?

    或者是您的兩個企業都有這樣的情況嗎?

  • And then, sorry, one more.

    然後,抱歉,再來一張。

  • How would you assess your -- how would you assess customer inventory levels as of today, both on the NAND side and HDD side?

    您將如何評估截至目前為止的 NAND 端和 HDD 端的客戶庫存水準?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • I'll start, and then Bob can add on.

    我先開始,然後鮑伯可以補充。

  • So I think the pull forward, we did see some.

    所以我認為,我們確實看到了一些進展。

  • Clearly, I think it was fairly modest, maybe 1% to 2%.

    顯然,我認為這個比例相當適中,可能是 1% 到 2%。

  • So -- and then, of course, once the commerce department rules hit, that all stopped.

    所以——當然,一旦商務部的規定生效,一切就停止了。

  • The second question...

    第二個問題...

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • About inventory.

    關於庫存。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Inventory.

    存貨。

  • Do you want to start with inventory, Bob?

    鮑勃,你想從庫存開始嗎?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Yes.

    是的。

  • So the -- you're right, the inventory was up quite a bit sequentially.

    所以——你是對的,庫存連續增加了很多。

  • And some of that was really due to particularly low levels of inventory in the June quarter.

    其中部分原因實際上是由於六月季度的庫存水準特別低。

  • And most of it is on the hard drive side.

    其中大部分都在硬碟方面。

  • And as we have talked about this year, it's been a very disruptive supply chain.

    正如我們今年所討論的,這是一條極具顛覆性的供應鏈。

  • So we really are taking actions with inventory to assure that we have the components that we need to build the products.

    因此,我們確實正在對庫存採取行動,以確保我們擁有建立產品所需的組件。

  • We also are trying to have enough inventory so we can ship on the ocean rather than in air.

    我們還試圖擁有足夠的庫存,以便我們可以通過海運而不是空運。

  • As you probably know, the airfreight rates are very high coming out of Asia right now.

    您可能知道,目前從亞洲出發的空運價格非常高。

  • And then finally, we are in a very significant ramp with our 16, 18 and 20-terabyte products.

    最後,我們的 16、18 和 20 TB 產品正處於非常顯著的成長階段。

  • So all those factors play into the increase in inventory.

    因此,所有這些因素都會影響庫存的增加。

  • And we're confident, obviously, it's mostly our newer products, we'll be able to sell that inventory.

    顯然,我們有信心,這主要是我們的新產品,我們將能夠出售這些庫存。

  • And then I think your other question was with respect to customer inventory levels.

    然後我認為你的另一個問題是關於客戶庫存水準的。

  • And I would say, first of all, in the channel, retail and commercial distribution, we think inventory levels are very normal.

    我想說,首先,在通路、零售和商業分銷方面,我們認為庫存水準非常正常。

  • I don't see any issues there.

    我沒有看到任何問題。

  • From an OEM and from a cloud perspective, we're definitely seeing some customers who still are in the process of normalizing their inventory levels.

    從 OEM 和雲端的角度來看,我們確實看到一些客戶仍在正常化其庫存水準。

  • So their inventories are still a bit high.

    所以他們的庫存還是有點高。

  • But again, we're hopeful that, that will get normalized in the December quarter.

    但我們再次希望,這將在 12 月季度正常化。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • Just to reinforce one thing Bob said there.

    只是為了強調鮑伯在那裡說的一件事。

  • I mean the ramp on the 16, 18 product is the fastest ramp we've ever done to a new capacity point by a significant amount.

    我的意思是,16、18 產品的提升是我們達到新容量點以來最快的提升速度。

  • So we are getting prepared for demand for that product as we go forward.

    因此,隨著我們的發展,我們正在為該產品的需求做好準備。

  • And so yes, that's been an impact on the system as well.

    是的,這也對系統產生了影響。

  • Operator

    Operator

  • Our next question comes from Karl Ackerman with Cowen.

    我們的下一個問題來自卡爾·阿克曼和考恩。

  • Karl Fredrick Ackerman - Director & Senior Research Analyst

    Karl Fredrick Ackerman - Director & Senior Research Analyst

  • Two questions as well, please.

    還有兩個問題請教一下。

  • The first question I have is, your OpEx outlook of $690 million, I think, is very impressive.

    我的第一個問題是,我認為你們 6.9 億美元的營運支出前景非常令人印象深刻。

  • But what are your thoughts on OpEx from that level, considering the new change in organizational structure and initiatives on enterprise SSDs and energy-assisted nearline drives?

    但是,考慮到組織結構的新變化以及企業 SSD 和能源輔助近線驅動器的舉措,您對營運支出有何看法?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • So OpEx is something, I mean, clearly, we've been focused on.

    我的意思是,營運支出顯然是我們一直關注的問題。

  • I mean, especially given the market we're in.

    我的意思是,特別是考慮到我們所處的市場。

  • But I think the new organization structure gives us more focus to make sure we're spending our OpEx on the most valuable thing.

    但我認為新的組織結構讓我們更加關注,以確保我們將營運支出花在最有價值的事情上。

  • So I view the fact that we've got to highly experienced general managers coming in to drive the business as continuing to drive that focus to make sure we're investing in the right places.

    因此,我認為我們必須聘請經驗豐富的總經理來推動業務發展,以繼續推動這一重點,以確保我們在正確的地方進行投資。

  • So Bob, do you want to say anything in addition?

    鮑勃,你還有什麼要說的嗎?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Yes.

    是的。

  • I can just add.

    我可以補充一下。

  • I mean I think that the second fiscal quarter is going to be unusually low in terms of OpEx.

    我的意思是,我認為第二財季的營運支出將異常低。

  • We've got some seasonal factors there that are benefiting us.

    一些季節性因素對我們有利。

  • As we move forward, I would expect, as we get -- as business ultimately gets back to normal, we'll start having more employees in the office, more travel, I would say OpEx will probably go up a bit.

    隨著我們前進,我預計,隨著業務最終恢復正常,我們將開始在辦公室僱用更多員工,更多出差,我認為營運支出可能會上升。

  • But we are pleased with the cost controls.

    但我們對成本控制感到滿意。

  • And I think the new structure will give us a lot of focus.

    我認為新的結構會讓我們更加關注。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • Somewhere we're going to keep a very close eye on.

