Western Digital -5.6% on EPS miss, weak revenue mix

Western Digital (NASDAQ:WDC) -5.6% after reporting in-line Q3 revenue and an EPS miss. Results were weighed down with $110M in inventory charges in the cost of revenue primarily due to flash memory products containing DRAM.

Peer Seagate (NASDAQ:STX) is down 1.1%.

Revenue breakdown: Client Devices, $1.63B (last year: $2.31B); Client Solutions, $804M ($1.04B); Data Center and Devices, $1.25B ($1.66B).

HDD units were 27.8M (consensus: 28.06M) with Client compute at 12.9M (12.54M), Non-compute at 9.3M (9.58M), and data center at 5.6M (5.94M).

ASP was $73 versus the $67.02 consensus.

Gross margin was 25.3%, below the 27. 9% estimate.

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