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Western Digital® Announces Q3 Revenue Of $3.8 Billion And Non-GAAP Net Income Of $514 Million, Or $2.10 Per Share(1)



Western Digital® Announces Q3 Revenue Of $3.8 Billion And Non-GAAP Net Income
                    Of $514 Million, Or $2.10 Per Share(1)

PR Newswire

IRVINE, Calif., April 24, 2013

IRVINE, Calif., April 24, 2013 /PRNewswire-FirstCall/ -- Western Digital^®
Corp. (NASDAQ: WDC) today reported revenue of $3.8 billion, hard-drive
shipments of 60.2 million and net income of $391 million, or $1.60 per share
for its third fiscal quarter ended Mar. 29, 2013. On a non-GAAP basis, net
income was $514 million or $2.10 per share.^1 In the year-ago quarter, the
company reported revenue of $3.0 billion, net income of $483 million, or $1.96
per share, and shipped 44.2 million hard drives. Non-GAAP net income in the
year-ago quarter was $619 million, or $2.52 per share.^2

The company generated $727 million in cash from operations during the March
quarter, ending with total cash and cash equivalents of $4.1 billion. During
the quarter, the company utilized $243 million to buy back 5.2 million shares
of common stock. On Feb. 14, the company declared a $0.25 per common share
dividend, which was paid on Apr. 15.

"Strong execution by our HGST and WD subsidiaries drove outstanding results in
the March quarter as we continue to capitalize on the secular growth of
digital data," said Steve Milligan, president and chief executive officer.
"Overall industry demand was in line with our expectations. In our business,
we saw strength in enterprise, stable performance in client and consumer
electronics, and some anticipated seasonal softness in Branded Products."

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 800-685-1235 in the U.S. or
+1-203-369-3419 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 a forward-looking statement within the meaning of
the Private Securities Litigation Reform Act of 1995 concerning the growth of
digital data. This forward-looking statement is based on management's current
expectations and is subject to risks and uncertainties that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statement, 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-Q filed with the SEC on Feb. 1, 2013,
to which your attention is directed. Readers are cautioned not to place undue
reliance on this forward-looking statement, which speaks only as of the date
hereof, and the company undertakes no obligation to update this
forward-looking statement 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.

___________________________

^1Non-GAAP net income for the third quarter fiscal 2013 consists of GAAP net
income of $391 million plus $49 million of amortization of intangibles related
to the acquisition of HGST and $74 million related to employee termination
benefits and other unrelated charges. Non-GAAP earnings per share of $2.10 for
the third quarter is calculated by using the same 245 million diluted shares
as is used for GAAP earnings per share. The tax effect of the aforementioned
items was not material.

^2 Non-GAAP net income for the third quarter fiscal 2012 consists of GAAP net
income of $483 million plus $103 million for costs recognized upon the sale of
inventory that was written-up to fair value and amortization of intangibles
related to the acquisition of HGST, $34 million of acquisition-related
expenses and $15 million for charges and expenses related to the flooding net
of recoveries, less $16 million of tax effects related to the aforementioned
items. Non-GAAP earnings per share of $2.52 for the third quarter is
calculated by using the same 246 million diluted shares as is used for GAAP
earnings per share.  

 

 WESTERN DIGITAL CORPORATION 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(in millions; unaudited)
                                             Mar. 29,     Jun. 29,
                                             2013         2012
ASSETS
Current assets:
 Cash and cash equivalents                   $     4,060  $     3,208
 Accounts receivable, net                    1,700        2,364
 Inventories                                 1,197        1,210
 Other                                       383          359
  Total current assets                       7,340        7,141
Property, plant and equipment, net           3,803        4,067
Goodwill                                     1,954        1,975
Other intangible assets, net                 656          799
Other assets                                 174          224
  Total assets                               $   13,927   $   14,206
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
 Accounts payable                            $     2,037  $     2,773
 Accrued expenses                            837          858
 Accrued warranty                            122          171
 Current portion of long-term debt           230          230
  Total current liabilities                  3,226        4,032
Long-term debt                               1,783        1,955
Other liabilities                            495          550
  Total liabilities                          5,504        6,537
Total shareholders' equity                   8,423        7,669
  Total liabilities and shareholders' equity $   13,927   $   14,206

