Investing.com – Western Digital Stock fell 10% on Friday as NASDAQ (NASDAQ: ) received a disappointing quarter outlook from the storage system and hard drive manufacturer.

At the most optimistic level, Western Digital estimates its gross margin to remain around the first quarter’s level of 34%. Gross margins could also slip to 32%, according to the company’s forecast as it tries to overcome supply chain issues .

At midpoint, the company projected December’s revenue at $4.8 Billion. That would be 23 percent more than in last year’s third quarter but less than that of September. At midpoint, the adjusted profit per share stands at $2.10.

Revenue rose 29% to $5.1 million in the first quarter. Cloud revenue was a huge success, accounting for 72% of total revenue. Consumer revenue rose by 10% and client revenue grew by 6%.

In the client business, the flash business unit experienced growth – specifically in mobile, gaming, automotive, IOT and industrial applications, the company said.

The company’s notebook and desktop hard drive business was most affected by supply chain disruptions. Supplies were disrupted at its customers’ and also within the company’s own operations.

The company stated that revenue from flash and hard drives units within the consumer business fell sequentially because of supply disruptions. They also pointed out uneven geographic demand as a result of Covid lockdowns.

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