Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - WESTERN DIGITAL CORP | d616668dex992.htm |
| 8-K - FORM 8-K - WESTERN DIGITAL CORP | d616668d8k.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 $3.8 BILLION AND
NON-GAAP NET INCOME OF $514 MILLION, OR $2.12 PER SHARE1
IRVINE, Calif. — Oct. 24, 2013 — Western Digital® Corp. (NASDAQ: WDC) today reported revenue of $3.8 billion and net income of $495 million, or $2.05 per share for its first fiscal quarter ended Sept. 27, 2013. On a non-GAAP basis, net income was $514 million or $2.12 per share.1 In the year-ago quarter, the company reported revenue of $4.0 billion, net income of $519 million, or $2.06 per share. Non-GAAP net income in the year-ago quarter was $594 million, or $2.36 per share.2
The company generated $680 million in cash from operations during the September quarter, ending with total cash and cash equivalents of $4.9 billion. During the quarter, the company utilized $150 million to buy back 2.3 million shares of common stock. On Sept. 19, the company declared a $0.25 per common share dividend, which was paid on Oct. 15.
“We continued to perform well in the September quarter as we remained focused on delivering value to our customers through differentiated and innovative storage solutions in all of our served markets,” said Steve Milligan, president and chief executive officer. “Our HGST and WD subsidiaries continued to execute very well. Outstanding linearity drove strong operating results, with gross margins above the midpoint of our model range and earnings per share well above the high end of our guidance. Longer term, we are very excited about our ability to enable the ongoing creation, storage and management of digital content by consumers and businesses.”
Western Digital Announces Q1 Revenue of $3.8 Billion and
Non-GAAP Net Income of $514 Million, or $2.12 Per Share
Page 2
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 live and archived conference call webcast can be accessed online at investor.wdc.com. The telephone replay number is 1-800-685-6364 in the U.S. or +1-402-998-0553 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 brands. Visit the Investor section of the company’s website (www.westerndigital.com) to access a variety of financial and investor information.
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Western Digital, WD and the WD logo are registered trademarks in the U.S. and other countries. HGST trademarks are intended and authorized for use only in countries and jurisdictions in which HGST has obtained the rights to use, market and advertise the brand. Other marks may be mentioned herein that belong to other companies.
| 1 | Non-GAAP net income for the first quarter fiscal 2014 consists of GAAP net income of $495 million plus $47 million of amortization of intangibles related to the acquisitions of HGST, sTec and VeloBit, $13 million of charges related to litigation, $13 million for acquisition-related expenses and $11 million related to fixed asset impairment and other charges, offset by a gain of $65 million for a flood-related insurance recovery. Non-GAAP earnings per share of $2.12 for the first quarter is calculated by using the same 242 million diluted shares as is used for GAAP earnings per share. The tax effect of the non-GAAP charges was not material. |
| 2 | Non-GAAP net income for the first quarter fiscal 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 non-GAAP charges was not material. |
WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions; unaudited)
| Sept. 27, 2013 |
June 28, 2013 |
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| ASSETS | ||||||||
| Current assets: |
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| Cash and cash equivalents |
$ | 4,869 | $ | 4,309 | ||||
| Accounts receivable, net |
1,791 | 1,793 | ||||||
| Inventories |
1,244 | 1,188 | ||||||
| Other current assets |
357 | 308 | ||||||
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| Total current assets |
8,261 | 7,598 | ||||||
| Property, plant and equipment, net |
3,638 | 3,700 | ||||||
| Goodwill |
2,051 | 1,954 | ||||||
| Other intangible assets, net |
616 | 605 | ||||||
| Other non-current assets |
240 | 179 | ||||||
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| Total assets |
$ | 14,806 | $ | 14,036 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: |
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| Accounts payable |
$ | 2,061 | $ | 1,990 | ||||
| Accrued arbitration award |
719 | 706 | ||||||
| Accrued expenses |
406 | 480 | ||||||
| Accrued compensation |
388 | 453 | ||||||
| Accrued warranty |
123 | 114 | ||||||
| Short-term debt |
500 | — | ||||||
| Current portion of long-term debt |
230 | 230 | ||||||
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| Total current liabilities |
4,427 | 3,973 | ||||||
| Long-term debt |
1,668 | 1,725 | ||||||
| Other liabilities |
458 | 445 | ||||||
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| Total liabilities |
6,553 | 6,143 | ||||||
| Total shareholders’ equity |
8,253 | 7,893 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 14,806 | $ | 14,036 | ||||
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WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts; unaudited)
| Three Months Ended | ||||||||
| Sept. 27, | Sept. 28, | |||||||
| 2013 | 2012 | |||||||
| Revenue, net |
$ | 3,804 | $ | 4,035 | ||||
| Cost of revenue |
2,716 | 2,842 | ||||||
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| Gross profit |
1,088 | 1,193 | ||||||
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| Operating expenses: |
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| Research and development |
401 | 396 | ||||||
| Selling, general and administrative |
132 | 179 | ||||||
| Charges related to arbitration award |
13 | — | ||||||
| Employee termination benefits and other charges |
— | 26 | ||||||
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| Total operating expenses |
546 | 601 | ||||||
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| Operating income |
542 | 592 | ||||||
| Net interest and other |
(10 | ) | (14 | ) | ||||
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| Income before income taxes |
532 | 578 | ||||||
| Income tax provision |
37 | 59 | ||||||
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| Net income |
$ | 495 | $ | 519 | ||||
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| Income per common share: |
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| Basic |
$ | 2.10 | $ | 2.11 | ||||
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| Diluted |
$ | 2.05 | $ | 2.06 | ||||
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| Weighted average shares outstanding: |
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| Basic |
236 | 246 | ||||||
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| Diluted |
242 | 252 | ||||||
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WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions; unaudited)
| Three Months Ended | ||||||||
| Sept. 27, | Sept. 28, | |||||||
| 2013 | 2012 | |||||||
| Cash flows from operating activities |
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| Net income |
$ | 495 | $ | 519 | ||||
| Adjustments to reconcile net income to net cash provided by operations: |
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| Depreciation and amortization |
312 | 313 | ||||||
| Stock-based compensation |
42 | 39 | ||||||
| Deferred income taxes |
(10 | ) | (12 | ) | ||||
| Gain from insurance recovery |
(65 | ) | — | |||||
| Changes in operating assets and liabilities, net |
(94 | ) | 77 | |||||
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| Net cash provided by operating activities |
680 | 936 | ||||||
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| Cash flows from investing activities |
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| Purchases of property, plant and equipment |
(136 | ) | (382 | ) | ||||
| Acquisitions, net of cash acquired |
(263 | ) | (9 | ) | ||||
| Other investing activities, net |
39 | — | ||||||
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| Net cash used in investing activities |
(360 | ) | (391 | ) | ||||
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| Cash flows from financing activities |
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| Employee stock plans, net |
7 | 60 | ||||||
| Repurchases of common stock |
(150 | ) | (218 | ) | ||||
| Dividends to shareholders |
(59 | ) | — | |||||
| Proceeds from debt |
500 | — | ||||||
| Repayment of debt |
(58 | ) | (58 | ) | ||||
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| Net cash provided by (used in) financing activities |
240 | (216 | ) | |||||
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| Net increase in cash and cash equivalents |
560 | 329 | ||||||
| Cash and cash equivalents, beginning of period |
4,309 | 3,208 | ||||||
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| Cash and cash equivalents, end of period |
$ | 4,869 | $ | 3,537 | ||||
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