WD(R) Announces Fiscal Q2 Revenue of $2.6 Billion With Net Income of $429 Million, or $1.85 per Share
Revenue Up 44 Percent, Hard Drive Shipments Up 39 Percent, From Year-ago Quarter
LAKE FOREST, Calif., Jan. 21 /PRNewswire-FirstCall/ -- Western Digital Corp. (NYSE: WDC) today reported revenue of $2.6 billion, hard drive shipments of 49.5 million units and net income of $429 million, or $1.85 per share, for its second fiscal quarter ended Jan. 1, 2010. In the year-ago quarter, the company reported revenue of $1.8 billion, hard drive shipments of 35.5 million units, and net income of $14 million. The year-ago net income included $113 million of restructuring charges.
The company generated a record $557 million in cash from operations during the second quarter, ending with total cash and cash equivalents of $2.4 billion.
“We are very pleased with WD’s strong financial performance in our second fiscal quarter,” said John Coyne, president and chief executive officer. “For the third consecutive quarter, we increased output in a supply constrained environment, providing strong support of our customers’ growth opportunities, primarily in the consumer segment but, notably, with some emerging strength in the commercial sector. Continued customer preference for WD products, our timely investments in capital, the support of our supply partners and outstanding execution by the WD team generated record revenue and profits. A moderate pricing environment, combined with our passionate focus on cost and efficiency, enabled gross margins of 26.2 percent -- well above the high end of our model range.”
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 call will be accessible live and on an archived basis via the link below:
Audio Webcast: |
www.westerndigital.com/investor |
|
Click on “Conference Calls” |
||
Telephone Replay: |
800-925-0904 (toll-free) |
|
+1-203-369-3093 (international) |
||
About WD
WD, one of the storage industry's pioneers and long-time leaders, provides products and services for people and organizations that collect, manage and use digital information. The company designs and produces reliable, high-performance hard drives and solid state drives that keep users' data accessible and secure from loss. Its advanced technologies are configured into applications for client and enterprise computing, embedded systems and consumer electronics, as well as its own consumer storage and media products.
WD was founded in 1970. The company's storage products are marketed to leading OEMs, systems manufacturers, selected resellers and retailers under the Western Digital® and WD brand names. Visit the Investor section of the company's Web site (www.westerndigital.com) to access a variety of financial and investor information.
Western Digital, WD, and the WD logo are registered trademarks of Western Digital Technologies, Inc. All other trademarks mentioned herein belong to their respective owners.
WESTERN DIGITAL CORPORATION |
|||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(in millions; unaudited) |
|||
Jan. 1, |
Jul. 3, |
||
2010 |
2009 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$2,435 |
$1,794 |
|
Accounts receivable, net |
1,365 |
926 |
|
Inventories |
453 |
376 |
|
Other |
163 |
134 |
|
Total current assets |
4,416 |
3,230 |
|
Property and equipment, net |
1,696 |
1,584 |
|
Goodwill |
139 |
139 |
|
Other intangible assets, net |
83 |
89 |
|
Other assets |
251 |
249 |
|
Total assets |
$6,585 |
$5,291 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$1,507 |
$1,101 |
|
Accrued expenses |
288 |
247 |
|
Accrued warranty |
118 |
95 |
|
Current portion of long-term debt |
94 |
82 |
|
Total current liabilities |
2,007 |
1,525 |
|
Long-term debt |
350 |
400 |
|
Other liabilities |
237 |
174 |
|
Total liabilities |
2,594 |
2,099 |
|
Shareholders' equity |
3,991 |
3,192 |
|
Total liabilities and shareholders' equity |
$6,585 |
$5,291 |
|
WESTERN DIGITAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share amounts) (unaudited) |
|||||
Three Months Ended |
Six Months Ended |
||||
Jan. 1, |
Dec. 26, |
Jan. 1, |
Dec. 26, |
||
Revenue, net |
$2,619 |
$1,823 |
$4,827 |
$3,933 |
|
Cost of revenue |
1,932 |
1,533 |
3,626 |
3,219 |
|
Gross margin |
687 |
290 |
1,201 |
714 |
|
Operating expenses: |
|||||
Research and development |
154 |
119 |
296 |
252 |
|
Selling, general and administrative |
60 |
42 |
113 |
99 |
|
Restructuring |
— |
113 |
— |
113 |
|
Total operating expenses |
214 |
274 |
409 |
464 |
|
Operating income |
473 |
16 |
792 |
250 |
|
Net interest and other |
(2) |
(9) |
(4) |
(13) |
|
Income before income taxes |
471 |
7 |
788 |
237 |
|
Income tax provision (benefit) |
42 |
(7) |
71 |
12 |
|
Net income |
$429 |
$14 |
$717 |
$225 |
|
Income per common share: |
|||||
Basic |
$1.89 |
$0.06 |
$3.17 |
$1.01 |
|
Diluted |
$1.85 |
$0.06 |
$3.10 |
$1.00 |
|
Common shares used in computing per share amounts: |
|||||
Basic |
227 |
222 |
226 |
222 |
|
Diluted |
232 |
224 |
231 |
225 |
|
WESTERN DIGITAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in millions; unaudited) |
|||||
Three Months Ended |
Six Months Ended |
||||
Jan. 1, 2010 |
Dec. 26, 2008 |
Jan. 1, 2010 |
Dec. 26, 2008 |
||
Cash flows from operating activities |
|||||
Net income |
$429 |
$14 |
$717 |
$225 |
|
Adjustments to reconcile net income to net cash provided by operations: |
|||||
Depreciation and amortization |
126 |
122 |
247 |
239 |
|
Stock-based compensation |
13 |
11 |
27 |
21 |
|
Deferred income taxes |
(5) |
(7) |
(5) |
(7) |
|
Loss on investments |
— |
6 |
— |
9 |
|
Non-cash portion of restructuring |
— |
80 |
— |
80 |
|
Changes in operating assets and liabilities |
(6) |
74 |
5 |
34 |
|
Net cash provided by operating activities |
557 |
300 |
991 |
601 |
|
Cash flows from investing activities |
|||||
Purchases of property and equipment |
(199) |
(140) |
(375) |
(302) |
|
Sales and maturities of investments |
3 |
— |
3 |
1 |
|
Net cash used in investing activities |
(196) |
(140) |
(372) |
(301) |
|
Cash flows from financing activities |
|||||
Issuance of stock under employee stock plans, net |
26 |
10 |
40 |
9 |
|
Increase (decrease) in excess tax benefits from employee stock plans |
11 |
(4) |
20 |
4 |
|
Repurchases of common stock |
— |
— |
— |
(36) |
|
Repayment of long-term debt |
(19) |
(3) |
(38) |
(5) |
|
Net cash provided by (used in) financing activities |
18 |
3 |
22 |
(28) |
|
Net increase in cash and cash equivalents |
379 |
163 |
641 |
272 |
|
Cash and cash equivalents, beginning of period |
2,056 |
1,213 |
1,794 |
1,104 |
|
Cash and cash equivalents, end of period |
$2,435 |
$1,376 |
$2,435 |
$1,376 |
|
(Logo: http://www.newscom.com/cgi-bin/prnh/20000711/WDCLOGO)
SOURCE Western Digital Corp.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article