    我們將密切關注某個地方。

  • Karl Fredrick Ackerman - Director & Senior Research Analyst

    Karl Fredrick Ackerman - Director & Senior Research Analyst

  • Understood.

    明白了。

  • For my follow-up, some investors are concerned or have been concerned that NAND profitability will remain subdued next year as some Korean peers ratchet up NAND CapEx, despite soft demand.

    在我的後續行動中,一些投資者擔心或一直擔心明年 NAND 盈利能力將繼續低迷,因為儘管需求疲軟,一些韓國同行仍加大了 NAND 資本支出。

  • I guess what sort of initiatives have you taken to respond to such a scenario?

    我想你們採取了哪些措施來應對這種情況?

  • And then similarly, because NAND prices are dictated by supply and demand, do you think it's going to take several more quarters for NAND inventory to burn off and reach demand equilibrium?

    同樣,由於 NAND 價格由供需決定,您認為 NAND 庫存還需要幾個季度才能消耗完並達到需求平衡嗎?

  • Or I guess, are your earlier comments indicative that pricing will be more benign?

    或者我猜,您之前的評論是否表明定價會更加溫和?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Well, I mean, so first of all, the -- I mean the market requires a lot of ongoing investment just to keep up with the 30% demand increase in bit supply.

    嗯,我的意思是,首先,我的意思是市場需要大量持續投資才能跟上比特供應 30% 的需求成長。

  • I mean, clearly, there's -- we're working through an oversupply situation.

    我的意思是,很明顯,我們正在解決供應過剩的情況。

  • But we continue to have a point of view that for the most part, the industry has done a pretty good job of being vigilant with CapEx.

    但我們仍然認為,在很大程度上,該行業在對資本支出保持警惕方面做得相當不錯。

  • We're certainly -- we invest with our partner in Kioxia.

    當然,我們與我們的合作夥伴 Kioxia 進行投資。

  • So together, we're a very big player.

    因此,我們一起成為一個非常重要的參與者。

  • And we're -- we've been very much on top of CapEx, and we've really got a tight process around that to make sure that we are investing appropriately.

    我們在資本支出方面一直非常領先,我們確實有一個嚴格的流程來確保我們進行適當的投資。

  • On the demand side, we do see a lot of things ramping up.

    在需求方面,我們確實看到很多事情都在增加。

  • I mean we see -- we talked about gaming in our prepared remarks.

    我的意思是我們看到——我們在準備好的發言中談到了遊戲。

  • It was 10% of our business this past quarter.

    這是我們上個季度業務的 10%。

  • We obviously have a 5G ramp starting now.

    顯然我們現在就開始了 5G 升級。

  • We're hearing from our customers in '21 on the cloud side that -- I think we can all -- we all would agree that coming out of COVID that the demand for the cloud keeps going up, and we're seeing that.

    我們在 21 年從雲端方面的客戶那裡聽到——我想我們都可以——我們都同意,從新冠疫情之後,對雲端的需求不斷上升,我們也看到了這一點。

  • So we -- it's hard to call that to a specific quarter, but we feel better about 2021.

    因此,我們很難將其稱為特定季度,但我們對 2021 年感覺更好。

  • Bob, anything you want to add on top of that?

    鮑勃,除此之外你還有什麼要補充的嗎?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • No.

    不。

  • I agree.

    我同意。

  • I mean I think there's definitely some exciting trends in 2021 as 5G starts to take hold in a more significant way.

    我的意思是,我認為隨著 5G 開始以更重要的方式佔據主導地位,2021 年肯定會出現一些令人興奮的趨勢。

  • And we aren't as big in mobile.

    而且我們在行動領域的規模還沒有那麼大。

  • But that our competitors will be serving that market, and that will consume a lot of bids.

    但我們的競爭對手將為該市場提供服務,這將消耗大量的出價。

  • So I think overall, 2021 is shaping up to be a good year.

    因此,我認為總體而言,2021 年將是美好的一年。

  • Operator

    Operator

  • Our next question comes from Aaron Rakers with Wells Fargo.

    我們的下一個問題來自富國銀行的 Aaron Rakers。

  • Aaron Christopher Rakers - MD of IT Hardware & Networking Equipment and Senior Analyst

    Aaron Christopher Rakers - MD of IT Hardware & Networking Equipment and Senior Analyst

  • I guess I have to ask 2 as well.

    我想我也得問2。

  • So I guess the first question, if you could help us unpack the gross margin guide of 24% to 26% in this current quarter between the NAND business and the hard disk drive business.

    所以我想第一個問題是,您是否可以幫助我們解開本季 NAND 業務和硬碟業務之間 24% 至 26% 的毛利率指引。

  • And relative to the HDD business, I can appreciate that you're ramping the first generation of the energy-assist drives.

    相對於 HDD 業務,我可以理解你們正在大力發展第一代能量輔助驅動器。

  • But how do I think about the progression back to, call it, 30% gross margin?

    但我該如何看待毛利率回到 30% 的趨勢呢?

  • What needs to happen there?

    那裡需要發生什麼?

  • And I do have another follow-up.

    我還有另一個後續行動。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • So I'll take the second one first.

    所以我先拿第二個。

  • I mean it is about the business shifting to the higher capacity points, right?

    我的意思是,這是關於業務轉移到更高的容量點,對嗎?

  • I mean we're in a big transition now to a new platform.

    我的意思是,我們現在正處於向新平台的重大過渡中。

  • So as that transition starts to ramp, that will be accretive to gross margins.

    因此,隨著這種轉變開始加速,毛利率將會增加。

  • I think on pricing, we're getting more disciplined on pricing as well.

    我認為在定價方面,我們在定價方面也變得更加嚴格。

  • I mean it's a very important technology and making sure we keep our eye on that side as well is very important.

    我的意思是,這是一項非常重要的技術,確保我們也關注這一方面也非常重要。

  • But we certainly see a path to increasing gross margins as we drive through the ramp of this capacity enterprise product.

    但隨著我們推動這種容量企業產品的發展,我們肯定看到了一條提高毛利率的道路。

  • Bob, you want to...

    鮑勃,你想...

  • Aaron Christopher Rakers - MD of IT Hardware & Networking Equipment and Senior Analyst

    Aaron Christopher Rakers - MD of IT Hardware & Networking Equipment and Senior Analyst

  • And what are you assuming in the quarter, the current quarter guide?

