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 FISCAL Q3 REVENUE OF $2.6 BILLION WITH
NET INCOME OF $400 MILLION, OR $1.71 PER SHARE
NET INCOME OF $400 MILLION, OR $1.71 PER SHARE
Revenue Up 66 Percent, Hard Drive Shipments Up 62 Percent,
From Year-ago Quarter
LAKE FOREST, Calif. — Apr. 22, 2010 — Western Digital Corp. (NYSE: WDC) today reported revenue of $2.6 billion, hard drive shipments of 51.1 million units and net income of $400 million, or $1.71 per share, for its third fiscal quarter ended Apr. 2, 2010. In the year-ago quarter, the company reported revenue of $1.6 billion, hard drive shipments of 31.6 million units, and net income of $50 million, or $0.22 per share.
The company generated $588 million in cash from operations during the third quarter, ending with total cash and cash equivalents of $2.8 billion.
John Coyne, president and chief executive officer said: “With market demand stronger than anticipated in the March quarter, our large-scale vertical integration, agile business model and product breadth allowed us to respond to this upside opportunity and again grow our share of the overall hard drive market.
WD Announces Fiscal Q3 Revenue of $2.6 Billion With
Net Income of $400 Million, or $1.71 Per Share
Page 2
Net Income of $400 Million, or $1.71 Per Share
Page 2
“We believe that 2010 will continue to be a strong year for digital storage,” said Coyne. “We will maintain our focus on facilitating our customers’ growth and making them successful while at the same time achieving sustained profitability for WD.”
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: | 800-879-3693 (toll-free) | |
| +1-402-220-4717 (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 website (www.westerndigital.com) to access a variety of financial and investor information.
WD Announces Fiscal Q3 Revenue of $2.6 Billion With
Net Income of $400 Million, or $1.71 Per Share
Page 3
Net Income of $400 Million, or $1.71 Per Share
Page 3
This press release contains forward-looking statements concerning demand for digital storage in 2010, growth by WD’s customers and WD’s profitability. The foregoing forward-looking statements are based on WD’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including: the impact of recent uncertainty and volatility in global economic conditions; supply and demand conditions in the hard drive industry; 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; changes in the availability and cost of commodity materials and specialized product components that WD does not make internally; and other risks and uncertainties listed in WD’s recent Form 10-Q filed with the SEC on Jan. 29, 2010, 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 WD 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 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)
| Apr. 2, | Jul. 3, | |||||||
| 2010 | 2009 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,826 | $ | 1,794 | ||||
| Accounts receivable, net | 1,257 | 926 | ||||||
| Inventories | 507 | 376 | ||||||
| Other | 188 | 134 | ||||||
| Total current assets | 4,778 | 3,230 | ||||||
| Property and equipment, net | 1,756 | 1,584 | ||||||
| Goodwill | 139 | 139 | ||||||
| Other intangible assets, net | 80 | 89 | ||||||
| Other assets | 247 | 249 | ||||||
| Total assets | $ | 7,000 | $ | 5,291 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,508 | $ | 1,101 | ||||
| Accrued expenses | 225 | 247 | ||||||
| Accrued warranty | 124 | 95 | ||||||
| Current portion of long-term debt | 100 | 82 | ||||||
| Total current liabilities | 1,957 | 1,525 | ||||||
| Long-term debt | 325 | 400 | ||||||
| Other liabilities | 287 | 174 | ||||||
