Western Digital (WDC) 8-K WD Announces Q1 Revenue of $1.8 Billion and Gaap Net Income of $69 Million, or $.31 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 Q1 REVENUE OF $1.8 BILLION AND
GAAP NET INCOME OF $69 MILLION, OR $.31 PER SHARE

Non-GAAP Net Income of $182 Million, or $.81 Per Share;
HDD Revenue Grows 37 Percent, Units 29 Percent Year-Over-Year

     LAKE FOREST, Calif. — Nov. 1, 2007 — Western Digital Corp. (NYSE: WDC) today reported revenue of $1.766 billion, comprised of $1.726 billion of hard drive revenue and $40 million revenue from media and substrate sales. Hard drive revenue grew by 37 percent over the prior-year comparative period on shipments of 29.4 million units, an increase of 29 percent in unit volume.

     GAAP net income for the quarter was $69 million, or $.31 per share. This includes net non-recurring tax charges of $60 million related to WD’s ongoing hard drive operations and the results of the company’s newly acquired media operations from Sept. 5 through Sept. 28, 2007, including acquisition-related, in-process research and development charges of $49 million.

     Excluding the non-recurring tax charges, non-GAAP consolidated net income was $129 million, or $.58 per share. Excluding the tax charges and the impact of the Komag acquisition, non-GAAP HDD revenue was $1.726 billion, unit shipments were 29.4 million and non-GAAP HDD net income was $182 million, or $.81 per share. A year ago, the company reported first quarter

WD Announces Q1 Revenue of $1.8 Billion and
GAAP Net Income of $69 Million, or $.31 Per Share
Page 2

revenue of $1.264 billion, unit shipments of 22.7 million, and net income of $103 million, or $.46 per share.

     In Q1, while achieving strong quarter-over-quarter growth in the high-volume desktop market, the company for the first time derived more than half its quarterly hard drive revenue from non-desktop PC applications. Fifty-three percent of hard drive revenue was from these applications, including notebook PCs, consumer electronics, enterprise applications and branded product retail sales. This compares with a mix in the year-ago quarter of 35 percent non-desktop PC revenue.

     The company’s unit shipments for the first quarter included approximately 5.9 million 2.5-inch hard drives for mobile applications and approximately 3.7 million 3.5-inch hard drives for use in digital video recorders. Branded products accounted for 18 percent of Q1 revenue, continuing to demonstrate the value of WD’s global brand leadership.

     The company generated $219 million in cash from operations during the September quarter, ending with total cash and short-term investments of $851 million. The company borrowed $750 million on its $1.25 billion bridge financing facility to help fund the Komag acquisition.

     “Our first quarter results reflect the WD team’s strong execution in a strong market for hard drives across all applications, regions and channels,” said John Coyne, WD’s president and chief executive officer. “We continue to reap the benefits of our investments and deployment of leading technologies over the last several years, enabling us to address customer demand for mainstream and higher capacity hard drives in consumer and commercial applications.”

WD Announces Q1 Revenue of $1.8 Billion and
GAAP Net Income of $69 Million, or $.31 Per Share
Page 3

     Specifically, Coyne noted growing shipments of the company’s 250 GB WD Scorpio^Ò 2.5-inch and high capacity 3.5-inch hard drives—all based on newer technologies including the company’s PMR (perpendicular magnetic recording) heads.

     The investment community conference call to discuss these results and the company’s outlook will be broadcast live over the Internet today at 2:30 p.m. PDT/5:30 p.m. EDT. The call will be accessible live and on an archived basis via the link below:

Audio Webcast:

Telephone Replay: www.westerndigital.com/investor
Click on “Conference Calls”
866-511-5156 (toll-free)
+1-203-369-1956 (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 produces reliable, high-performance hard drives that keep users’ data accessible 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 presents revenue, net income and earnings per share on a GAAP and a non-GAAP basis. The non-GAAP financial measures are reconciled to the corresponding GAAP measures in the financial tables included at the end of this press release.

     This press release contains the company’s unaudited financial results for its first quarter, which are based, in part, on estimates made during the preliminary purchase price allocation of the assets acquired and liabilities assumed through the Komag acquisition. These results may change as additional information becomes available or as a result of continuing review by the company’s independent auditors and management. Changes, if any, would be made no later than the date of filing of the Company’s Form 10-K for fiscal 2008. This press release also contains forward-looking statements concerning the strong market for hard drives, WD’s belief that its investment and deployment of leading technologies will enable

WD Announces Q1 Revenue of $1.8 Billion and
GAAP Net Income of $69 Million, or $.31 Per Share
Page 4

it to address growing customer demand for mainstream and higher capacity hard drives and the growing shipments of WD’s 250 GB WD Scorpio 2.5-inch and high capacity 3.5-inch hard drives. These 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 risk that WD’s business will suffer during the integration of WD’s recently acquired media operations; failure to quickly and effectively integrate WD’s recently acquired media technology with WD’s head technology; uncertainties regarding managing relationships with WD’s external media suppliers, media component suppliers, and external media customers; supply and demand conditions in the hard drive industry; actions by competitors; unexpected advances in competing technologies such as flash memory; 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 mobile PC, consumer electronics, enterprise, external hard drive and desktop markets; pricing trends and fluctuations in average selling prices; changes in the availability and cost of specialized product components that WD does not make internally and commodity materials; and other risks and uncertainties listed in WD’s recent Form 10-K filed with the SEC Aug. 28, 2007, 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, the WD logo and WD Scorpio are registered trademarks of Western Digital Technologies, Inc.