    您對本季(目前季度指南)有何假設?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • What are we -- I'm sorry, we're assuming on what?

    我們是什麼──抱歉,我們假設什麼?

  • Aaron Christopher Rakers - MD of IT Hardware & Networking Equipment and Senior Analyst

    Aaron Christopher Rakers - MD of IT Hardware & Networking Equipment and Senior Analyst

  • NAND versus hard drive margin.

    NAND 與硬碟利潤率。

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Yes.

    是的。

  • Yes.

    是的。

  • Okay.

    好的。

  • Yes, I'll do the unpacking on hard drives.

    是的,我將在硬碟上進行解包。

  • So obviously, it benefits us quite a bit as the market shifts to capacity enterprise.

    顯然,隨著市場轉向產能企業,這對我們來說非常有利。

  • And we do expect to have, over time, significantly better gross margins as the enterprise becomes a bigger percentage of the total.

    隨著時間的推移,隨著企業在整體中所佔的比例越來越大,我們確實預期毛利率會顯著提高。

  • In the December quarter, it turns out, we're seeing a lot of strength in retail.

    事實證明,在 12 月季度,我們看到零售業表現強勁。

  • And so that means the mix is unfavorable in the December quarter from a hard drive standpoint.

    因此,這意味著從硬碟的角度來看,12 月季度的混合情況是不利的。

  • And we do expect that to recover as we launch the new products going into next year.

    我們確實預計,隨著我們明年推出新產品,這種情況將會恢復。

  • So I think on the hard drive side, we'll definitely see recovery.

    所以我認為在硬碟方面,我們肯定會看到復甦。

  • On the flash side, it's really a matter of how things go with pricing.

    在閃存方面,這實際上是定價的問題。

  • As we mentioned, we're seeing some stabilization in the more transactional markets.

    正如我們所提到的,我們看到交易性較強的市場出現了一定程度的穩定。

  • And we're obviously a couple of months away from negotiating for next quarter with the OEMs, but we're hopeful that we'll start to see the pricing situation improve on the flash side as well.

    顯然,我們距離與原始設備製造商就下季度進行談判還有幾個月的時間,但我們希望我們也能開始看到快閃記憶體的定價情況有所改善。

  • Aaron Christopher Rakers - MD of IT Hardware & Networking Equipment and Senior Analyst

    Aaron Christopher Rakers - MD of IT Hardware & Networking Equipment and Senior Analyst

  • Okay.

    好的。

  • And then as a quick follow-up, can you tell us just housekeeping wise, what the nearline capacity shift was either sequentially or year-over-year growth?

    然後,作為快速跟進,您能否簡單地告訴我們,近線產能變化是連續增長還是同比增長?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Yes.

    是的。

  • We don't break that out specifically on a quarterly basis.

    我們不會按季度具體細分。

  • I'll try to see if I can dig up an exabyte number on a year-over-year basis.

    我將嘗試看看是否可以逐年挖掘出艾字節的數字。

  • Operator

    Operator

  • Our next question comes from C.J. Muse with Evercore.

    我們的下一個問題來自 Evercore 的 C.J. Muse。

  • Christopher James Muse - Senior MD, Head of Global Semiconductor Research & Senior Equity Research Analyst

    Christopher James Muse - Senior MD, Head of Global Semiconductor Research & Senior Equity Research Analyst

  • I guess, first question, can you speak to how you balance the obvious need to lower your cost and increase layer count with the fact that, that adds bits to the market?

    我想,第一個問題,您能否談談如何平衡降低成本和增加層數的明顯需求與增加市場份額的事實?

  • So would love to hear kind of your philosophy today, given this persistent oversupply that we're in.

    鑑於我們目前持續的供過於求,所以今天很想聽聽您的理念。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • So I think there's a number of -- I mean there's a number of levers there.

    所以我認為有很多——我的意思是有很多槓桿。

  • I mean first of all, we're always driving the road map forward -- the memory road map forward so we can drive the cost down, so making sure that we keep the innovation up there is very important.

    我的意思是,首先,我們一直在推動路線圖向前發展——記憶體路線圖向前發展,這樣我們就可以降低成本,因此確保我們保持創新非常重要。

  • And again, I've spoken about this many times.

    再說一遍,我已經多次談到這一點。

  • I think that's where our partnership with -- our JV partnership, we have a lot of cloud collaboration with Kioxia on the R&D side of this business as well, which is super helpful to driving the best cost position.

    我認為這就是我們與 Kioxia 的合作夥伴關係——我們的合資夥伴關係,我們在該業務的研發方面也與 Kioxia 進行了大量的雲端合作,這對於推動最佳成本定位非常有幫助。

  • And then we want to drive that, and then there's the mix in the fab of how we -- how fast we transition to the new nodes as far as the amount of supply we're going to get.

    然後我們想要推動這一點,然後是我們如何——我們以多快的速度過渡到新節點以及我們將獲得的供應量。

  • And some of that is based on the products we're putting it into and are those products ready to take the new nodes and just making sure we've got that mix all right and then making sure we look at that whole equation and understand where the industry is at on bit growth and where -- how much CapEx we're going to invest in those transitions to the new nodes to make sure that we keep the balance right and get the cost in the right spot.

    其中一些是基於我們正在投入的產品,這些產品是否準備好採用新節點,並確保我們已經得到了正確的組合,然後確保我們查看整個方程式並了解其中的位置該行業正處於增長階段,我們將在在新節點的過渡中投資多少資本支出,以確保我們保持正確的平衡並將成本控制在正確的位置。

  • Christopher James Muse - Senior MD, Head of Global Semiconductor Research & Senior Equity Research Analyst

    Christopher James Muse - Senior MD, Head of Global Semiconductor Research & Senior Equity Research Analyst

  • Very helpful.

    很有幫助。

  • And as a quick follow-up.

    並作為快速跟進。

  • Can you talk a bit about, I guess, where you stand in terms of visibility to cloud recovery?

    我想您能談談您在雲端恢復可見性方面的立場嗎?

  • Any green shoots there?

    那裡有綠芽嗎?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • I think as -- I think coming out of COVID, and we -- there's no doubt that there's been more adoption of the cloud, and we're hearing good things for our customers going into '21.

