Western Digital's shares  plummeted 10% on Friday after the hard drive and storage system maker presented a current quarter outlook that fell short of analysts' expectations.

Western Digital expects its gross margin to maintain around 34% in the second quarter, at the most optimistic level. According to the company's prediction, gross margins could fall to 32% as it works to resolve supply chain concerns.

The business expects revenue in the December quarter to be $4.8 billion at the midpoint, up 23 % from last year's quarter but down from the September quarter. At the midpoint, adjusted profit per share is expected to be $2.10.

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Revenue increased by 29% to $5.1 billion in the first quarter. Cloud revenue increased by 72 %, accounting for 44 % of overall revenue. Client revenue increased by 6%, while consumer revenue jumped by 10%.

The flash business unit saw growth in the client business, particularly in mobile, gaming, automotive, IoT, and industrial applications, according to the company.

The company's desktop and laptop hard drive business was hit the most by supply chain interruptions that have afflicted almost every manufacturer, regardless of industry. Customers' supplies were disrupted, as well as the company's own operations.

According to the company, revenue from both the flash and hard drive units in the consumer sector dropped sequentially owing to supply problems, as well as uneven geographic demand due to Covid lockdowns.

The adjusted profit per share was $2.49, compared to a loss the previous time.