Western Digital® Announces Q1 Revenue Of $4 Billion And Non-GAAP Net Income Of $594 Million, Or $2.36 Per Share(1)

IRVINE, Calif., Oct. 22, 2012 /PRNewswire/ -- Western Digital® Corp. (NASDAQ: WDC) today reported revenue of $4.0 billion, hard-drive shipments of 62.5 million and net income of $519 million, or $2.06 per share for its first fiscal quarter ended Sept. 28, 2012. On a non-GAAP basis, net income was $594 million or $2.36 per share.(1) In the year-ago quarter, the company reported revenue of $2.7 billion, net income of $239 million, or $1.01 per share, and shipped 57.8 million hard drives. Non-GAAP net income in the year-ago quarter was $260 million, or $1.10 per share.(2)

The company generated $936 million in cash from operations during the September quarter, ending with total cash and cash equivalents of $3.5 billion. During the quarter, the company utilized $218 million to buy back 5.2 million shares of common stock. On Sept.13, the company declared a $0.25 per common share dividend, which was paid Oct. 15.

"We are pleased to deliver another quarter of strong financial performance, continuing our track record of consistent execution," said John Coyne, chief executive officer. "While the macroeconomic environment is dampening near term demand, we remain confident in the continued long-term growth in the creation, storage and management of digital content. Western Digital has never been better positioned to address this opportunity, with great people, deep technology, a broad product portfolio and strong customer and supplier relationships."

The investment community conference call to discuss these results will be broadcast live over the Internet today at 2 p.m. Pacific/5 p.m. Eastern. The live and archived conference call webcast can be accessed online at investor.wdc.com. The telephone replay number is 866-395-1651 in the U.S. or +1-203-369-0471 for international callers.

About Western Digital

Western Digital Corp. (NASDAQ: WDC), Irvine, Calif., is a global provider of products and services that empower people to create, manage, experience and preserve digital content. Its subsidiaries design and manufacture storage devices, networking equipment and home entertainment products under the WD®, HGST and G-Technology™ brands. Visit the Investor section of the company's website (www.westerndigital.com) to access a variety of financial and investor information.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements concerning industry demand and the company's position in the industry. 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, including the impact of continued uncertainty and volatility in global economic conditions; supply and demand conditions in the hard drive industry; uncertainties concerning the availability and cost of commodity materials and specialized product components; actions by competitors; unexpected advances in competing technologies; uncertainties related to the development and introduction of products based on new technologies and expansion into new data storage markets; business conditions and growth in the various hard drive markets; pricing trends and fluctuations in average selling prices; and other risks and uncertainties listed in the company's filings with the Securities and Exchange Commission (the "SEC"), including the company's recent Form 10-K filed with the SEC on Aug. 20, 2012, to which your attention is directed. Readers are cautioned not to 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.

Western Digital, WD and the WD logo are registered trademarks in the U.S. and other countries. Other marks may be mentioned herein that belong to other companies. ___________________________

(1) Non-GAAP net income for the first quarter 2013 consists of GAAP net income of $519 million plus $49 million of amortization of intangibles related to the acquisition of HGST and $26 million related to employee termination benefits and other charges. Non-GAAP earnings per share of $2.36 for the first quarter is calculated by using the same 252 million diluted shares as is used for GAAP earnings per share. The tax effect of the employee termination benefits and other charges was not material.

(2) Non-GAAP net income for the first quarter of fiscal 2012 consists of GAAP net income of $239 million plus $21 million of HGST acquisition-related expenses and unrelated litigation accruals. Non-GAAP earnings per share of $1.10 for the first quarter is calculated by using the same 237 million diluted shares as is used for GAAP earnings per share. The tax effect of the acquisition-related expenses and unrelated litigation accruals was not material.



















 WESTERN DIGITAL CORPORATION 







CONDENSED CONSOLIDATED BALANCE SHEETS 







(in millions; unaudited)










Sept. 28,


Jun. 29,




2012


2012







ASSETS







Current assets:





Cash and cash equivalents

$     3,537


$     3,208


Accounts receivable, net

1,951


2,364


Inventories

1,304


1,210


Other

394


359



Total current assets

7,186


7,141

Property, plant and equipment, net

4,027


4,067

Goodwill 

1,944


1,975

Other intangible assets, net

746


799

Other assets

269


224



Total assets

$   14,172


$   14,206













LIABILITIES AND SHAREHOLDERS' EQUITY







Current liabilities:





Accounts payable

$     2,545


$     2,773


Accrued expenses

774


858


Accrued warranty

146


171


Current portion of long-term debt

230


230



Total current liabilities

3,695


4,032

Long-term debt

1,898


1,955

Other liabilities

542


550



Total liabilities

6,135


6,537

Total shareholders' equity

8,037


7,669



Total liabilities and shareholders' equity

$   14,172


$   14,206




























     WESTERN DIGITAL CORPORATION









CONDENSED CONSOLIDATED STATEMENTS OF INCOME 









     (in millions, except per share amounts)


     (unaudited)



















Three Months Ended





 Sept. 28, 


 Sept. 30, 





2012


2011









Revenue, net

$     4,035


$     2,694


Cost of revenue

2,842


2,153



Gross margin

1,193


541


Operating expenses:






Research and development

396


193



Selling, general and administrative

179


89



Employee termination benefits and other charges

26


 ― 




Total operating expenses

601


282


Operating income 

592


259



Net interest and other

(14)


(1)


Income before income taxes

578


258



Income tax provision

59


19


Net income 

$        519


$        239









Income per common share:






Basic

$       2.11


$       1.03



Diluted

$       2.06


$       1.01









Weighted average shares outstanding:






Basic

246


233



Diluted

252


237






























     WESTERN DIGITAL CORPORATION








CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS








     (in millions; unaudited)


















Three Months Ended





 Sept. 28, 


 Sept. 30, 





2012


2011









Cash flows from operating activities





Net income 

$        519


$        239


Adjustments to reconcile net income to net cash 





  provided by operations:






Depreciation and amortization

313


158



Stock-based compensation

39


17



Deferred income taxes

(12)


9



Changes in operating assets and liabilities, net

77


(71)




Net cash provided by operating activities

936


352









Cash flows from investing activities





Purchases of property, plant and equipment

(382)


(134)


Acquisition

(9)


 ― 




Cash used in investing activities

(391)


(134)









Cash flows from financing activities





Employee stock plans, net

60


(2)


Repurchases of common stock

(218)


 ― 


Repayment of debt

(58)


(31)




Net cash used in financing activities 

(216)


(33)


Net increase in cash and cash equivalents

329


185


Cash and cash equivalents, beginning of period

3,208


3,490


Cash and cash equivalents, end of period

$     3,537


$     3,675









(Logo:  http://photos.prnewswire.com/prnh/20000711/WDCLOGO)

SOURCE Western Digital Corp.



RELATED LINKS
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