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.
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.
aflesia Bravo, Roi Calilong, Buddy Caramat, Joan Co, Karen Gaerlan, Gio Gahol, She Maala, Benedict Manaois, Gie Onida, Norbs Portales, Gino Ramirez, Victor Robinson, Angela Samson, Nica Santiago, Miela Sayo, Ian Segarra, Gold Villar and Yeyin Dela Cruz.
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