 

     WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
     (in millions, except per share amounts)
     (unaudited)
                                   Three Months Ended    Nine Months Ended
                                    Mar.       Mar.       Mar. 29,    Mar.
                                   29,        30,                    30, 
                                   2013       2012       2013        2012
Revenue, net                       $          $          $   11,623  $    
                                   3,764      3,035                  7,724
Cost of revenue                    2,703      2,058      8,310       5,558
 Gross profit                      1,061      977        3,313       2,166
Operating expenses:
 Research and development          396        265        1,170       649
 Selling, general and              185        155        526         340
 administrative
 Employee termination benefits and 63          ―         130          ― 
 other charges
 Charges related to flooding, net   ―         15          ―          214
       Total operating expenses    644        435        1,826       1,203
Operating income                   417        542        1,487       963
 Net interest and other            (11)       (4)        (35)        (8)
Income before income taxes         406        538        1,452       955
 Income tax provision              15         55         207         88
Net income                         $          $          $           $      
                                    391        483       1,245        867
Income per common share:
 Basic                             $          $          $           $      
                                   1.64       2.00       5.14        3.67
 Diluted                           $          $          $           $      
                                   1.60       1.96       5.02        3.61
Weighted average shares
outstanding:
 Basic                             239        241        242         236
 Diluted                           245        246        248         240

 

     WESTERN DIGITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
     (in millions; unaudited)
                                        Three Months Ended   Nine Months Ended
                                         Mar.     Mar. 30,    Mar.   Mar. 30, 
                                        29,                  29, 
                                        2013     2012        2013   2012
Cash flows from operating activities
Net income                              $        $           $      $      
                                         391      483        1,245   867
Adjustments to reconcile net income to
net cash 
  provided by operations:
       Depreciation and amortization    309      188         931    486
       Stock-based compensation         36       20          107    61
       Deferred income taxes            (9)      24          59     42
       Non-cash portion of employee
       termination benefits 
           and other charges            1         ―          16      ― 
       Non-cash portion of charges       ―       10           ―     119
       related to flooding
       Changes in operating assets and  (1)      483         77     363
       liabilities, net
            Net cash provided by        727      1,208       2,435  1,938
            operating activities
Cash flows from investing activities
Purchases of property, plant and        (188)    (139)       (816)  (393)
equipment
Acquisitions, net                       26       (3,541)     (1)    (3,541)
Purchase of investments                 (2)       ―          (17)    ― 
            Net cash used in investing  (164)    (3,680)     (834)  (3,934)
            activities
Cash flows from financing activities
Employee stock plans, net               39       29          152    49
Repurchases of common stock             (243)     ―          (607)   ― 
Dividends to shareholders                ―        ―          (121)   ― 
Proceeds from debt, net of issuance      ―       2,775        ―     2,775
costs
Repayment of assumed debt                ―       (585)        ―     (585)
Repayment of debt                       (115)    (288)       (173)  (350)
            Net cash provided by (used  (319)    1,931       (749)  1,889
            in) financing activities 
Effect of exchange rate                  ―       (6)          ―     (6)
changes on cash
Net increase (decrease) in cash and     244      (547)       852    (113)
cash equivalents
Cash and cash equivalents, beginning of 3,816    3,924       3,208  3,490
period
Cash and cash equivalents, end of       $        $           $      $    
period                                  4,060    3,377       4,060  3,377

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

 

 

SOURCE Western Digital Corp.

Website: http://www.westerndigital.com
Contact: Bob Blair, Western Digital Investor Relations, 949.672.7834,
robert.blair@wdc.com, or Steve Shattuck, Western Digital Public Relations,
949.672.7817, steve.shattuck@wdc.com
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