    我認為,隨著新冠疫情的爆發,毫無疑問,雲端技術得到了更多的採用,而且我們聽到了進入 21 世紀的客戶的好消息。

  • I think as Bob said, we see the HDD market is kind of slightly up next quarter.

    我認為正如鮑伯所說,我們看到硬碟市場下個季度略有上升。

  • And then into '21, we see greater recovery.

    然後進入 21 年,我們看到了更大的復甦。

  • So we're hearing good things from our customers about demand in the cloud.

    因此,我們從客戶那裡聽到了有關雲端需求的好消息。

  • Operator

    Operator

  • Our next question comes from Wamsi Mohan with Bank of America.

    我們的下一個問題來自美國銀行的瓦姆西·莫漢 (Wamsi Mohan)。

  • Wamsi Mohan - Director

    Wamsi Mohan - Director

  • You articulated 1 million drives in energy-assist currently.

    您目前在能源輔助方面鉸接了 100 萬個驅動器。

  • Where does that need to be for HDD margins to turn back higher?

    硬碟利潤率需要在哪裡才能回升?

  • And would that incremental demand for you be more on the cloud side or on-prem side?

    您的增量需求會更多出現在雲端還是本地端?

  • What are you expecting to see first?

    你最期待看到什麼?

  • And I have a follow-up.

    我有一個後續行動。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • I think -- well, we see -- I didn't -- can you expand on the second part of the question, incremental demand for...

    我想——好吧,我們看到——我沒有——你能詳細闡述問題的第二部分,即增量需求…

  • Wamsi Mohan - Director

    Wamsi Mohan - Director

  • For the high-capacity drives on cloud or on-prem.

    適用於雲端或本地端的大容量驅動器。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • I think we see some softness in the on-prem market.

    我認為我們看到本地市場有些疲軟。

  • But the cloud -- on the cloud side, we see very good demand there.

    但在雲端方面,我們看到那裡的需求非常好。

  • So I think that's where you'll see incremental demand.

    所以我認為這就是你會看到增量需求的地方。

  • As far as what does it need to be, I mean we're going to ramp very quickly on that platform, and we're always using that to drive yields up across the -- especially the head yield.

    至於需要什麼,我的意思是我們將在該平台上快速提升,並且我們總是使用它來提高整個收益率,尤其是頭部收益率。

  • So we just keep driving that as high as possible, and that will help drive the gross margins on the product.

    因此,我們只是繼續盡可能提高這一水平,這將有助於提高產品的毛利率。

  • I don't know if that exactly gets to your question.

    我不知道這是否準確地回答了你的問題。

  • But if not, we can follow-up.

    但如果沒有,我們可以跟進。

  • Wamsi Mohan - Director

    Wamsi Mohan - Director

  • Okay.

    好的。

  • And as a follow-up, your cash CapEx for this year is -- fiscal year is projected at $1.3 billion.

    作為後續行動,今年的現金資本支出預計為 13 億美元。

  • Your free cash flow is not tracking to that level, at least as of yet.

    你的自由現金流還沒有達到那個水平,至少到目前為止是這樣。

  • Should we assume that there won't be any meaningful other progress on either reducing debt or on capital return for this fiscal year?

    我們是否應該假設本財年在減少債務或資本回報方面不會取得任何有意義的其他進展?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Well, first of all, you're right, I mean our cash CapEx will be about $1.3 million.

    嗯,首先,你是對的,我的意思是我們的現金資本支出約為 130 萬美元。

  • And we're going to -- every incremental dollar of free cash flow, we're going to use to reduce our total debt.

    我們將用每增加一美元的自由現金流來減少我們的總債務。

  • So I'm not going to give a cash flow forecast for the year.

    所以我不會給今年的現金流預測。

  • But it's -- after investing in the business, it's the #1 priority.

    但在投資業務之後,這是第一要務。

  • Operator

    Operator

  • Our next question comes from Mehdi Hosseini with SIG.

    我們的下一個問題來自 SIG 的 Mehdi Hosseini。

  • Mehdi Hosseini - Senior Analyst

    Mehdi Hosseini - Senior Analyst

  • I have 2 follow-ups -- 2 questions with no follow-ups.

    我有 2 個後續問題——2 個沒有後續問題的問題。

  • I understand the rationale behind separating the flash from HDD.

    我了解將閃存與 HDD 分開的基本原理。

  • You have highlighted key strategic rationale, which mostly focus is on the top line and generating revenue synergy.

    您強調了關鍵的策略原理,其中主要關注的是營收和產生收入綜效。

  • I'm a little bit not sure about the cost synergies.

    我有點不確定成本綜效。

  • It seems to me that you would require -- you will be required to invest more in each sector before they become self-sufficient.

    在我看來,在每個部門自給自足之前,你將需要在每個部門進行更多投資。

  • So any color on cost or cost synergy or cost increase per business division would be very helpful.

    因此,任何有關成本或成本協同或每個業務部門成本增加的顏色都會非常有幫助。

  • And then my second question has to do with the mix, hard disk drive 18, 20.

    然後我的第二個問題與混合有關,硬碟 18、20。

  • It is interesting to me how you and your peer highlighting 20-terabyte samples and high-volume manufacturing into next year.

    我很感興趣的是,您和您的同行如何強調明年將有 20 TB 的樣品和大批量生產。

  • But we'll just begin to start with the 18 terabyte.

    但我們只是從 18 TB 開始。

  • Is that simply reflecting the competitive nature of the nearline?

    這是否僅僅反映了近線的競爭本質?

  • Or how should I think about 18 versus 20?

    或者我應該如何考慮 18 與 20?

  • Because to me, one could cannibalize the other.

    因為對我來說,一個人可以蠶食另一個人。

  • So any insight here would also be great.

    所以這裡的任何見解也都很棒。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Okay.

    好的。

  • So first of all, on the flash and HDD side, it's about focus on the road map and execution in different businesses.

    所以首先,在快閃記憶體和硬碟方面,重點放在不同業務的路線圖和執行情況。

  • I mean there -- I mean, obviously, they are different businesses.

    我的意思是——我的意思是,顯然,它們是不同的業務。

  • They're sold to the same customers.

    它們被賣給相同的客戶。

  • I think that's kind of to summarize.

    我認為這就是總結。

  • And I mean, what we're doing from an organization point of view is getting what I think is the best of both worlds is the fact that we've got 1 customer relationship and we got focus on 2 different portfolios.

