WD ANNOUNCES Q4 REVENUE OF $2.4 BILLION
Posted: Wed Jul 21, 2010 4:42 pm
WD ANNOUNCES Q4 REVENUE OF $2.4 BILLION AND NET INCOME OF $265 MILLION, OR $1.13 PER SHARE
Full-Year Revenue Totals $9.8 Billion, Up 32 Percent, Net Income of $5.93 Per Share, Up 185 Percent
Full-Year Revenue Totals $9.8 Billion, Up 32 Percent, Net Income of $5.93 Per Share, Up 185 Percent
LAKE FOREST, Calif. - Jul. 21, 2010 - Western Digital Corp. (NYSE: WDC) today reported financial results for its fiscal year 2010 and fourth quarter ended July 2, 2010.
For the quarter, revenue totaled $2.4 billion, hard drive unit shipments were 49.7 million and net income was $265 million, or $1.13 per share. The quarterly results included $27 million of expense related to litigation settlements. In the year-ago quarter, the company posted revenue of $1.9 billion, shipped 40.0 million hard drives, and reported net income and earnings per share of $196 million and $0.86, respectively. This included $5 million of income from the resolution of restructuring accruals and an $18 million gain on the sale of the company's substrate manufacturing facility in Sarawak, Malaysia.
The company generated $363 million in cash from operations during the June quarter, ending with total cash and cash equivalents of $2.7 billion. As previously announced, the company completed the acquisition of the magnetic media sputtering operations of Hoya Corporation during the June quarter for $233 million in cash.
For fiscal year 2010, the company posted revenue of $9.8 billion and net income of $1.4 billion, or $5.93 per share, compared to revenue of $7.5 billion and net income of $470 million, or $2.08 per share, for the prior year. The 2010 net income included the $27 million of expense in the fiscal fourth quarter related to litigation settlements. The 2009 net income included a $14 million in-process research and development charge related to the acquisition of SiliconSystems, Inc., $112 million of restructuring charges with related tax benefits of $4 million, and an $18 million gain on the sale of the company's substrate manufacturing facility.
In fiscal year 2010, WD grew revenue 32 percent and increased its operating income by 194 percent year-on-year.
"Despite softer than anticipated June quarter demand, fiscal year 2010 was another year of significant growth and profitability for Western Digital," said John Coyne, president and chief executive officer. "The long-term demand for low-cost, high-volume storage driven by the proliferation of data and content-hungry consumer and commercial devices remains strong. With our focus on customer needs, quality, low cost, and high asset efficiency in the highest growth markets, we believe WD is well positioned to continue to generate growth on a sustained and profitable basis."
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 call will be accessible live and on an archived basis via the link below:
* Audio Webcast: www.westerndigital.com/investor
* Click on "Conference Calls"
* Telephone Replay: 866-393-2012 (toll free)
* +1-203-369-0457 (international)
About WD
WD, one of the storage industry's pioneers and long-time leaders, provides products and services for people and organizations that collect, manage and use digital information. The company designs and produces reliable, high-performance hard drives and solid state drives that keep users' data accessible and secure from loss. Its advanced technologies are configured into applications for client and enterprise computing, embedded systems and consumer electronics, as well as its own consumer storage and media products.