Eliminating certain non-GAAP adjustments, the company reported non-GAAP operating income of $589 million and non-GAAP net income of $424 million. Non-GAAP operating income in the year-ago quarter was $1.4 billion and non-GAAP net income was $1.2 billion.

Key Highlights:

Results generally within WD Corp. guidance ranges

• Demand trends exhibited a negative bias as quarter progressed
• Geopolitical and macroeconomic conditions contributed to customers having a more cautious outlook
• Flash industry dynamics remain challenging

Client Devices: Comprises of notebook and desktop HDD, consumer electronics HDD, client SSD, embedded, wafer sales and licensing and royalties. The revenue for this category witnessed 16% decline YoY. Strong growth in cSSD revenue, weak demand for mobility and embedded applications and flash pricing pressure were the key reasons for this decline.

Client Solutions: Comprises of branded HDD, branded flash, removables and licensing and royalties. Aggressive pricing environment for both flash and HDD products, strong y/y increase in average capacities in flash and HDD resulted in 25% revenue decline YoY of this category.

Data Center Devices & Solutions: Comprises of enterprise HDD, enterprise SSD, data center software, data center solutions and licensing and royalties. Temporary slowdown in cloud spending has impacted the revenue which also declined 25% YoY. However, NVMe eSSDs ramp and a recovery in capacity enterprise HDD is expected in 2H CY2019.