Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - WESTERN DIGITAL CORP | d425868d8k.htm |
| EX-99.2 - EX-99.2 - WESTERN DIGITAL CORP | d425868dex992.htm |
Exhibit 99.1
Company contacts:
Bob Blair
Western Digital Investor Relations
949.672.7834
robert.blair@wdc.com
Steve Shattuck
Western Digital Public Relations
949.672.7817
steve.shattuck@wdc.com
FOR IMMEDIATE RELEASE:
WESTERN DIGITAL® ANNOUNCES Q1 REVENUE OF $4 BILLION AND
NON-GAAP NET INCOME OF $594 MILLION, OR $2.36 PER SHARE1
IRVINE, Calif. — Oct. 22, 2012 — Western Digital® Corp. (NASDAQ: WDC) today reported revenue of $4.0 billion, hard-drive shipments of 62.5 million and net income of $519 million, or $2.06 per share for its first fiscal quarter ended Sept. 28, 2012. On a non-GAAP basis, net income was $594 million or $2.36 per share.1 In the year-ago quarter, the company reported revenue of $2.7 billion, net income of $239 million, or $1.01 per share, and shipped 57.8 million hard drives. Non-GAAP net income in the year-ago quarter was $260 million, or $1.10 per share.2
The company generated $936 million in cash from operations during the September quarter, ending with total cash and cash equivalents of $3.5 billion. During the quarter, the company utilized $218 million to buy back 5.2 million shares of common stock. On Sept. 13, the company declared a $0.25 per common share dividend, which was paid Oct. 15.
“We are pleased to deliver another quarter of strong financial performance, continuing our track record of consistent execution,” said John Coyne, chief executive officer. “While the macroeconomic environment is dampening near term demand, we remain confident in the continued long-term growth in the creation, storage and management of digital content. Western Digital has never been better positioned to address this opportunity, with great people, deep technology, a broad product portfolio and strong customer and supplier relationships.”
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 live and archived conference call webcast can be accessed online at investor.wdc.com. The telephone replay number is 866-395-1651 in the U.S. or +1-203-369-0471 for international callers.
Western Digital Announces Q1 Revenue of $4 Billion and
Non-GAAP Net Income of $594 Million, or $2.36 Per Share1
Page 2
About Western Digital
Western Digital Corp. (NASDAQ: WDC), Irvine, Calif., is a global provider of products and services that empower people to create, manage, experience and preserve digital content. Its subsidiaries design and manufacture storage devices, networking equipment and home entertainment products under the WD®, HGST™ and G-Technology™ brands. Visit the Investor section of the company's website (www.westerndigital.com) to access a variety of financial and investor information.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements concerning industry demand and the company’s position in the industry. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including the impact of continued uncertainty and volatility in global economic conditions; supply and demand conditions in the hard drive industry; uncertainties concerning the availability and cost of commodity materials and specialized product components; 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; and other risks and uncertainties listed in the company’s filings with the Securities and Exchange Commission (the “SEC”), including the company’s recent Form 10-K filed with the SEC on Aug. 20, 2012, 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 the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
Western Digital Announces Q1 Revenue of $4 Billion and
Non-GAAP Net Income of $594 Million, or $2.36 Per Share1
Page 2
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Western Digital, WD and the WD logo are registered trademarks in the U.S. and other countries. Other marks may be mentioned herein that belong to other companies.