    我的意思是,從組織的角度來看,我們正在做的是得到我認為兩全其美的事實,即我們擁有 1 個客戶關係,並且我們專注於 2 個不同的產品組合。

  • And that's going to lead to the best, I think, the best allocation of our resources into the portfolio.

    我認為,這將導致我們的資源在投資組合中得到最好的分配。

  • It's going to -- I think it's going to lead to better execution.

    我認為這將帶來更好的執行力。

  • I think when I got here, this was one of the things that I saw that if we could use more precision execution.

    我想當我到達這裡時,這是我看到的事情之一,如果我們可以使用更精確的執行。

  • We had -- there's just too many people that were thinking about 2 businesses at the same time as far as how you build them and drive the road map.

    我們有太多人同時考慮兩項業務,以及如何建立它們並推動路線圖。

  • And so getting that separated, yet keeping the customer-facing pieces together is the strategy from an organization perspective.

    因此,從組織的角度來看,將其分開,但將面向客戶的部分保持在一起是策略。

  • I think from a cost perspective, they each have R&D costs associated with them.

    我認為從成本角度來看,它們都有與之相關的研發成本。

  • This is about getting the most focus on that and getting -- making sure that, that investment is going into what is going to be the highest return from a portfolio perspective.

    這是要最關注這一點,並確保從投資組合的角度來看,該投資將獲得最高回報。

  • On 18 versus 20, the 20 in is an SMR product.

    在18與20中,20吋是SMR產品。

  • So it's a little different technology, and that's where you get the additional density from.

    所以這是一種有點不同的技術,這就是你獲得額外密度的地方。

  • So some customers have adopted SMR and some haven't.

    所以有些客戶採用了SMR,有些則沒有。

  • So they're not really -- I wouldn't really think about that as a substitute there.

    所以它們並不是——我真的不會考慮將其作為替代品。

  • If you've adopted SMR, you're going to get better density on the product.

    如果您採用了 SMR,您將獲得更好的產品密度。

  • Some customers have adopted it.

    部分客戶已採用。

  • Some are looking at it.

    有些人正在看著它。

  • And it's just another technique we can use to drive density in our products.

    這只是我們可以用來提高產品密度的另一種技術。

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Yes, Mehdi, if you're looking at that from a volume and a revenue production basis, it should really be the AT&T that will be the leader there.

    是的,邁赫迪,如果你從銷售和收入基礎來看,AT&T 確實應該成為那裡的領導者。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • There's no doubt about that.

    毫無疑問。

  • Operator

    Operator

  • Our next question comes from Shannon Cross with Cross Research.

    我們的下一個問題來自 Cross Research 的 Shannon Cross。

  • Shannon Siemsen Cross - Co-Founder, Principal & Analyst

    Shannon Siemsen Cross - Co-Founder, Principal & Analyst

  • First of all, David, I just wanted to say Ashley is a great hire.

    首先,大衛,我只想說阿什利是個很棒的員工。

  • We've met with them several times during his -- covering Dell, and he has a really good reputation within the company.

    在他報道戴爾期間,我們與他們見過幾次面,他在公司內享有很高的聲譽。

  • So I'm just curious, looking at the HDD business, what do you think are the first sort of key initiatives or area of focus for him coming in from his server background?

    所以我很好奇,看看硬碟業務,您認為他從伺服器背景進入的第一個關鍵舉措或重點領域是什麼?

  • And then I have a follow-up.

    然後我有一個後續行動。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • So first of all, thanks for the comments.

    首先,感謝您的評論。

  • I'm really, really happy that he's joining WD, and I've been super impressed with them as we've gone through the process to identify a leader.

    我真的非常非常高興他加入 WD,當我們經歷了確定領導者的過程時,我對他們印象非常深刻。

  • I think the issues around the HDD business are kind of some of the things that we've been talking about here.

    我認為圍繞硬碟業務的問題是我們一直在討論的一些問題。

  • It's a tremendous business.

    這是一項龐大的生意。

  • It's got -- it's pivoting from this what was a big client business into capacity enterprise.

    它正在從大客戶業務轉向產能企業。

  • Capacity enterprise is going to be a growth business for the foreseeable future.

    在可預見的未來,產能企業將成為一個成長型企業。

  • We have -- essentially, anybody that's building a public cloud is going to be using HDDs, and there's not going to be a substitute for a long time.

    本質上,任何建構公有雲的人都將使用 HDD,並且在很長一段時間內不會有替代品。

  • There's going to be complementary technologies of enterprise SSDs.

    企業級 SSD 將會出現互補技術。

  • But there's a very, very big difference in my mind in the SSD space, wherein on the client business, you have 2 technologies which are essentially substitutes.

    但在我看來,SSD 領域存在著非常非常大的差異,其中在客戶端業務中,有兩種​​技術本質上是替代品。

  • And then in the cloud space, they're complementary technologies.

    然後在雲端領域,它們是互補的技術。

  • So Ashley is going to focus on is how do we make that -- making sure we drive through that transition and we can deliver on, first of all, the enormous growth that our customers are asking us to deliver on.

    因此,阿什利將重點關注我們如何做到這一點——確保我們推動這一轉變,並且我們能夠首先實現客戶要求我們實現的巨大成長。

  • The growth rate in the public cloud is, I think we would all agree is huge scale and stunning growth.

    我想我們都同意,公有雲的成長率是巨大的規模和驚人的成長。

  • And our storage portfolio is the foundation of that, make sure that we can drive through this transition and return this business to growth and that we can meet that demand and then we can also focus on the profitability side of the equation and make sure we're delivering a high-value solution to our customers and that we're also delivering the right value to our shareholders as well and getting that balance correct.

    我們的儲存產品組合是其基礎,確保我們能夠推動這一轉型並使該業務恢復增長,並且我們能夠滿足該需求,然後我們還可以專注於盈利能力方面並確保我們'我們正在為客戶提供高價值的解決方案,同時也為股東提供正確的價值,並達到正確的平衡。

  • And I think very, very focused leadership on that by somebody that has been in the data center infrastructure business for a long time and understands the dynamics of the architecture and comes in and looks at the industry with a fresh perspective is something I'm very excited about.

    我認為,由長期從事資料中心基礎設施業務、了解架構動態、以全新視角看待這個行業的某人的領導力非常非常集中,這是我非常喜歡的。

  • Operator

    Operator

  • Our next question comes from Sidney Ho with Deutsche Bank.

