Latest news with #IrvingTan
Business Times
22-05-2025
- Business
- Business Times
From Singapore to San Jose: Tech veteran Irving Tan rides AI wave in his latest role
[SINGAPORE] As chief executive of Western Digital, a major hard disk drive (HDD) maker, Irving Tan keeps a tight schedule. Splitting his time between Singapore and San Jose, Tan is up from about 4.30 am and starts work within the hour. He steers the company through 'extremely varied' issues, from discussions on tariffs and engineering roadmaps to setting out company values and engaging the media and investors. 'There's really no typical day, and that's one of the exciting things about the job. Through a 12-hour day, you toggle across many different things,' said Tan, who is also chairman of inflight caterer Sats. An engineer by training and a Lego enthusiast, he relishes problem-solving and having 'the mental ability to switch from one topic to the other'. Tan is this year's Outstanding Overseas Executive at the Singapore Business Awards. He has had a storied career in the global tech industry – including 13 years at US tech giant Cisco – and is still going strong. The 55-year-old rose to the helm of Western Digital in February, after the company spun off its flash business to focus on HDDs. Having been through many tech cycles, he is now riding the artificial intelligence (AI) wave – which he cites as a strong tailwind for the data storage industry. SEE ALSO Donald Trump is proving disastrous for Big Tech GET BT IN YOUR INBOX DAILY Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up VIEW ALL This is because AI is now being used to produce the very data that other AI models are trained on. For instance, an autonomous vehicle company can tap AI to create synthetic data on routes and landscapes, which can in turn train the AI model that powers the self-driving vehicle. 'And so for every model that's created, this data that gets generated needs to be stored. That's really fuelling the data generation and data storage industry,' he said. The rise of disruptors, such as China's DeepSeek, is a further boost. 'If you can make the cost of deploying AI lower, you can make it more pervasive. Again, more data gets generated, more data gets stored.' Formative experiences A mechanical engineering graduate from Nanyang Technological University (NTU), Tan kicked off his career at energy company ExxonMobil as a graduate management trainee. The job not only taught him about a range of functions – such as finance, sales and marketing, and operations – but also provided him valuable insights. At one point, Tan grew frustrated with bureaucratic processes that did not add value, such as reports being created for their own sake and being left unread. He approached his manager. 'I was a young, idealistic, fresh graduate, and I used to complain to him: 'All these things are broken',' Tan recalled. The manager's response has stayed with him: 'Someday you'll be in a position to change that. Remember all the things that don't work well, and when you're in a position, make sure you go and fix it.' Fixing problems indeed turned out to be Tan's next career move. After earning a Masters of Business Administration degree from NTU, he joined consulting firm Kearney as a principal. Tan worked in Australia and across South-east Asia, tackling business challenges in industries ranging from energy to telcos to fast-moving consumer goods. 'It's either a transformation of a company or it's a growth agenda or something to create more value for their shareholders. It's always complex, large, enterprise-level problems, so I really enjoyed my time there,' he said. Tan later moved on to the tech world, with roles at Cisco and HP. At Cisco, he climbed the ranks for more than a decade to become the company's chief of operations, and eventually the chairman for Asia-Pacific, Japan and China. Being interviewed for a leadership role within Cisco turned out to be another formative experience. Former Cisco chief executive John Chambers asked Tan what he had failed at recently. 'I thought long and hard about it and I said: 'John, honestly I'm not trying to avoid the question – I can't think of anything',' Tan recalls. 'And his response actually left a very indelible mark on me, which I keep to today. He said: 'Well, that means you're not trying hard enough. We're going to give you a big role. We need to really push the envelope. And therefore I need you to fail. If you don't fail, it means you're not pushing the envelope'.' Taking the plunge Tan is now focused on pushing the envelope at Western Digital. Beyond the core HDD business, he is also pursuing moonshot projects that leverage Western Digital's deep technical expertise built over 55 years. 'We have a whole research team that specialises in material science, in electromagnetics, in servo-mechanical, firmware and semiconductor development. One of the things we're looking at is... are there new areas that we can apply this knowledge to?' One possibility the company is exploring is the application of its know-how in magnetic technology to the medical imaging industry, where there is interest in innovations such as reducing the size of scanners down to a probe. 'I want innovation to be at the heart of everything that we do so we can continue to modernise and transform,' said Tan. He acknowledged the challenges ahead. Asked about the risk of US-China tensions, Tan noted that Western Digital operates in a 'very dynamic' environment with a global supply chain. It has key customers in both China and the US and has to 'deal with the geopolitical dynamic'. 'We continue to work closely to support our customers in those markets and (work) with the various administrations in those countries as well to ensure that they see the value of the business that we're providing, enabling us to operate.' Even as the world gets complex, Tan sees rich learning opportunities in leading a global company. He credits his wife and two children, aged 17 and 19, with allowing him to pursue the opportunities he has thus far. Tan hopes that more young Singaporeans will take up corporate leadership roles outside the city-state. 'Singapore is a very comfortable place to live. It's a very safe place and so it's hard to leave. But there's a big ocean out there,' he said. 'There's a lot of experiences to be had, there's a lot of learning that you can get out of it. I will encourage them to take the plunge.'
