WDC just announced earnings.......it hit a home run!
Ya hoooooooo! Cha-ching, cha-ching, cha-ching!
ted
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Western Digital Reports Revenue of $749.5 Million, 10.3 Million Units Shipped, EPS of $.36 for Second Fiscal Quarter
Sequential Growth of 29% in Revenues, 200% in Operating Income;
ASPs Rise in Favorable Industry Environment
LAKE FOREST, Calif., Jan. 23 /PRNewswire-FirstCall/ -- Western Digital Corp. (NYSE:WDC) today reported revenues of $749.5 million on shipments of approximately 10.3 million units, and net income of $74.4 million, or $.36 per share, for its second fiscal quarter ended December 27, 2002. Excluding a $1.3 million non-recurring gain from discontinued operations, net income would have been $73.0 million, or $.36 per share.
For the year-ago quarter ended December 28, 2001, the Company reported revenue of $574.7 million on shipments of approximately 7.7 million units, and net income of $12.6 million, or $.07 per share. Excluding $3.5 million of non-recurring investment gains, net income for the year-ago period would have been $9.1 million, or $.05 per share.
On a sequential basis, the second quarter results represented 20 percent growth in units from 8.6 million in the first fiscal quarter ended September 27, 2002, 29 percent growth in revenues from $583 million, and a 200 percent increase in operating income. Gross profit increased 72 percent as gross margins expanded to 19.2 percent from 14.3 percent.
"The hard drive industry faced very favorable conditions in the second quarter and Western Digital executed extremely well in addressing customer needs in this context," said Matt Massengill, chairman and chief executive officer. "These results demonstrate the significant earnings leverage and financial efficiency of our business and operating model."
Massengill noted that the Company's average selling price rose to $73, from $68 in the September quarter, reflecting favorable industry supply/demand conditions, especially in the distribution channel, and a richer mix of multi-platter hard drives for Western Digital.
"Business with the major PC OEM customers was strong, our distribution sales were on track, and our retail business was very healthy," said Massengill. "We saw strength across all geographies, with the sharpest sequential gains coming in North America and in Asia-Pacific, where we have increased our focus and made inroads with OEMs."
The Company's balance sheet was strengthened as its cash position increased $82 million to $327 million from the September quarter. Cash generated from operations was $92 million, up $47 million sequentially due to improved profitability and outstanding asset management.
The investment community conference call to discuss second quarter financial results and our outlook will be broadcast live over the Internet today at 2 p.m. PST/5 p.m. EST. The live and archive audio webcast will be available in the Conference Call section of our Web site at westerndigital.com . A telephone replay will be available at 402.220.3077 through Feb. 1, 2003.
About Western Digital
Western Digital, 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 produces reliable, high-performance hard drives that keep users' data close-at-hand and secure from loss.
Western Digital was founded in 1970. The Company's storage products are marketed to leading systems manufacturers and selected resellers under the Western Digital brand name. Visit the Investor section of the Company's Web site ( www.westerndigital.com ) to access a variety of financial and investor information.
This release contains forward-looking statements, including statements relating to our earnings leverage and the financial efficiency of our business and operating model. The forward-looking statements are based on current management expectations, and actual results may differ materially as a result of several factors, including: levels of operating expense and product cost; supply and demand conditions in the hard drive industry; uncertainties related to the development and introduction of products based on new technologies; changes in product and customer mix; pricing trends; actions by competitors; successful entry into new markets by the Company; and other factors discussed in our recent SEC filings, including but not limited to our Form 10-K for fiscal 2002. We undertake no obligation to update or alter our forward-looking statements to reflect new information or events or for any other reason.
Western Digital and the Western Digital logo are registered trademarks of Western Digital Technologies, Inc.
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