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WD® Announces Q1 Revenue of $2.7 Billion and Net Income of $239 Million, or $1.01 Per Share
Oct 19, 2011 (04:10 PM EDT)


Company to Update Impact of Thailand Floods in Today's Conference Call

IRVINE, Calif., Oct. 19, 2011 /PRNewswire-FirstCall/ -- 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.

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.

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.

(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.

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



(Logo:  http://photos.prnewswire.com/prnh/20000711/WDCLOGO)

SOURCE Western Digital Corp.