WESTERN DIGITAL CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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EX-99.2 - EXHIBIT 99.2 - WESTERN DIGITAL CORP	c15741exv99w2.htm
8-K - FORM 8-K - WESTERN DIGITAL CORP	c15741e8vk.htm

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 Q3 REVENUE OF $2.25 BILLION AND
NET INCOME OF $146 MILLION, OR $0.62 PER SHARE

IRVINE, Calif.—Apr. 20, 2011—Western Digital Corp. (NYSE: WDC) today reported revenue of $2.25 billion, hard-drive unit shipments of 50 million and net income of $146 million, or $0.62 per share, for its third fiscal quarter ended Apr. 1, 2011. The company’s results include expenses of $10 million associated with the planned acquisition of Hitachi Global Storage Technologies announced Mar. 7, 2011. Excluding the acquisition-related expenses, non-GAAP net income was $156 million or $0.66 per share.¹

In the year-ago quarter, the company reported revenue of $2.64 billion, shipped 51 million hard drives, and reported net income and earnings per share of $400 million and $1.71, respectively.

The company generated $313 million in cash from operations during the March quarter, ending with total cash and cash equivalents of $3.2 billion.

“The March quarter in the hard drive industry was impacted by two significant developments—the delayed supply of Industry CPUs to PC makers and the tragic events in Japan,” said


¹		Non-GAAP net income consists of GAAP net income of $146 million plus $10 million of acquisition-related expenses. Non-GAAP earnings per share of $0.66 is calculated by using the same 236 million diluted shares as is used for GAAP earnings per share. The tax effect of the acquisition-related expenses was not material.

WD Announces Q3 Revenue of $2.25 Billion and
Net Income of $146 Million, or $0.62 Per Share
Page 2

John Coyne, president and chief executive officer. “While demand for hard drives in the quarter got off to a slow start, it later picked up as availability of CPUs improved and as fears took hold of component shortages related to the events in Japan.

“In relation to our planned acquisition of Hitachi GST, we are in the approval process with all required regulatory agencies, our integration planning is well underway and we have successfully syndicated the loan financing associated with the transaction.”

The investment community conference call to discuss these results will be broadcast live over the Internet today at 3 p.m. Pacific/6 p.m. Eastern. The call will be accessible live and on an archived basis via the link below:


Audio Webcast:		www.westerndigital.com/investor
		Click on “Conference Calls”

Telephone Replay:		800-964-3941 (toll free)
		+1-203-369-3117 (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 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 Announces Q3 Revenue of $2.25 Billion and
Net Income of $146 Million, or $0.62 Per Share
Page 3

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.

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)


	Apr. 1,		Jul. 2,
	2011		2010
ASSETS
Current assets:
Cash and cash equivalents	$	3,230	$	2,734
Accounts receivable, net		1,171		1,256
Inventories		574		560
Other		178		170

Total current assets		5,153		4,720
Property, plant and equipment, net		2,249		2,159
Goodwill		151		146
Other intangible assets, net		75		88
Other assets		211		215

Total assets	$	7,839	$	7,328


LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	1,486	$	1,507
Accrued expenses		250		281
Accrued warranty		134		129
Current portion of long-term debt		125		106

Total current liabilities		1,995		2,023
Long-term debt		200		294
Other liabilities		328		302

Total liabilities		2,523		2,619
Shareholders’ equity		5,316		4,709

Total liabilities and shareholders’ equity	$	7,839	$	7,328

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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


	Three Months Ended					Nine Months Ended
	Apr. 1,		Apr. 2,			Apr. 1,		Apr. 2,
	2011		2010			2011		2010
Revenue, net	$	2,252	$	2,641		$	7,123	$	7,468
Cost of revenue		1,842		1,976			5,801		5,602

Gross margin		410		665			1,322		1,866

Operating expenses:
Research and development		179		160			515		456
Selling, general and administrative		73		64			198		177

Total operating expenses		252		224			713		633

Operating income		158		441			609		1,233
Net interest and other		1		(1	)		—		(5	)

Income before income taxes		159		440			609		1,228
Income tax provision		13		40			41		110

Net income	$	146	$	400		$	568	$	1,118


Income per common share:
Basic	$	0.63	$	1.75		$	2.46	$	4.93

Diluted	$	0.62	$	1.71		$	2.42	$	4.82


Weighted average shares outstanding:
Basic		232		229			231		227

Diluted		236		234			235		232

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)


	Three Months Ended						Nine Months Ended
	Apr. 1,			Apr. 2,			Apr. 1,			Apr. 2,
	2011			2010			2011			2010
Cash flows from operating activities
Net income	$	146		$	400		$	568		$	1,118
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization		151			128			452			376
Stock-based compensation		17			16			54			43
Deferred income taxes		3			4			4			(2	)
Changes in operating assets and liabilities		(4	)		40			130			44

Net cash provided by operating activities		313			588			1,208			1,579

Cash flows from investing activities
Purchases of property, plant and equipment		(175	)		(177	)		(625	)		(552	)
Sales and maturities of investments		—			1			—			4

Net cash used in investing activities		(175	)		(176	)		(625	)		(548	)

Cash flows from financing activities
Employee stock plans, net		7			(2	)		38			58
Repurchases of common stock		—			—			(50	)		—
Repayment of long-term debt		(25	)		(19	)		(75	)		(57	)

Net cash provided by (used in) financing activities		(18	)		(21	)		(87	)		1

Net increase in cash and cash equivalents		120			391			496			1,032
Cash and cash equivalents, beginning of period		3,110			2,435			2,734			1,794

Cash and cash equivalents, end of period	$	3,230		$	2,826		$	3,230		$	2,826

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