Western Digital (WDC) 8-K WD Announces Q3 Revenue of $1.4 Billion and Net Income of $.53 Per Share

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 Q3 REVENUE OF $1.4 BILLION AND
NET INCOME OF $.53 PER SHARE

LAKE FOREST, Calif. — Apr. 26, 2007 — Western Digital Corp. (NYSE: WDC) today reported revenue of $1.4 billion on shipments of approximately 24.5 million units, and net income of $121 million, or $.53 per share, for its third fiscal quarter ended Mar. 30, 2007. The third quarter results include a $13 million recovery related to a receivable previously deemed uncollectible.

     The March quarter results represented strong year-over-year performance, including growth in revenue and unit shipments of 25 percent and 30 percent, respectively. In the year-ago quarter, the company reported revenue of $1.1 billion, unit shipments of 18.8 million and net income of $102 million, or $.45 per share.

     Forty-seven percent of Q3 revenue was derived from newer market sources, while 53 percent came from hard drives configured into desktop PCs. This compares with a mix in the year-ago quarter of 29 percent newer markets versus 71 percent desktop PC revenue. The company’s newer market revenue includes hard drives for notebook PCs, consumer electronics, enterprise applications, and WD branded products.

WD Announces Q3 Revenue of $1.4 Billion and
Net Income of $.53 Per Share
Page 2

     The company shipped 3.7 million 2.5-inch mobile drives and 2.6 million 3.5-inch units for the PVR/DVR market, compared with 1.4 million and 1.7 million, respectively, a year ago. The branded products business was another strong factor in the diversification of the business, accounting for approximately $266 million in revenue. The company also grew unit shipments of its 3.5-inch enterprise-class drives, including the 10,000 RPM WD RaptorÒ and the 7,200 RPM WD RE.

     The company generated $164 million in cash from operations during the March quarter, ending with total cash and short-term investments of $875 million. It also paid off its remaining $19 million in bank debt and repurchased 1.5 million shares of common stock. Since May of 2004, the company has repurchased 11.7 million shares at a total cost of $143 million.

     “The industry saw seasonally softer demand and pricing in the March quarter and we were able to adjust to those challenges and post solid financial results, generate cash and grow in several of our newer markets,” said John Coyne, president and chief executive officer of WD. “We are pleased with our financial performance as it demonstrates our execution to the flexible WD business model and our ability to perform in a wide range of market environments.”

     The investment community conference call to discuss these results and the company’s outlook will be broadcast live over the Internet today at 2 p.m. PDT/5 p.m. EDT. 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: 866-439-3725 (toll-free) or +1-203-369-1044 (international)

WD Announces Q3 Revenue of $1.4 Billion and
Net Income of $.53 Per Share
Page 3

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 produces reliable, high-performance hard drives that keep users’ data close-at-hand and secure from loss. WD applies its storage expertise to consumer products for external, portable and shared storage products.

     WD was founded in 1970. The company’s storage products are marketed to leading 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.

     This press release contains a forward-looking statement regarding the company’s ability to perform in a wide range of market environments. This forward-looking statement is based on the company’s current expectations and is subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statement, including supply and demand conditions in the hard drive industry; actions by competitors; uncertainties related to the development and introduction of products based on new technologies and successful expansion into new hard drive markets; business conditions and growth in the notebook, consumer electronics, enterprise, branded products and desktop markets; pricing trends and fluctuations in average selling prices (ASPs); changes in the availability and cost of specialized product components; changes in product and customer mix; difficulties in reducing yield losses from complex manufacturing processes and new technologies; and other risks and uncertainties listed in the company’s recent Form 10-Q filed with the SEC on February 7, 2007, to which your attention is directed. Readers are cautioned not to place undue reliance on this forward-looking statement, which speaks only as of the date hereof, and the company undertakes no obligation to update this forward-looking statement to reflect subsequent events or circumstances.

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Western Digital, WD, the WD logo, and WD Raptor are registered trademarks of Western Digital Technologies, Inc.

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)

	Mar. 30,		Jun. 30,
	2007		2006
ASSETS
Current assets:
Cash and cash equivalents	$	704	$	551
Short-term investments		171		148
Accounts receivable, net		715		481
Inventories		243		205
Other		100		107
Total current assets		1,933		1,492
Property and equipment, net		672		549
Other assets, net		48		32
Total assets	$	2,653	$	2,073
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	851	$	632
Accrued expenses		125		131
Accrued warranty		74		71
Current portion of long-term debt		14		25
Total current liabilities		1,064		859
Long-term debt		13		19
Other liabilities		40		38
Total liabilities		1,117		916
Shareholders’ equity		1,536		1,157
Total liabilities and shareholders’ equity	$	2,653	$	2,073

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts)
(unaudited)

	Three Months Ended						Nine Months Ended
	Mar. 30,		Dec. 29,		Mar. 31,		Mar. 30,		Mar. 31,
	2007		2006		2006		2007		2006
Revenue, net	$	1,410	$	1,428	$	1,129	$	4,101	$	3,256
Cost of revenue		1,188		1,173		911		3,406		2,631
Gross margin		222		255		218		695		625
Operating expenses:
Research and development		75		77		79		227		226
Selling, general and administrative		32		56		39		132		127
Total operating expenses		107		133		118		359		353
Operating income		115		122		100		336		272
Net interest and other income		7		6		5		20		10
Income before income taxes		122		128		105		356		282
Income tax provision		1		—		3		4		7
Net income	$	121	$	128	$	102	$	352	$	275
Net income per common share:
Basic	$	.55	$	.58	$	.47	$	1.60	$	1.28
Diluted	$	.53	$	.57	$	.45	$	1.56	$	1.23
Common shares used in computing per share amounts:
Basic		220		220		217		219		214
Diluted		226		226		227		226		223

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

	Three Months Ended						Nine Months Ended
	Mar. 30,			Mar. 31,			Mar. 30,			Mar. 31,
	2007			20061			2007			20061
Cash flows from operating activities
Net income	$	121		$	102		$	352		$	275
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		55			42			149			116
Stock-based compensation		13			9			34			25
Deferred income taxes		2			—			3			—
Other non-cash items		—			(2	)		—			5
Changes in operating assets and liabilities		(27	)		(49	)		(74	)		(154	)
Net cash provided by operating activities		164			102			464			267
Cash flows from investing activities
Capital expenditures		(70	)		(87	)		(238	)		(198	)
Short-term investments, net		(16	)		(36	)		(23	)		(18	)
Net cash used in investing activities		(86	)		(123	)		(261	)		(216	)
Cash flows from financing activities
Issuance of common stock under employee plans		1			38			17			68
Repurchase of common stock		(29	)		(18	)		(29	)		(44	)
Repayment of long-term debt		(22	)		(6	)		(38	)		(17	)
Net cash (used in) provided by financing activities		(50	)		14			(50	)		7
Net increase (decrease) in cash and cash equivalents		28			(7	)		153			58
Cash and cash equivalents, beginning of period		676			550			551			485
Cash and cash equivalents, end of period	$	704		$	543		$	704		$	543

¹ Capital expenditures in the current period have been presented on a cash disbursements basis. The comparative amounts for capital expenditures and cash flows from operating activities have been reclassified to conform to the current period presentation.