Western Digital® Announces Q1 Revenue Of $4 Billion And Non-GAAP Net Income Of $594 Million, Or $2.36 Per Share(1)
IRVINE, Calif., Oct. 22, 2012 /PRNewswire/ — 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.
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(TM) 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, 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, Jun. 29,
2012 2012
---- ----
ASSETS
Current assets:
Cash and cash
equivalents $3,537 $3,208
Accounts
receivable, net 1,951 2,364
Inventories 1,304 1,210
Other 394 359
-----
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
--- ---
Total assets $14,172 $14,206
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
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
--- ---
Total liabilities 6,135 6,537
Total shareholders' equity 8,037 7,669
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, Sept. 30,
2012 2011
---- ----
Revenue, net $4,035 $2,694
Cost of revenue 2,842 2,153
----- -----
Gross margin 1,193 541
-------
Operating expenses:
Research and
development 396 193
Selling,
general and
administrative 179 89
Employee
termination
benefits and
other charges 26 ?
-------
Total operating expenses 601 282
--- ---
Operating income 592 259
Net interest
and other (14) (1)
-------
Income before income taxes 578 258
Income tax
provision 59 19
-------
Net income $519 $239
==== ====
Income per common share:
Basic $2.11 $1.03
=====
Diluted $2.06 $1.01
=======
Weighted average shares outstanding:
Basic 246 233
=====
Diluted 252 237
=======
WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
Three Months Ended
------------------
Sept. 28, Sept. 30,
2012 2011
---- ----
Cash flows from operating activities
Net income $519 $239
Adjustments to reconcile net income to net cash
provided by operations:
Depreciation
and
amortization 313 158
Stock-based
compensation 39 17
Deferred
income taxes (12) 9
Changes in
operating
assets and
liabilities,
net 77 (71)
-------
Net cash provided by
operating activities 936 352
--- ---
Cash flows from investing activities
Purchases of property, plant and equipment (382) (134)
Acquisition (9) ?
--- ---
Cash used in investing
activities (391) (134)
---- ----
Cash flows from financing activities
Employee stock plans, net 60 (2)
Repurchases of common stock (218) ?
Repayment of debt (58) (31)
--- ---
Net cash used in
financing activities (216) (33)
---- ---
Net increase in cash and cash equivalents 329 185
Cash and cash equivalents, beginning of
period 3,208 3,490
----- -----
Cash and cash equivalents, end of period $3,537 $3,675
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SOURCE Western Digital Corp.