| 1 | Non-GAAP net income for the first quarter 2013 consists of GAAP net income of $519 million plus $49 million of amortization of intangibles related to the acquisition of HGST and $26 million related to employee termination benefits and other charges. Non-GAAP earnings per share of $2.36 for the first quarter is calculated by using the same 252 million diluted shares as is used for GAAP earnings per share. The tax effect of the employee termination benefits and other charges was not material. |
| 2 | Non-GAAP net income for the first quarter of fiscal 2012 consists of GAAP net income of $239 million plus $21 million of HGST 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. |
WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions; unaudited)
| Sept. 28, 2012 |
Jun. 29, 2012 |
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| ASSETS | ||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 3,537 | $ | 3,208 | ||||
| Accounts receivable, net |
1,951 | 2,364 | ||||||
| Inventories |
1,304 | 1,210 | ||||||
| Other |
394 | 359 | ||||||
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| Total current assets |
7,186 | 7,141 | ||||||
| Property, plant and equipment, net |
4,027 | 4,067 | ||||||
| Goodwill |
1,944 | 1,975 | ||||||
| Other intangible assets, net |
746 | 799 | ||||||
| Other assets |
269 | 224 | ||||||
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| Total assets |
$ | 14,172 | $ | 14,206 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: |
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| Accounts payable |
$ | 2,545 | $ | 2,773 | ||||
| Accrued expenses |
774 | 858 | ||||||
| Accrued warranty |
146 | 171 | ||||||
| Current portion of long-term debt |
230 | 230 | ||||||
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| Total current liabilities |
3,695 | 4,032 | ||||||
| Long-term debt |
1,898 | 1,955 | ||||||
| Other liabilities |
542 | 550 | ||||||
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| Total liabilities |
6,135 | 6,537 | ||||||
| Total shareholders’ equity |
8,037 | 7,669 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 14,172 | $ | 14,206 | ||||
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WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)
(unaudited)
| Three Months Ended | ||||||||
| Sept. 28, 2012 |
Sept. 30, 2011 |
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| Revenue, net |
$ | 4,035 | $ | 2,694 | ||||
| Cost of revenue |
2,842 | 2,153 | ||||||
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| Gross margin |
1,193 | 541 | ||||||
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| Operating expenses: |
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| Research and development |
396 | 193 | ||||||
| Selling, general and administrative |
179 | 89 | ||||||
| Employee termination benefits and other charges |
26 | — | ||||||
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| Total operating expenses |
601 | 282 | ||||||
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| Operating income |
592 | 259 | ||||||
| Net interest and other |
(14 | ) | (1 | ) | ||||
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| Income before income taxes |
578 | 258 | ||||||
| Income tax provision |
59 | 19 | ||||||
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| Net income |
$ | 519 | $ | 239 | ||||
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| Income per common share: |
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| Basic |
$ | 2.11 | $ | 1.03 | ||||
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| Diluted |
$ | 2.06 | $ | 1.01 | ||||
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| Weighted average shares outstanding: |
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| Basic |
246 | 233 | ||||||
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| Diluted |
252 | 237 | ||||||
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WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
| Three Months Ended | ||||||||
| Sept. 28, 2012 |
Sept. 30, 2011 |
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| Cash flows from operating activities |
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| Net income |
$ | 519 | $ | 239 | ||||
| Adjustments to reconcile net income to net cash provided by operations: |
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| Depreciation and amortization |
313 | 158 | ||||||
| Stock-based compensation |
39 | 17 | ||||||
| Deferred income taxes |
(12 | ) | 9 | |||||
| Changes in operating assets and liabilities, net |
77 | (71 | ) | |||||
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| Net cash provided by operating activities |
936 | 352 | ||||||
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| Cash flows from investing activities |
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| Purchases of property, plant and equipment |
(382 | ) | (134 | ) | ||||
| Acquisition |
(9 | ) | — | |||||
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| Cash used in investing activities |
(391 | ) | (134 | ) | ||||
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| Cash flows from financing activities |
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| Employee stock plans, net |
60 | (2 | ) | |||||
| Repurchases of common stock |
(218 | ) | — | |||||
| Repayment of debt |
(58 | ) | (31 | ) | ||||
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| Net cash used in financing activities |
(216 | ) | (33 | ) | ||||
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| Net increase in cash and cash equivalents |
329 | 185 | ||||||
| Cash and cash equivalents, beginning of period |
3,208 | 3,490 | ||||||
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| Cash and cash equivalents, end of period |
$ | 3,537 | $ | 3,675 | ||||
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