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)

	Sept. 28,		Jun. 29,
	2007		2007
ASSETS
Current assets:
Cash and cash equivalents	$	651	$	700
Short-term investments		200		207
Accounts receivable, net		985		697
Inventories		461		259
Other		150		166
Total current assets		2,447		2,029
Property and equipment, net		1,516		741
Goodwill and other intangible assets, net		187		4
Other assets, net		224		127
Total assets	$	4,374	$	2,901
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,106	$	882
Customer advances		59		—
Accrued expenses		211		163
Accrued warranty		76		73
Short-term debt		999		—
Current portion of long-term debt		12		12
Total current liabilities		2,463		1,130
Long-term debt		7		10
Other liabilities		117		45
Total liabilities		2,587		1,185
Shareholders’ equity		1,787		1,716
Total liabilities and shareholders’ equity	$	4,374	$	2,901

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

	Three Months Ended
	Sept. 28,		Jun. 29,			Sept. 29,
	2007		2007			2006
Revenue, net	$	1,766	$	1,367		$	1,264
Cost of revenue		1,443		1,162			1,046
Gross margin		323		205			218
Operating expenses
Research and development		91		79			75
Selling, general and administrative		48		47			44
Acquired in-process research and development		49		—			—
Total operating expenses		188		126			119
Operating income		135		79			99
Net interest and other income		3		7			7
Income before income taxes		138		86			106
Income tax provision (benefit)		69		(126	)		3
Net income	$	69	$	212		$	103
Net income per common share:
Basic	$	.31	$	.97		$	.47
Diluted	$	.31	$	.94		$	.46
Common shares used in computing per share amounts:
Basic		219		219			219
Diluted		224		225			225

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

	Three Months Ended
	Sept. 28,			Jun. 29,			Sept. 29,
	2007			2007			20061
Cash flows from operating activities
Net income	$	69		$	212		$	103
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		78			61			45
In-process research and development		49			—			—
Deferred income taxes		60			(129	)		—
Stock-based compensation		8			14			9
Changes in operating assets and liabilities		(45	)		(4	)		(42	)
Net cash provided by operating activities		219			154			115
Cash flows from investing activities
Acquisitions, net of cash acquired		(911	)		—			—
Capital expenditures, net		(163	)		(86	)		(59	)
Short-term investments, net		65			(36	)		—
Net cash used in investing activities		(1,009	)		(122	)		(59	)
Cash flows from financing activities
Net proceeds from acquisition financing		750			—			—
Issuance of common stock under employee plans		10			13			2
Repurchase of common stock		(16	)		(44	)		—
Repayment of long-term debt		(3	)		(5	)		(6	)
Net cash provided by (used in) financing activities		741			(36	)		(4	)
Net (decrease) increase in cash and cash equivalents		(49	)		(4	)		52
Cash and cash equivalents, beginning of period		700			704			551
Cash and cash equivalents, end of period	$	651		$	700		$	603

¹ Certain reclassifications have been made to previously reported amounts to conform to the current period presentation.

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

Reconciliation of Non-GAAP to GAAP Information
(in millions, except per share amounts)
(unaudited)

			Media
	Non-GAAP2		09/05/07 -			IPR&D				Non-GAAP		Tax
	WD HDD		09/28/07			Charges			Notes	Consol.		Charges			GAAP
Revenue, net	$	1,726	$	40		$	—			$	1,766	$	—		$	1,766
Cost of revenue		1,409		34			—				1,443		—			1,443
Gross margin		317		6			—		A		323		—			323
Operating expenses
Research and development		85		6			—				91		—			91
Selling, general and administrative		47		1			—				48		—			48
Acquired in-process research and development		—		—			49		B		49		—			49
Total operating expenses		132		7			49				188		—			188
Operating income		185		(1	)		(49	)			135		—			135
Net interest and other income		8		(5	)		—		C		3		—			3
Income before income taxes		193		(6	)		(49	)			138		—			138
Income tax provision (benefit)		11		(2	)		—		D		9		60			69
Net income	$	182	$	(4	)	$	(49	)		$	129	$	(60	)	$	69
Net income per common share:
Basic	$	.83								$	.59				$	.31
Diluted	$	.81								$	.58				$	.31
Common shares used in computing per share amounts:
Basic		219									219					219
Diluted		224									224					224

Footnotes

A.	Media operations gross margin includes profit from external sales combined with the benefit from internally produced media for the period from September 5 through September 28, 2007, offset by incremental depreciation and amortization resulting from the acquired assets.
B.	Acquisition related research and development expenses of $49 million is a nonrecurring charge for acquired in-process research and development.
C.	Media operations net interest and other income includes interest income on acquired cash, less interest expense related to the $250 million of assumed indebtedness and $750 million of acquisition bridge financing.
D.	Tax adjustments of $60 million consist of a $63 million U.S. tax expense related to an intercompany licensing payment, offset by a $3 million benefit for reduction of foreign tax contingency accruals.

² We believe the non-GAAP measures presented here are useful to investors as they provide an alternative method for measuring the operating performance of the Company on a non-GAAP basis, excluding the impact of the media operations from the date of acquisition (September 5, 2007), media-related in-process research and development charges and net non-recurring tax charges unrelated to the Komag acquisition. These non-GAAP financial measures are not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.