IRVINE, Calif.-Jan. 23, 2012-Western Digital Corp.
(NYSE: WDC) today reported revenue of $2.0 billion,
hard-drive unit shipments of 28.5 million and net income of
$145 million, or $0.61 per share, for its second fiscal
quarter ended Dec. 30, 2011. Excluding charges and expenses
related to the Thailand flooding and the planned acquisition
of Hitachi Global Storage Technologies (HGST), non-GAAP net
income was $358 million, or $1.51 per
share.1During the quarter, the
company incurred charges and expenses of $199 million related
to the flooding and expenses of $14 million associated with
the planned acquisition of HGST.
In the year-ago quarter, the company reported revenue of $2.5
billion, net income of $225 million, or $0.96 per share, and
shipped 52.2 million hard drives.
The company generated $378 million in cash from operations
during the December quarter, ending with total cash and cash
equivalents of $3.9 billion.
Operations Update
The company also announced it has made significant additional
progress to restore its manufacturing capacity following the
recent flooding in Thailand. It has continued to ramp HDD
production in Thailand and yesterday resumed slider
production which had been suspended since October 10. The
company now believes its manufacturing capacity will be back
to pre-flood capabilities in the quarter ending September
2012.
"We have made substantial progress in restoring WD's
manufacturing capabilities in the aftermath of the historic
flooding in Thailand, and this is reflected in our second
quarter financial results and in the resumption of our
operations there," said John Coyne, president and chief
executive officer. "While much work remains to be done
over the next several quarters to reach our pre-flood
manufacturing capabilities, the progress thus far is
significantly ahead of our original expectations and is a
tribute to the dedicated and effective actions of our
employees, contractors and Thai government agencies, the
efforts of our supply partners and the support of our
customers. We are grateful to all involved in this
extraordinary effort."
HGST Acquisition
The company's plan to complete the acquisition of HGST is
on track to close by March 2012. The company continues to
work on obtaining the regulatory approval of the transaction
from the remaining government agencies.
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. 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 1-866-403-7115 in the U.S. or +1-203-369-0585 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.
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 the company's belief that its manufacturing
capacity will be back to pre-flood capabilities in the
quarter ending September 2012 and the expected timing of its
planned acquisition of HGST. 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 about the timeframe for the full
restoration of the company's operations in Thailand and
the expansion of production capacity in Malaysia, as well as
associated costs for such restoration and expansion;
uncertainties concerning the availability and cost of
commodity materials and specialized product components and
the adverse impacts of the Thailand flooding on such
availability and associated costs; delays in or failure to
obtain any required regulatory approvals with respect to the
company's planned acquisition of HGST, or failure to
consummate or delays in consummating the transaction for
other reasons; 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-Q filed with the SEC on Oct. 28, 2011, 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.
Financial
Statements
Second
Quarter Fiscal 2012 Investor Information
Summary
1Non-GAAP net income for the second
quarter fiscal 2012 consists of GAAP net income of $145
million plus $199 million for charges and expenses related to
the flooding and $14 million of acquisition-related expenses.
Non-GAAP earnings per share of $1.51 for the second quarter
is calculated by using the same 237 million diluted shares as
is used for GAAP earnings per share.
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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.