Western Digital Reveals Q2 Revenues

January 19, 2011 by | Comments

Western Digital announced revenue of $2.475 billion, hard-drive unit shipments of 52.2 million and net income of $225 million, or $0.96 per share, for its second fiscal quarter ended Dec. 31, 2010. In the year-ago quarter, the company reported revenue of $2.619 billion, shipped 49.5 million hard drives, and reported net income and earnings per share of $429 million and $1.85, respectively.

The company generated $505 million in cash from operations during the December quarter, ending with total cash and cash equivalents of $3.1 billion.

“We are pleased to deliver better-than-expected revenues, profitability and gross margin in the December quarter, reflecting solid execution and an improvement in hard drive industry conditions compared with the prior two quarters,” said John Coyne, president and chief executive officer. “The opportunity for profitable growth in our industry remains tremendous and we are committed to improving our financial performance over the longer term. We plan to do so with a continued emphasis on our industry-leading low-cost structure, high quality, highly reliable and highly available products, and a sharp focus on matching production with true customer demand.”

The investment community conference call to discuss these results will be broadcast live over the Internet today at 3 p.m. PST/6 p.m. EST. The call will be accessible live and on an archived basis via the link below. The company is publishing an expanded investor summary sheet today on the investor relations section of its Web site. After the conclusion of today’s webcast conference call, the summary sheet will be updated to reflect the company’s guidance.

Audio webcast:

www.westerndigital.com/investor

Click on “Conference Calls”

Telephone replay:

888-568-0891 (toll free)

+1-402-998-1567 (international)

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)

Dec. 31,

Jul. 2,

2010

2010

ASSETS

Current assets:

Cash and cash equivalents

$ 3,110

$ 2,734

Accounts receivable, net

1,250

1,256

Inventories

568

560

Other

192

170

Total current assets

5,120

4,720

Property and equipment, net

2,277

2,159

Goodwill

151

146

Other intangible assets, net

79

88

Other assets

216

215

Total assets

$ 7,843

$ 7,328

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$ 1,628

$ 1,507

Accrued expenses

262

281

Accrued warranty

135

129

Current portion of long-term debt

119

106

Total current liabilities

2,144

2,023

Long-term debt

231

294

Other liabilities

309

302

Total liabilities

2,684

2,619

Shareholders’ equity

5,159

4,709

Total liabilities and shareholders’ equity

$ 7,843

$ 7,328

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts)

(unaudited)

Three Months Ended

Six Months Ended

Dec. 31,

Jan. 1,

Dec. 31,

Jan. 1,

2010

2010

2010

2010

Revenue, net

$ 2,475

$ 2,619

$ 4,871

$ 4,827

Cost of revenue

2,000

1,932

3,959

3,626

Gross margin

475

687

912

1,201

Operating expenses:

Research and development

169

154

336

296

Selling, general and administrative

66

60

125

113

Total operating expenses

235

214

461

409

Operating income

240

473

451

792

Net interest and other

(1)

(2)

(1)

(4)

Income before income taxes

239

471

450

788

Income tax provision

14

42

28

71

Net income

$ 225

$ 429

$ 422

$ 717

Income per common share:

Basic

$ 0.98

$ 1.89

$ 1.83

$ 3.17

Diluted

$ 0.96

$ 1.85

$ 1.80

$ 3.10

Weighted average shares outstanding:

Basic

230

227

230

226

Diluted

235

232

235

231

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

Three Months Ended

Six Months Ended

Dec. 31,

Jan. 1,

Dec. 31,

Jan. 1,

2010

2010

2010

2010

Cash flows from operating activities

Net income

$ 225

$ 429

$ 422

$ 717

Adjustments to reconcile net income to net cash

provided by operations:

Depreciation and amortization

151

126

301

247

Stock-based compensation

18

13

37

27

Deferred income taxes

1

(5)

1

(5)

Changes in operating assets and liabilities

110

(6)

134

5

Net cash provided by operating activities

505

557

895

991

Cash flows from investing activities

Purchases of property and equipment

(250)

(199)

(450)

(375)

Sales and maturities of investments

-

3

-

3

Net cash used in investing activities

(250)

(196)

(450)

(372)

Cash flows from financing activities

Employee stock plans, net

22

37

31

60

Repurchases of common stock

-

-

(50)

-

Repayment of long-term debt

(25)

(19)

(50)

(38)

Net cash provided by (used in) financing activities

(3)

18

(69)

22

Net increase in cash and cash equivalents

252

379

376

641

Cash and cash equivalents, beginning of period

2,858

2,056

2,734

1,794

Cash and cash equivalents, end of period

$ 3,110

$ 2,435

$ 3,110

$ 2,435

–(Western Digital Corp. News Release)–

Enjoyed it? Share it!

Digg facebook delicious live
google linkedin myspace reddit
stumble technorati twitter Yahoo
This page is archived in:

- Feeds - Financial - News 

Stay Tuned...
RSS
RSS
e-Mail