Yahoo
14-05-2025
- Business
- Yahoo
WDC Q1 Earnings Call: Storage Demand and Margin Expansion Offset Market Uncertainty
Leading data storage manufacturer Western Digital (NASDAQ: WDC) reported Q1 CY2025 results topping the market's revenue expectations , but sales fell by 33.6% year on year to $2.29 billion. The company expects next quarter's revenue to be around $2.45 billion, close to analysts' estimates. Its non-GAAP profit of $1.36 per share was 22.7% above analysts' consensus estimates. Is now the time to buy WDC? Find out in our full research report (it's free). Revenue: $2.29 billion vs analyst estimates of $2.25 billion (33.6% year-on-year decline, 1.9% beat) Adjusted EPS: $1.36 vs analyst estimates of $1.11 (22.7% beat) Adjusted EBITDA: $680 million vs analyst estimates of $639 million (29.6% margin, 6.4% beat) Revenue Guidance for Q2 CY2025 is $2.45 billion at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q2 CY2025 is $1.45 at the midpoint, above analyst estimates of $1.14 Operating Margin: 33.1%, up from 7.9% in the same quarter last year Free Cash Flow was $380 million, up from -$37 million in the same quarter last year Inventory Days Outstanding: 86, down from 113 in the previous quarter Market Capitalization: $17.1 billion Western Digital's first quarter was marked by resilient performance in the face of year-on-year sales declines, driven by ongoing strength in data center storage demand and operational discipline. CEO Irving Tan attributed the quarter's results to rapid adoption of high-capacity hard drives and successful management of the complex business separation, highlighting collaboration with hyperscale customers and the company's ability to deliver technology upgrades without major new capital investment. Looking ahead, management's guidance reflects confidence in continued sequential growth, underpinned by long-term customer agreements and ongoing innovation in storage technology. Tan acknowledged persistent risks from tariffs and global trade tensions, but emphasized visibility into customer demand through 2026 and the ramp-up of new products. As Tan stated, 'We see demand continuing to be strong and robust throughout the calendar year '25 and into the middle of calendar year '26 as well.' Management focused on product innovation and operational efficiency as the main forces behind the quarter's results and upcoming strategy. High-capacity drive adoption: Western Digital's 11-disk drives, offering up to 32 terabytes of storage, have seen significant uptake, with over 800,000 units shipped in the quarter and plans to exceed 1 million next quarter. This rapid adoption supports exabyte growth without requiring major new capital expenditures. Data center and hyperscale focus: The bulk of revenue was driven by strong demand from hyperscale data center customers, supported by long-term agreements extending through the first half of 2026. These agreements provide visibility and stability in planning supply and production. Operational discipline post-separation: The company completed the separation of its Flash business and maintained cost discipline during the transition, resulting in improved operating margins and free cash flow. Tariff and trade mitigation: Cross-functional teams have been set up to manage evolving tariff risks and global supply chain shifts, aiming to minimize disruptions and prepare for potential changes in trade policy. Leadership and product strategy: The addition of Chief Product Officer Ahmed Shihab, with experience at major cloud providers, signals a continued emphasis on aligning product development with large-scale customer requirements. Management's outlook for the next quarter and year centers on ongoing strength in data center demand, further product innovation, and prudent navigation of external risks. Hyperscale customer agreements: Long-term contracts with major data center customers are expected to underpin stable demand and support sequential growth through 2026, reducing exposure to sudden market swings. Product innovation roadmap: The introduction of higher-capacity drives, including upcoming 28TB and 36TB platforms, as well as ongoing work on HAMR (Heat-Assisted Magnetic Recording) technology, is expected to sustain pricing power and margin expansion. Tariff and supply chain risks: Management identified tariffs and global trade policy as ongoing risks, noting that cross-functional teams are in place to adapt to changing conditions and maintain operational resilience. Erik Woodring (Morgan Stanley): Asked about the company's approach to dividends and share buybacks; management reiterated plans to increase shareholder returns as leverage targets are met. Aaron Rakers (Wells Fargo): Inquired about the impact of tariffs on guidance; management explained that current guidance accounts for known tariff risks and that most production is outside China, limiting direct exposure. Karl Ackerman (BNP Paribas): Questioned capacity additions and demand from non-hyperscale customers; management emphasized that technology improvements, not new factories, will drive exabyte growth, and noted steady demand trends across customer segments. Asiya Merchant (Citigroup): Probed for signs of double-ordering by hyperscale customers; management stated that order patterns align with long-term agreements and do not indicate excess inventory buildup. Mehdi Hosseini (SIG): Asked about component sourcing and the impact of industry M&A management described a diversified supplier base and ongoing efforts to vertically integrate when advantageous. In the coming quarters, the StockStory team will monitor (1) the continued adoption of high-capacity drives amid shifting data center demand, (2) the company's ability to sustain strong operating margins despite external cost pressures like tariffs, and (3) progress on product innovation milestones, including the development and qualification of HAMR technology. Updates on the disposition of the retained ScanDisk stake and success in managing inventory levels will also be important indicators. Western Digital currently trades at a forward P/E ratio of 10.2×. Should you double down or take your chips? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Western Digital Authorizes New $2.0 Billion Share Repurchase Program
