Western Digital® Announces Q2 Revenue Of $3.8 Billion And Non-GAAP Net Income Of $513 Million, Or $2.09 Per Share(1)

Jan 23, 2013, 16:15 ET from Western Digital Corp.

IRVINE, Calif., Jan. 23, 2013 /PRNewswire-FirstCall/ -- Western Digital® Corp. (NASDAQ: WDC) today reported revenue of $3.8 billion, hard-drive shipments of 59.2 million and net income of $335 million, or $1.36 per share for its second fiscal quarter ended Dec. 28, 2012. On a non-GAAP basis, net income was $513 million or $2.09 per share.1 In the year-ago quarter, the company reported revenue of $2.0 billion, net income of $145 million, or $0.61 per share, and shipped 28.5 million hard drives. Non-GAAP net income in the year-ago quarter was $358 million, or $1.51 per share.2

The company generated $772 million in cash from operations during the December quarter, ending with total cash and cash equivalents of $3.8 billion. During the quarter, the company utilized $146 million to buy back 4.2 million shares of common stock. On Dec. 3, the company declared a $0.25 per common share dividend, which was paid on Dec. 26.

"We are pleased with our December quarter results, reflecting outstanding execution and value creation by our HGST and WD® teams," said Steve Milligan, president and chief executive officer. "In an environment marked by continued macroeconomic uncertainty, soft PC demand and inventory rebalancing by our customers, we continue to manage our business by focusing on those variables that we control, allowing us to generate better than expected revenue and profitability and strong cash generation."

The investment community conference call to discuss these results will be broadcast live over the Internet today at 3 p.m. Pacific/6 p.m. Eastern. The live and archived conference call webcast can be accessed online at investor.wdc.com. The telephone replay number is 888-568-0860 in the U.S. or +1-402-998-0245 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 the company's revenue, profitability and cash generation. 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-Q filed with the SEC on Nov. 2, 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.

___________________________ 1Non-GAAP net income for the second quarter fiscal 2013 consists of GAAP net income of $335 million plus $88 million for a tax-related matter, $49 million of amortization of intangibles related to the acquisition of HGST and $41 million related to employee termination benefits and other charges. Non-GAAP earnings per share of $2.09 for the second quarter is calculated by using the same 246 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.

2Non-GAAP net income for the second quarter fiscal 2012 consists of GAAP net income of $145 million plus $199 million for charges and expenses related to the flooding and $14 million of acquisition-related expenses. Non-GAAP earnings per share of $1.51 for the second quarter is calculated by using the same 237 million diluted shares as is used for GAAP earnings per share.

 

 

 

 WESTERN DIGITAL CORPORATION 

CONDENSED CONSOLIDATED BALANCE SHEETS 

(in millions; unaudited)

Dec. 28,

Jun. 29,

2012

2012

ASSETS

Current assets:

Cash and cash equivalents

$   3,816

$   3,208

Accounts receivable, net

1,732

2,364

Inventories

1,204

1,210

Other

423

359

Total current assets

7,175

7,141

Property, plant and equipment, net

3,938

4,067

Goodwill 

1,907

1,975

Other intangible assets, net

709

799

Other assets

200

224

Total assets

$ 13,929

$ 14,206

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$   2,185

$   2,773

Accrued expenses

722

858

Accrued warranty

131

171

Current portion of long-term debt

288

230

Total current liabilities

3,326

4,032

Long-term debt

1,840

1,955

Other liabilities

516

550

Total liabilities

5,682

6,537

Total shareholders' equity

8,247

7,669

Total liabilities and shareholders' equity

$ 13,929

$ 14,206

 

 

     WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME 

     (in millions, except per share amounts)

     (unaudited)

Three Months Ended

Six Months Ended

 Dec. 28, 

 Dec. 30, 

 Dec. 28, 

 Dec. 30, 

2012

2011

2012

2011

Revenue, net

$   3,824

$   1,995

$   7,859

$   4,689

Cost of revenue

2,765

1,347

5,607

3,500

Gross profit

1,059

648

2,252

1,189

Operating expenses:

Research and development

378

191

774

384

Selling, general and administrative

162

96

341

185

Employee termination benefits and other charges

41

 ― 

67

 ― 

Charges related to flooding

 ― 

199

 ― 

199

Total operating expenses

581

486

1,182

768

Operating income 

478

162

1,070

421

Net interest and other

(10)

(2)

(24)

(3)

Income before income taxes

468

160

1,046

418

Income tax provision

133

15

192

34

Net income 

$       335

$       145

$       854

$       384

Income per common share:

Basic

$      1.38

$      0.62

$      3.50

$      1.64

Diluted

$      1.36

$      0.61

$      3.43

$      1.62

Weighted average shares outstanding:

Basic

242

234

244

234

Diluted

246

237

249

237

 

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

Three Months Ended

Six Months Ended

Dec. 28,

Dec. 30,

Dec. 28,

Dec. 30,

2012

2011

2012

2011

Cash flows from operating activities

Net income

$ 335

$ 145

$ 854

$ 384

Adjustments to reconcile net income to net cash provided by operations:

Depreciation and amortization

309

140

622

298

Stock-based compensation

32

24

71

41

Deferred income taxes

80

9

68

18

Non-cash portion of employee termination benefits and other charges

15

15

Non-cash portion of charges related to flooding

109

109

Changes in operating assets and liabilities, net

1

(49)

78

(120)

Net cash provided by operating activities

772

378

1,708

730

Cash flows from investing activities

Purchases of property, plant and equipment

(246)

(120)

(628)

(253)

Acquisitions, net of cash acquired

(18)

(27)

Purchase of investment

(15)

(15)

Net cash used in investing activities

(279)

(120)

(670)

(253)

Cash flows from financing activities

Employee stock plans, net

53

22

113

20

Repurchases of common stock

(146)

(364)

Dividends to shareholders

(121)

(121)

Repayment of debt

(31)

(58)

(63)

Net cash used in financing activities

(214)

(9)

(430)

(43)

Net increase in cash and cash equivalents

279

249

608

434

Cash and cash equivalents, beginning of period

3,537

3,675

3,208

3,490

Cash and cash equivalents, end of period

$ 3,816

$ 3,924

$ 3,816

$ 3,924

 

 

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

SOURCE Western Digital Corp.



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http://www.westerndigital.com