    我們的下一個問題來自德意志銀行的 Sidney Ho。

  • Shek Ming Ho - Director & Senior Analyst

    Shek Ming Ho - Director & Senior Analyst

  • So I have 2 questions.

    所以我有兩個問題。

  • The first question is on hard drive.

    第一個問題是關於硬碟的。

  • The unit number, the 1 million unit energy-assist drive that you talked about, is that a production number or shipment number?

    這個數量,你說的100萬台能量輔助驅動器,是生產數量還是出貨數量?

  • And then how quickly does your production capacity could go up in the next few quarters?

    那麼接下來幾季你們的產能能成長多快?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • That's a production number.

    那是生產編號。

  • We had an aspirational goal to ship that many.

    我們有一個雄心勃勃的目標,就是運送這麼多。

  • We didn't quite make it on the shipment side.

    我們在發貨方面並沒有完全成功。

  • We're probably several hundred thousand short of that.

    我們可能還差幾十萬。

  • We still shipped a pretty fair number.

    我們仍然發貨了相當多的數量。

  • We expect to ramp that number into many, many millions over the next 2 to 3 to 4 quarters.

    我們預計在接下來的 2 到 3 到 4 個季度內,這個數字將增加到數百萬。

  • Like I said, this is the fastest ramping capacity point we've ever had in the company that anybody can remember.

    就像我說的,這是我們公司有史以來最快的產能提升點,任何人都記得。

  • I won't say in the history of the company because I haven't been here that long, but I talked to a lot of folks who've been here a long time, and the pace at which we've gone from 100,000 units to 1 million units is like 1/3 of the time of the previous capacity point.

    我不會說公司的歷史,因為我來的時間不長,但我和很多在這裡呆了很長時間的人談過,以及我們從 100,000 台發展的速度到100 萬台的時間相當於之前容量點的1/3。

  • And as we talked about, as we look into '21, we're hearing from our customers good demand trends that are going to drive adoption of that product.

    正如我們所討論的,當我們展望 21 世紀時,我們從客戶那裡聽到了良好的需求趨勢,這將推動該產品的採用。

  • And we're happy where the product is.

    我們對產品所在的地方感到很高興。

  • We're working through the qualifications on it at really big customers, and it will ramp quite quickly.

    我們正在對真正的大客戶進行資格認證,並且它會很快增加。

  • Operator

    Operator

  • Our next question comes from Mitch Steves with RBC Capital.

    我們的下一個問題來自 RBC Capital 的 Mitch Steves。

  • Mitchell Toshiro Steves - Analyst

    Mitchell Toshiro Steves - Analyst

  • So what I wanted to jump on really quick is just Intel divesting their NAND business.

    因此,我想快速關注的是英特爾剝離其 NAND 業務。

  • I realize it's new, but you guys probably had a chance to at least look at it and get an idea for what do you guys think.

    我意識到這是新的,但你們可能至少有機會看看它並了解你們的想法。

  • So how do you think this impacts Western Digital's NAND business going forward?

    那麼您認為這對西部數據的 NAND 業務未來有何影響?

  • Do you have any sort of comments you can make on what that divestiture does to the industry?

    您對此次剝離對產業的影響有何評論?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • I guess what I'll say is we have a -- I want to go back to what I, a little bit, talked about earlier.

    我想我要說的是——我想回到我之前談到的內容。

  • We have an unbelievably productive JV relationship with Kioxia that makes us a scale producer in the industry.

    我們與 Kioxia 建立了令人難以置信的富有成效的合資關係,這使我們成為行業中的規模生產商。

  • And I can imagine if I was in a position where I didn't have those scale benefits, I would be looking for how to get them.

    我可以想像,如果我所處的位置沒有這些規模優勢,我會尋找如何獲得它們。

  • And so it doesn't surprise me at all.

    所以我一點也不感到驚訝。

  • And I think we'll take it from there.

    我想我們會從那裡開始。

  • It's pretty new, but it doesn't surprise me that there is some consolidation in the industry.

    這是相當新的事物,但行業內出現一些整合並不令我感到驚訝。

  • Operator

    Operator

  • Our next question comes from Steven Fox with Fox Advisors.

    我們的下一個問題來自福克斯顧問公司的史蒂文·福克斯。

  • Steven Bryant Fox - Founder & CEO

    Steven Bryant Fox - Founder & CEO

  • Two quick questions from me.

    我問了兩個簡單的問題。

  • First of all, on the Fab7 launch, when that gets -- when that starts in terms of their ramp process there, should we expect some extra cost to be run through your income statement?

    首先,在 Fab7 發佈時,當他們的產能提升過程開始時,我們是否應該預期一些額外成本將計入您的損益表?

  • And then secondly, Dave, thinking about the new structure, you threw out a lot of different benefits to it.

    其次,戴夫,考慮到新的結構,你為它帶來了很多不同的好處。

  • If we look at, like, say, 12 months, what would be the key things that you would like to accomplish or metrics that would say that you've had a success in terms of splitting up the business this way?

    如果我們看看,比如說,12 個月,您希望完成的關鍵事情是什麼,或者表明您以這種方式拆分業務取得了成功的指標是什麼?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • It will be around execution and really clear road map fidelity that the road map we have in place and where we have our engineers focus is going to deliver the best value for our customers.

    我們制定的路線圖以及我們工程師關注的重點將圍繞執行和真正清晰的路線圖保真度為我們的客戶提供最佳價值。

  • And then that will, in turn, show up in our financial results.

    然後,這將反過來體現在我們的財務表現中。

  • I'll let Bob talk a little bit about the cost.

    我會讓鮑伯談談成本。

  • One thing I will say about Fab7.

    關於 Fab7 我要說一件事。

  • It's very different than K1, first of all, in the fact that it's an expansion of an existing site.

    它與 K1 有很大不同,首先,它是現有站點的擴展。

  • I'll also say it's something -- in this industry, in this market, we have to continue to invest.

    我還要說的是,在這個產業、這個市場,我們必須繼續投資。

  • And so it's in that vein.

    正是如此。

  • And it's also just starting to build the shell of the building.

    而且大樓的外殼也剛開始建造。

  • So I think it's going to be a while before we get to the details of spending.