SAN JOSE, Calif., May 13, 2025--(BUSINESS WIRE)--Western Digital Corp. (Nasdaq: WDC) today announced that its Board of Directors has authorized a new $2.0 billion share repurchase program. The repurchase authorization is effective immediately. Share repurchases may be made on the open market or in privately negotiated transactions and may be made pursuant to a Rule 10b5-1 plan. "The share repurchase program underscores our strong confidence in Western Digital's future, the depth of our product portfolio, and the long-term value we see in our business," said Irving Tan, Chief Executive Officer of Western Digital. "At our Investor Day, we laid out the three pillars of our shareholder-friendly capital allocation strategy: reinvesting in the business, reducing debt, and returning capital to shareholders. Following the recently announced initiation of our quarterly dividend, this repurchase program represents another key step in delivering long-term value for our shareholders." The amount and timing of share repurchases will depend on market conditions and other corporate considerations. The company may suspend or discontinue the share repurchase program at any time. About Western Digital Western Digital empowers the systems and people who rely on data. Consistently delivering massive capacity, high quality and low TCO, Western Digital is trusted by hyperscale cloud providers, enterprise data centers, content professionals and consumers around the world. Core to its values, the company recognizes the urgency to combat climate change and is on a mission to design storage technologies that not only meet today's data demands but also contribute to a more climate-conscious future. Follow Western Digital on LinkedIn and learn more at Forward-Looking Statements This press release contains forward-looking statements within the meaning of federal securities laws, including statements concerning the company's capital allocation strategy, including potential repurchases in the future by the company of its common stock. These forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: adverse global or regional conditions, including new or additional tariffs or trade restrictions; volatility in demand for Western Digital's products; inflation; increases in interest rates and an economic recession; future responses to and effects of global health crises; the impact of business and market conditions; the outcome and impact of Western Digital's completed separation of its HDD and Flash businesses, including with respect to stock price volatility and the diversion of management's attention from ongoing business operations and opportunities; the impact of competitive products and pricing; Western Digital's development and introduction of products based on new technologies and expansion into new data storage markets; risks associated with cost saving initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and Western Digital's strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; Western Digital's level of debt and other financial obligations; changes to Western Digital's relationships with key customers; compromise, damage or interruption from cybersecurity incidents or other data system security risks; actions by competitors; any decisions to reduce or discontinue paying cash dividends; Western Digital's ability to achieve its greenhouse gas emissions reduction and other sustainability goals; the impact of international conflicts; risks associated with compliance with changing legal and regulatory requirements and the outcome of legal proceedings; and other risks and uncertainties listed in Western Digital's filings with the Securities and Exchange Commission (the "SEC"), including Western Digital's Annual Report on Form 10-K filed with the SEC on August 20, 2024 and Quarterly Report on Form 10-Q filed with the SEC on May 2, 2025, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. © 2025 Western Digital Corporation or its affiliates. All rights reserved. Western Digital, the Western Digital design, and the Western Digital logo are registered trademarks or trademarks of Western Digital Corporation or its affiliates in the US and/or other countries. All other marks are the property of their respective owners. View source version on Contacts Ambrish Western Digital Investor Relationsinvestor@ Western Digital Media Sign in to access your portfolio
Business Wire
13-05-2025
- Business
- Business Wire
Western Digital Authorizes New $2.0 Billion Share Repurchase Program
SAN JOSE, Calif.--(BUSINESS WIRE)--Western Digital Corp. (Nasdaq: WDC) today announced that its Board of Directors has authorized a new $2.0 billion share repurchase program. The repurchase authorization is effective immediately. Share repurchases may be made on the open market or in privately negotiated transactions and may be made pursuant to a Rule 10b5-1 plan. 'The share repurchase program underscores our strong confidence in Western Digital's future, the depth of our product portfolio, and the long-term value we see in our business,' said Irving Tan, Chief Executive Officer of Western Digital. 