Western Digital (NASDAQ: WDC) has reported its Q2 FY2024 results, meeting analysts’ expectations with a revenue of $3.03 billion, down 2.4% year on year. The company also provided an optimistic sales guidance for the next quarter, expecting revenue to reach around $3.3 billion, surpassing analysts’ estimates by 3.6%.

In the same quarter, Western Digital incurred a non-GAAP loss of $0.69 per share, a decrease from the loss of $0.42 per share in the corresponding period last year. The company’s free cash flow showed improvement, standing at -$176 million compared to the previous quarter’s -$557 million. Additionally, Western Digital saw a reduction in inventory days outstanding, dropping to 115 from 120 in the previous quarter. However, its gross margin (GAAP) decreased to 16.2% from 17% in the same quarter last year.

Western Digital’s CEO, David Goeckeler, expressed confidence in the company’s performance, attributing the positive results to the structural changes and strategic execution in both the flash and HDD businesses.

Established in 1970, Western Digital is a prominent manufacturer of hard disk drives, SSDs, and flash memory. The company plays a crucial role in meeting the growing demand for memory chips driven by the rapid expansion of data generation and the increasing need for processing power across various sectors, including consumer devices, data center servers, and cloud infrastructure. Furthermore, factors such as machine learning and the proliferation of media-rich digital content are contributing to the escalating demand for storage solutions.

As a major player in the memory semiconductor industry, Western Digital’s performance reflects the cyclical nature of the sector, influenced by various market dynamics.