Western Digital Announces Q2 Revenue of US$3.8 Billion and Non-GAAP Net Income of US$513 Million, or US$2.09 Per Share
MANILA, Philippines — Jan. 25, 2013 — Western Digital® Corp. (NASDAQ: WDC) today reported revenue of US$3.8 billion, hard-drive shipments of 59.2 million and net income of US$335 million, or US$1.36 per share for its second fiscal quarter ended Dec. 28, 2012. On a non-GAAP basis, net income was US$513 million or US$2.09 per share.1 In the year-ago quarter, the company reported revenue of US$2.0 billion, net income of US$145 million, or US$0.61 per share, and shipped 28.5 million hard drives. Non-GAAP net income in the year-ago quarter was US$358 million, or US$1.51 per share.2
The company generated US$772 million in cash from operations during the December quarter, ending with total cash and cash equivalents of US$3.8 billion. During the quarter, the company utilized US$146 million to buy back 4.2 million shares of common stock. On Dec. 3, the company declared a US$0.25 per common share dividend, which was paid on Dec. 26.
“We are pleased with our December quarter results, reflecting outstanding execution and value creation by our HGST and WD® teams,” said Steve Milligan, president and chief executive officer. “In an environment marked by continued macro economic uncertainty, soft PC demand and inventory rebalancing by our customers, we continue to manage our business by focusing on those variables that we control, allowing us to generate better than expected revenue and profitability and strong cash generation.”
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.
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 revenue, profitability and cash generation. 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-Q filed with the SEC on Nov. 2, 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.
Second Quarter Fiscal 2013 Investor Information Summary
1 Non-GAAP net income for the second quarter fiscal 2013 consists of GAAP net income of US$335 million plus US$88 million for a tax-related matter, US$49 million of amortization of intangibles related to the acquisition of HGST and US$41 million related to employee termination benefits and other charges. Non-GAAP earnings per share of US$2.09 for the second quarter is calculated by using the same 246 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 second quarter fiscal 2012 consists of GAAP net income of US$145 million plus US$199 million for charges and expenses related to the flooding and US$14 million of acquisition-related expenses. Non-GAAP earnings per share of US$1.51 for the second quarter is calculated by using the same 237 million diluted shares as is used for GAAP earnings per share.