    所以我認為我們還需要一段時間才能了解支出細節。

  • But Bob, do you want to say a little more?

    但是鮑勃,你想多說一點嗎?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Yes.

    是的。

  • I think you hit the key points, Dave.

    我認為你抓住了關鍵點,戴夫。

  • I mean we're still understanding the details of how it's going to evolve.

    我的意思是我們仍在了解它將如何演變的細節。

  • It looks like the shell will be coming online somewhere in the spring of '22.

    看起來這個 shell 會在 22 年春天的某個時候上線。

  • From our standpoint, like Dave said, it's very different.

    從我們的角度來看,正如戴夫所說,這是非常不同的。

  • It's an additional fab on a major site, and there will not be nearly the incremental costs that we saw in Kitakami.

    這是一個主要站點上的額外晶圓廠,幾乎不會出現我們在北上看到的增量成本。

  • So it will be pretty modest.

    所以這將是相當溫和的。

  • And that's what we saw with Fab6 there as well.

    這也是我們在 Fab6 中看到的。

  • So it won't be anything like what we've experienced with K1.

    所以它不會像我們在 K1 上經歷的那樣。

  • Operator

    Operator

  • Our next question comes from Ananda Baruah with Loop Capital.

    我們的下一個問題來自 Loop Capital 的 Ananda Baruah。

  • Ananda Prosad Baruah - MD

    Ananda Prosad Baruah - MD

  • Two quick ones, if I could.

    如果可以的話,兩個快點。

  • With K1 costs coming off, Bob, I think you mentioned this quarter, December quarter will be the final quarter.

    隨著 K1 成本的下降,鮑勃,我想您提到本季度,12 月季度將是最後一個季度。

  • Is it as simple as for -- going forward, starting March quarter just removing the $50 million from the P&L for the balance?

    是不是就這麼簡單——展望未來,從 3 月季度開始,只需從損益表中扣除 5000 萬美元作為餘額?

  • Well, I guess, just sort of ongoing, which is about $200 million a year.

    嗯,我想,只是正在進行中,每年大約 2 億美元。

  • And then I'll ask you -- ask my follow-up.

    然後我會問你——問我的跟進人員。

  • It's pretty short, too.

    它也很短。

  • In your prepared remarks, you made mention, I think, just sort of -- and I want the context on this, expect the 18 terabytes to be the sweet spot in the industry.

    我想,在您準備好的發言中,您提到了這一點,我想了解相關背景,預計 18 TB 將成為該行業的最佳選擇。

  • Can you give us a time frame on that?

    您能給我們一個時間表嗎?

  • And really, what I'm asking is, is that what you think for an indefinite period of time.

    事實上,我要問的是,這就是你在無限期的時間內的想法。

  • I just want to be clear on that.

    我只是想澄清這一點。

  • So those two things.

    所以這兩件事。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • So on the second one, yes, we do expect that probably a couple of quarters out.

    因此,對於第二個項目,是的,我們確實預計可能會在幾個季度後完成。

  • We see all of the big customers interested in that capacity point.

    我們看到所有大客戶都對該容量點感興趣。

  • I mean, obviously, at different points in time, but we're engaged with lots of customers on that capacity point.

    我的意思是,顯然,在不同的時間點,但我們在該容量點上與許多客戶進行了接觸。

  • But it will be a quarter or 2. Bob, on the K1.

    但這將是四分之一或二分之一。

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Yes.

    是的。

  • On the K1, I think most of the $50 million will either be going away as it'll go out as part of the COGS on products we're shipping or it'll be in inventory.

    對於 K1,我認為 5000 萬美元中的大部分要么會消失,因為它將作為我們正在運輸的產品的 COGS 的一部分而消失,要么會進入庫存。

  • But you're going to have a lot of dynamics between here and the March quarter in terms of what goes on with cost of sales.

    但從現在到三月這個季度,銷售成本的變化將會有很多變化。

  • Operator

    Operator

  • Our next question comes from Vijay Rakesh with Mizuho.

    我們的下一個問題來自 Mizuho 的 Vijay Rakesh。

  • Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst

    Vijay Raghavan Rakesh - MD of Americas Research & Senior Semiconductor Analyst

  • David and Bob, just a couple of questions here.

    大衛和鮑勃,這裡只是幾個問題。

  • When you look at the NAND side, I think you had said in the past, BiCS5, (inaudible) gives you a much better cost on the NAND side.

    當你看 NAND 方面時,我想你過去曾說過,BiCS5(聽不清楚)在 NAND 方面為你提供了更好的成本。

  • So just wondering what the mix was on that side now.

    所以只是想知道現在那邊的組合是什麼。

  • And how do you see that into first half?

    您如何看待上半場的情況?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Do you want me to take that?

    你想讓我接受嗎?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • BiCS5 is still a very low percentage of the total.

    BiCS5 所佔比例仍然很低。

  • I mean mostly shipping into retail right now.

    我的意思是現在主要進入零售業。

  • And that will be the case through at least the first half of the calendar year.

    至少今年上半年都會出現這種情況。

  • And then I think you'll start to see more BiCS5.

    然後我想您會開始看到更多 BiCS5。

  • Operator

    Operator

  • Our next question comes from Nik Todorov with Longbow.

    我們的下一個問題來自長弓的尼克·托多羅夫。

  • Nikolay Todorov - Analyst

    Nikolay Todorov - Analyst

  • I'd like to hear your thoughts on whether you need further HDD capacity footprint optimization.

    我想聽聽您對是否需要進一步優化硬碟容量佔用的想法。

  • Essentially, I want to understand if nearline demand recovery and the ramp-up of energy is just the only 2 factors that preclude you from gross margin recovery on the HDD side?

    從本質上講,我想了解近線需求復甦和能源成長是否只是阻礙 HDD 毛利率復甦的唯一兩個因素?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Yes.

    是的。

  • I think I mean there's a couple of things.

    我想我的意思是有幾件事。

  • Bob talked about a couple of things.

    鮑伯談到了一些事情。

  • One is COVID expenses.

    一是新冠肺炎費用。

  • We're still incurring some relatively significant COVID expenses.

    我們仍然產生一些相對較大的新冠肺炎費用。

  • I hope for all of us, those are transitory, and we get back to normal as soon as possible.

    我希望我們所有人,這些都是暫時的,我們盡快恢復正常。

  • We have some mix issues in there.