'At our Investor Day, we laid out the three pillars of our shareholder-friendly capital allocation strategy: reinvesting in the business, reducing debt, and returning capital to shareholders. Following the recently announced initiation of our quarterly dividend, this repurchase program represents another key step in delivering long-term value for our shareholders.' The amount and timing of share repurchases will depend on market conditions and other corporate considerations. The company may suspend or discontinue the share repurchase program at any time. About Western Digital Western Digital empowers the systems and people who rely on data. Consistently delivering massive capacity, high quality and low TCO, Western Digital is trusted by hyperscale cloud providers, enterprise data centers, content professionals and consumers around the world. Core to its values, the company recognizes the urgency to combat climate change and is on a mission to design storage technologies that not only meet today's data demands but also contribute to a more climate-conscious future. Follow Western Digital on LinkedIn and learn more at Forward-Looking Statements This press release contains forward-looking statements within the meaning of federal securities laws, including statements concerning the company's capital allocation strategy, including potential repurchases in the future by the company of its common stock. These forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: adverse global or regional conditions, including new or additional tariffs or trade restrictions; volatility in demand for Western Digital's products; inflation; increases in interest rates and an economic recession; future responses to and effects of global health crises; the impact of business and market conditions; the outcome and impact of Western Digital's completed separation of its HDD and Flash businesses, including with respect to stock price volatility and the diversion of management's attention from ongoing business operations and opportunities; the impact of competitive products and pricing; Western Digital's development and introduction of products based on new technologies and expansion into new data storage markets; risks associated with cost saving initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and Western Digital's strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; Western Digital's level of debt and other financial obligations; changes to Western Digital's relationships with key customers; compromise, damage or interruption from cybersecurity incidents or other data system security risks; actions by competitors; any decisions to reduce or discontinue paying cash dividends; Western Digital's ability to achieve its greenhouse gas emissions reduction and other sustainability goals; the impact of international conflicts; risks associated with compliance with changing legal and regulatory requirements and the outcome of legal proceedings; and other risks and uncertainties listed in Western Digital's filings with the Securities and Exchange Commission (the 'SEC'), including Western Digital's Annual Report on Form 10-K filed with the SEC on August 20, 2024 and Quarterly Report on Form 10-Q filed with the SEC on May 2, 2025, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances. © 2025 Western Digital Corporation or its affiliates. All rights reserved. Western Digital, the Western Digital design, and the Western Digital logo are registered trademarks or trademarks of Western Digital Corporation or its affiliates in the US and/or other countries. All other marks are the property of their respective owners.
Yahoo
02-05-2025
- Business
- Yahoo
Why Western Digital Corporation (WDC) Surged on Wednesday
We recently published an article titled . In this article, we are going to take a look at where Western Digital Corporation (NASDAQ:WDC) stands against the other stocks that soared on Wednesday. The stock market finished Wednesday's trading on a lackluster note, with the three major indices finishing mixed, as investors digested news of the US economy's contraction in the first quarter of the year that triggered fears of a possible recession. Among all major indices, only the Dow Jones and S&P 500 ended in the green, up 0.35 percent and 0.15 percent, respectively. In contrast, the tech-heavy Nasdaq dipped by 0.09 percent. Ten firms, on the other hand, managed to record strong gains, thanks to impressive earnings performance and optimistic outlooks for the rest of the year. We have named 10 of the top-performing stocks on Wednesday and detailed the reasons behind their gains. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A data center filled with racks of hard disk drives and solid state drives. Western Digital Corporation (NASDAQ:WDC) saw its share prices jump by 7.98 percent on Wednesday to finish at $43.86 apiece as investor sentiment was fueled by its strong earnings performance in the third quarter of fiscal year 2025. In its earnings release, Western Digital Corporation (NASDAQ:WDC) said that net income in the past quarter expanded by 285 percent to $520 million from $135 million in the same period a year earlier, while net revenues jumped by 30.9 percent to $2.294 billion from $1.752 billion year-on-year. In the first nine months alone, the company swung to a net income of $1.607 billion from a net loss of $837 million in 2023, as net revenues surged by 60 percent to $6.9 billion from $4.3 billion in the same comparable period. 'Western Digital executed well in its fiscal third quarter, achieving revenue at the high end of our guidance range and gross margin over 40%,' said CEO Irving Tan. 'Even in a world marked by geopolitical uncertainty and shifting tariff dynamics, one thing remains constant: the exponential growth of data. When it comes to storing that data, at scale, no technology rivals the cost-efficiency and reliability of HDDs. With our rich portfolio of storage products, WD is uniquely positioned to meet our customers' mass storage needs.' Overall WDC ranks 6th on our list of the stocks that soared on Wednesday. While we acknowledge the potential of WDC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than WDC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
