EX-99.1 2 c23443exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
Company contacts:
Bob Blair
Investor Relations
949.672.7834
robert.blair@wdc.com
Steve Shattuck
Public Relations
949.672.7817
steve.shattuck@wdc.com
FOR IMMEDIATE RELEASE:
WD® ANNOUNCES Q1 REVENUE OF $2.7 BILLION AND
NET INCOME OF $239 MILLION, OR $1.01 PER SHARE
Company to Update Impact of Thailand Floods in Today’s Conference Call
IRVINE, Calif.—Oct. 19, 2011—Western Digital Corp. (NYSE: WDC) today reported revenue of $2.7 billion, hard-drive unit shipments of 58 million and net income of $239 million, or $1.01 per share, for its first fiscal quarter ended Sept. 30, 2011. The company’s results include expenses of $21 million associated with the planned acquisition of Hitachi Global Storage Technologies (Hitachi GST) announced Mar. 7, 2011 and unrelated litigation accruals. Excluding these expenses, non-GAAP net income was $260 million or $1.10 per share.1
In the year-ago quarter, the company reported revenue of $2.4 billion, net income of $197 million, or $0.84 per share, and shipped 51 million hard drives.
The company generated $352 million in cash from operations during the September quarter, ending with total cash and cash equivalents of $3.7 billion.
     
1   Non-GAAP net income for the first quarter of fiscal 2012 consists of GAAP net income of $239 million plus $21 million of 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.

 

 


 

WD Announces Q1 Revenue of $2.7 Billion and
Net Income of $239 Million, or $1.01 Per Share
Page 2
Conference Call
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. As previously reported, the company will also provide an update on the impact of the recent severe flooding in Thailand on its operations in the Bangkok region, along with its outlook for the December quarter. The live and archived conference call webcast can be accessed online at www.westerndigital.com/investor, click on “Conference Calls.” The telephone replay number is 800-568-4850 in the U.S. or +1-203-369-3813 for international callers.
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 home entertainment 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 website (www.westerndigital.com) to access a variety of financial and investor information.
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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)
                 
    Sept. 30,     Jul. 1,  
    2011     2011  
 
               
ASSETS
 
               
Current assets:
               
Cash and cash equivalents
  $ 3,675     $ 3,490  
Accounts receivable, net
    1,356       1,206  
Inventories
    645       577  
Other
    250       214  
 
           
Total current assets
    5,926       5,487  
Property, plant and equipment, net
    2,209       2,224  
Goodwill
    151       151  
Other intangible assets, net
    67       71  
Other assets
    114       185  
 
           
Total assets
  $ 8,467     $ 8,118  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
               
Current liabilities:
               
Accounts payable
  $ 1,708     $ 1,545  
Accrued expenses
    348       349  
Accrued warranty
    135       132  
Current portion of long-term debt
    163       144  
 
           
Total current liabilities
    2,354       2,170  
Long-term debt
    100       150  
Other liabilities
    290       310  
 
           
Total liabilities
    2,744       2,630  
Total shareholders’ equity
    5,723       5,488  
 
           
Total liabilities and shareholders’ equity
  $ 8,467     $ 8,118  
 
           

 

 


 

WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)
(unaudited)
                 
    Three Months Ended  
    Sept. 30,     Oct. 1,  
    2011     2010  
 
               
Revenue, net
  $ 2,694     $ 2,396  
Cost of revenue
    2,153       1,959  
 
           
Gross margin
    541       437  
 
           
Operating expenses:
               
Research and development
    193       167  
Selling, general and administrative
    89       59  
 
           
Total operating expenses
    282       226  
 
           
Operating income
    259       211  
Net interest and other
    (1 )      
 
           
Income before income taxes
    258       211  
Income tax provision
    19       14  
 
           
Net income
  $ 239     $ 197  
 
           
 
               
Income per common share:
               
Basic
  $ 1.03     $ 0.86  
 
           
Diluted
  $ 1.01     $ 0.84  
 
           
 
               
Weighted average shares outstanding:
               
Basic
    233       230  
 
           
Diluted
    237       234  
 
           

 

 


 

WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
                 
    Three Months Ended  
    Sept. 30,     Oct. 1  
    2011     2010  
 
               
Cash flows from operating activities
               
Net income
  $ 239     $ 197  
Adjustments to reconcile net income to net cash provided by operations:
               
Depreciation and amortization
    158       150  
Stock-based compensation
    17       19  
Deferred income taxes
    9        
Changes in operating assets and liabilities
    (71 )     24  
 
           
Net cash provided by operating activities
    352       390  
 
           
 
               
Cash flows from investing activities
               
Purchases of property, plant and equipment
    (134 )     (200 )
 
           
Cash used in investing activities
    (134 )     (200 )
 
           
 
               
Cash flows from financing activities
               
Employee stock plans, net
    (2 )     9  
Repurchases of common stock
          (50 )
Repayment of long-term debt
    (31 )     (25 )
 
           
Net cash used in financing activities
    (33 )     (66 )
 
           
Net increase in cash and cash equivalents
    185       124  
Cash and cash equivalents, beginning of period
    3,490       2,734  
 
           
Cash and cash equivalents, end of period
  $ 3,675     $ 2,858