Western Digital® Announces Fiscal Year Revenue of US$15.4 Billion and Non-GAAP Net Income of US$2.1 Billion, or US$8.53 Per Share1

For Fourth Quarter, Revenue of US$3.7 Billion, Non-GAAP Net Income of US$477 Million, or US$1.96 Per Share

MANILA, Philippines — July 29, 2013 — Western Digital® Corp. (NASDAQ: WDC) today reported revenue of US$15.4 billion and net income of US$1.7 billion, or US$6.75 per share for fiscal year 2013, compared to fiscal 2012 revenue of US$12.5 billion and net income of US$1.6 billion, or US$6.58 per share. On a non-GAAP basis, fiscal 2013 net income was US$2.1 billion or US$8.53 per share, compared to fiscal 2012 net income of US$2.1 billion or US$8.61 per share.¹

For its fourth fiscal quarter ended June 28, 2013, the company reported revenue of US$3.7 billion, hard-drive shipments of 59.9 million and net income of US$416 million, or US$1.71 per share. On a non-GAAP basis, net income was US$477 million or US$1.96 per share.² In the year-ago quarter, the company reported revenue of US$4.8 billion, net income of US$745 million, or US$2.87 per share, and shipped 71.0 million hard drives. Non-GAAP net income in the year-ago quarter was US$872 million, or US$3.35 per share.³

The company generated US$684 million in cash from operations during the June quarter, ending with total cash and cash equivalents of US$4.3 billion. For fiscal year 2013, the company generated US$3.1 billion in cash from operations and its free cash flow totaled US$2.2 billion.⁴ During the quarter, the company utilized US$235 million to buy back 4.4 million shares of common stock. On May 15, the company declared a US$0.25 per common share dividend, which was paid on July 15.

“I am pleased with our performance in fiscal year 2013 and the June quarter, reflecting our expanding participation in the storage market, including the cloud and personal storage as we address the ongoing growth in digital data,” said Steve Milligan, president and chief executive officer of Western Digital. “Our financial results were strong with significant free cash flow generation, we continued to forecast the market accurately and we had outstanding execution by our HGST and WD® subsidiaries.”

As reported in our Form 8-K filed on July 22, 2013, the Court of Appeals of the State of Minnesota reversed the decision of the District Court of Hennepin County, Minnesota, which had vacated a US$630.4 million final arbitration award against the company and ordered a rehearing of certain claims in the arbitration between Western Digital and Seagate Technology, LLC. The financial information reported in this press release does not include any additional accrual for the arbitration award. Western Digital is reviewing the decision of the Minnesota Court of Appeals and will make a determination of whether or not to record an accrual in its results for the quarter ended June 28, 2013, after it completes its review. 

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 concerning the company’s market participation and growth of digital data. These forward-looking statements are 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 May 3, 2013, to which your attention is directed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speaks only as of the date hereof, and the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

Financial Statements 

Fourth Quarter Fiscal 2013 Quarterly Fact Sheet 

¹ Non-GAAP net income for fiscal 2013 consists of GAAP net income of US$1.7 billion plus US$193 million for amortization of intangibles related to the acquisition of HGST, US$138 million for employee termination benefits and other charges and a net US$106 million for tax-related matters and other unrelated charges. Non-GAAP earnings per share of US$8.53 for fiscal 2013 is calculated by using the same 246 million diluted shares as is used for GAAP earnings per share. Non-GAAP net income for fiscal 2012 consists of GAAP net income of US$1.6 billion plus US$214 million of charges and expenses related to the flooding net of recoveries, US$91 million for costs recognized upon the sale of acquired inventory that was written-up to fair value, US$80 million related to restructuring, US$63 million for amortization of intangibles related to the acquisition of HGST, US$62 million of acquisition-related expenses, US$7 million of litigation accruals, less US$20 million of tax effects related to the aforementioned items. Non-GAAP earnings per share of US$8.61 for fiscal 2012 is calculated by using the same 245 million diluted shares as is used for GAAP earnings per share.

 

² Non-GAAP net income for the fourth quarter fiscal 2013 consists of GAAP net income of US$416 million plus US$46 million for amortization of intangibles related to the acquisition of HGST and US$15 million for employee termination benefits and other unrelated charges. Non-GAAP earnings per share of US$1.96 for the fourth quarter is calculated by using the same 243 million diluted shares as is used for GAAP earnings per share.

³ Non-GAAP net income for the fourth quarter fiscal 2012 consists of GAAP net income of US$745 million plus US$51 million for amortization of intangibles related to the acquisition of HGST, US$80 million related to restructuring less a US$4 million tax effect related to the restructuring. Non-GAAP earnings per share of US$3.35 for the fourth quarter is calculated by using the same 260 million diluted shares as is used for GAAP earnings per share.

⁴ Free cash flow for fiscal 2013 consists of cash flows from operations of US$3.1 billion less US$952 million of capital expenditures.

Western Digital, WD and the WD logo are registered trademarks in the U.S. and other countries. HGST trademarks are intended and authorized for use only in countries and jurisdictions in which HGST has obtained the rights to use, market and advertise the brand. Other marks may be mentioned herein that belong to other companies.