    我們那裡有一些混合問題。

  • Retail has been strong.

    零售業表現強勁。

  • I think we started talking about retail being strong back in June, and it's continued.

    我想我們早在六月就開始談論零售業的強勁,而且這種情況仍在繼續。

  • And so that drives some demand and some mix, which is not as good as capacity enterprise.

    因此,這會推動一些需求和一些組合,這不如產能企業。

  • But then -- and again, but the big picture is there's a large shift going into capacity enterprise.

    但話又說回來,大局是產能企業發生了巨大轉變。

  • And as that starts to be -- as that continues to be more and more of the portfolio will drive the margins higher.

    隨著這種情況的開始,越來越多的投資組合將推高利潤率。

  • Operator

    Operator

  • Our next question comes from James Suva with Citigroup Investment Research.

    我們的下一個問題來自花旗集團投資研究部的詹姆斯‧蘇瓦。

  • James Dickey Suva - MD & Research Analyst

    James Dickey Suva - MD & Research Analyst

  • And Bob, it's probably a question for you.

    鮑勃,這可能是你的問題。

  • And I only have one question because I'm just a very simple guy.

    我只有一個問題,因為我只是一個很簡單的人。

  • Why aren't gross margins stronger in the quarter out?

    為什麼本季毛利率沒有走強?

  • Is it due to K1 or other things?

    是K1的原因還是其他原因?

  • Or why aren't margins stronger?

    或者為什麼利潤率沒有提高?

  • What are the puts and takes?

    賣出和賣出是什麼?

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • When you say the quarter out, you mean December quarter?

    當您說季度結束時,您是指 12 月季度嗎?

  • James Dickey Suva - MD & Research Analyst

    James Dickey Suva - MD & Research Analyst

  • December.

    十二月。

  • Yes.

    是的。

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Well, again, I tried to talk about it on the hard drive side, the mix is not that good right now as we're still seeing digestion with capacity enterprise, and we're seeing retail stronger, which tends to be a lower-margin business.

    好吧,我再次嘗試在硬碟方面談論它,現在的組合並不是那麼好,因為我們仍然看到容量企業的消化,並且我們看到零售業更加強勁,這往往是較低的-保證金業務。

  • So that's kind of the story on the hard drives.

    這就是硬碟上的故事。

  • But I think we're getting ourselves very well positioned for next year there.

    但我認為我們已經為明年做好了充分準備。

  • And then on the flash side, again, we saw some stabilization in pricing in the transactional markets, but we're seeing pressure this quarter from the OEM customers.

    然後,在快閃記憶體方面,我們再次看到交易市場定價有所穩定,但本季我們看到 OEM 客戶的壓力。

  • And hopefully, that'll start to get better from a price perspective as we move forward.

    希望隨著我們的前進,從價格角度來看,情況會開始變得更好。

  • But those are really the major dynamics for the December quarter.

    但這些確實是 12 月季度的主要動態。

  • Operator

    Operator

  • The last question comes from Kevin Cassidy with Rosenblatt Black Securities.

    最後一個問題來自 Rosenblatt Black Securities 的 Kevin Cassidy。

  • Kevin Edward Cassidy - Senior Semiconductor Research Analyst

    Kevin Edward Cassidy - Senior Semiconductor Research Analyst

  • Just a simple question.

    只是一個簡單的問題。

  • With your new business unit structure, how does the customer see changes for Western Digital?

    對於新的業務部門結構,客戶如何看待西部資料的變化?

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Primarily, our customers see our company through our go-to-market teams.

    我們的客戶主要透過我們的行銷團隊來了解我們的公司。

  • And I think that's a part of -- again, I've talked about this in the best of both worlds.

    我認為這是——再次,我已經在兩全其美的情況下談論過這個問題了。

  • The go-to-market team is still integrated.

    上市團隊仍然是整合的。

  • They represent the whole portfolio.

    他們代表了整個投資組合。

  • So I think from the -- for the most part, the customers will see the company the same way.

    所以我認為,在大多數情況下,客戶也會以同樣的方式看待公司。

  • However, really good general managers spend a lot of time talking to customers to make sure they really understand the market, they understand where the market is headed.

    然而,真正優秀的總經理會花很多時間與客戶交談,以確保他們真正了解市場,並了解市場的發展方向。

  • So I think customers will see 2 very experienced, very talented general managers that are talking to them about where the portfolio is going and where their needs are going and making sure that we have those 2 things aligned.

    因此,我認為客戶會看到兩位經驗豐富、才華橫溢的總經理,他們會與他們討論產品組合的走向以及他們的需求,並確保我們將這兩件事保持一致。

  • Operator

    Operator

  • I would now like to turn the call back over to the CEO, David Goeckeler, for closing remarks.

    現在我想將電話轉回給執行長 David Goeckeler,讓其致閉幕詞。

  • David V. Goeckeler - CEO & Director

    David V. Goeckeler - CEO & Director

  • Thank you.

    謝謝。

  • I'd like to take this opportunity to thank our shareholders, customers, and importantly, our employees for your support of Western Digital.

    我想藉此機會感謝我們的股東、客戶,更重要的是我們的員工對西部數據的支持。

  • There has been a lot of developments over the last year, and we value your confidence and trust in us to deliver long-term success and value.

    去年我們取得了許多進展,我們非常重視您對我們的信心和信任,以實現長期的成功和價值。

  • One important component of our long-term success is promoting responsible and sustainable business practices.

    我們長期成功的重要組成部分之一是促進負責任和永續的商業實踐。

  • We recently released our 2020 sustainability report and are proud to share all of the progress we have made.

    我們最近發布了 2020 年永續發展報告,並自豪地分享我們所取得的所有進展。

  • Please visit our website to see this report and to stay up-to-date on upcoming events.

    請訪問我們的網站查看此報告並了解即將舉行的活動的最新資訊。

  • Thank you for joining us today.

    感謝您今天加入我們。

  • Robert K. Eulau - Executive VP & CFO

    Robert K. Eulau - Executive VP & CFO

  • Thanks, everyone.

    感謝大家。

  • Operator

    Operator

  • This concludes today's conference call.

    今天的電話會議到此結束。

  • Thank you for joining.

    感謝您的加入。

  • You may now disconnect.

    您現在可以斷開連線。