| Total liabilities | 2,569 | 2,099 | ||||||
| Shareholders’ equity | 4,431 | 3,192 | ||||||
| Total liabilities and shareholders’ equity | $ | 7,000 | $ | 5,291 | ||||
WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)
(unaudited)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| Apr. 2, | Mar. 27, | Apr. 2, | Mar. 27, | |||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenue, net | $ | 2,641 | $ | 1,592 | $ | 7,468 | $ | 5,524 | ||||||||
| Cost of revenue | 1,976 | 1,339 | 5,602 | 4,557 | ||||||||||||
| Gross margin | 665 | 253 | 1,866 | 967 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 160 | 125 | 456 | 377 | ||||||||||||
| Selling, general and administrative | 64 | 49 | 177 | 149 | ||||||||||||
| Acquired in-process research and development | — | 14 | — | 14 | ||||||||||||
| Restructuring | — | 4 | — | 117 | ||||||||||||
| Total operating expenses | 224 | 192 | 633 | 657 | ||||||||||||
| Operating income | 441 | 61 | 1,233 | 310 | ||||||||||||
| Net interest and other | (1 | ) | (3 | ) | (5 | ) | (16 | ) | ||||||||
| Income before income taxes | 440 | 58 | 1,228 | 294 | ||||||||||||
| Income tax provision | 40 | 8 | 110 | 20 | ||||||||||||
| Net income | $ | 400 | $ | 50 | $ | 1,118 | $ | 274 | ||||||||
| Income per common share: | ||||||||||||||||
| Basic | $ | 1.75 | $ | 0.22 | $ | 4.93 | $ | 1.23 | ||||||||
| Diluted | $ | 1.71 | $ | 0.22 | $ | 4.82 | $ | 1.22 | ||||||||
| Common shares used in computing per share amounts: | ||||||||||||||||
| Basic | 229 | 223 | 227 | 222 | ||||||||||||
| Diluted | 234 | 226 | 232 | 225 | ||||||||||||
WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| Apr. 2, | Mar. 27, | Apr. 2, | Mar. 27, | |||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Cash flows from operating activities | ||||||||||||||||
| Net income | $ | 400 | $ | 50 | $ | 1,118 | $ | 274 | ||||||||
| Adjustments to reconcile net income to net cash provided by operations: | ||||||||||||||||
| Depreciation and amortization | 128 | 119 | 376 | 358 | ||||||||||||
| Stock-based compensation | 16 | 12 | 43 | 33 | ||||||||||||
| Deferred income taxes | 4 | — | (2 | ) | (7 | ) | ||||||||||
| Loss on investments | — | 1 | — | 10 | ||||||||||||
| Non-cash portion of restructuring | — | 1 | — | 81 | ||||||||||||
| Acquired in-process research and development | — | 14 | — | 14 | ||||||||||||
| Changes in operating assets and liabilities | 40 | 158 | 44 | 193 | ||||||||||||
| Net cash provided by operating activities | 588 | 355 | 1,579 | 956 | ||||||||||||
Cash flows from investing activities | ||||||||||||||||
| Acquisitions, net of cash acquired | — | (44 | ) | — | (44 | ) | ||||||||||
| Purchases of property and equipment | (177 | ) | (106 | ) | (552 | ) | (408 | ) | ||||||||
| Sales and maturities of investments | 1 | — | 4 | 1 | ||||||||||||
| Net cash used in investing activities | (176 | ) | (150 | ) | (548 | ) | (451 | ) | ||||||||
Cash flows from financing activities | ||||||||||||||||
| Issuance of stock under employee stock plans, net | (2 | ) | (1 | ) | 38 | 8 | ||||||||||
| Excess tax benefits from employee stock plans | — | 1 | 20 | 5 | ||||||||||||
| Repurchases of common stock | — | — | — | (36 | ) | |||||||||||
| Repayment of long-term debt | (19 | ) | (2 | ) | (57 | ) | (7 | ) | ||||||||
| Net cash provided by (used in) financing activities | (21 | ) | (2 | ) | 1 | (30 | ) | |||||||||
| Net increase in cash and cash equivalents | 391 | 203 | 1,032 | 475 | ||||||||||||
| Cash and cash equivalents, beginning of period | 2,435 | 1,376 | 1,794 | 1,104 | ||||||||||||
| Cash and cash equivalents, end of period | $ | 2,826 | $ | 1,579 | $ | 2,826 | $ | 1,579 | ||||||||