Western Digital Corporation (WDC)

[MorningLightMountain]

Western Digital® Announces Q1 Revenue Of $4 Billion And Non-GAAP Net Income Of $594 Million, Or $2.36 Per Share(1)
Date : 10/22/2012 @ 4:15PM
Source : PR Newswire (US)
Stock : Western Digital Corp. (MM) (WDC)
Quote : 35.28 0.4 (1.15%) @ 5:28PM

Western Digital® Announces Q1 Revenue Of $4 Billion And Non-GAAP Net Income Of $594 Million, Or $2.36 Per Share(1)
Print
Alert
Western Digital Corp. (MM) (NASDAQ:WDC)
Intraday Stock Chart
Today : Monday 22 October 2012


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, storageand 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 [phone] 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.

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












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


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



























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








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

SOURCE Western Digital Corp.


Copyright 2012 PR Newswire