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To: Unwelcomeguest who wrote (4328)	1/30/2020 4:17:51 PM
From: SiliconAlley	Respond to of 4826

4.2B revenue, .62 non GAAP earnings.

To: Unwelcomeguest who wrote (4328)

1/30/2020 4:18:56 PM

From: Sam

Read Replies (1) | Respond to of 4826

Western Digital Announces Financial Results for Second Quarter Fiscal Year 2020
BUSINESS WIRE 4:15 PM ET 1/30/2020

Symbol Last Price Change

WDC	66.96	+0.2 (+0.3%)
QUOTES AS OF 04:00:00 PM ET 01/30/2020

SAN JOSE, Calif.--(BUSINESS WIRE)-- Western Digital Corp.(WDC) today reported revenue of $4.2 billion for its second fiscal quarter ended January 3, 2020. Operating income was $50 million with a net loss of $139 million, or ($0.47) per share. Excluding certain non-GAAP adjustments, the company achieved non-GAAP operating income of $333 million and non-GAAP net income of $187 million, or $0.62 per share.

In the year-ago quarter, the company reported revenue of $4.2 billion, operating income of $176 million and a net loss of $487 million, or ($1.68) per share. Non-GAAP operating income in the year-ago quarter was $589 million and non-GAAP net income was $424 million, or $1.45 per share.

The company generated $257 million in cash from operations during the second fiscal quarter of 2020, and ended the quarter with $3.1 billion of total cash and cash equivalents. The company returned $149 million to shareholders through dividends and used $388 million to reduce debt. On November 14, 2019, the company declared a cash dividend of $0.50 per share of its common stock, which was paid to shareholders on January 21, 2020.

“The December quarter results reflect strong execution in our product roadmap, success in increasing our hard drive gross margin, and an improving flash market,” said Steve Milligan, chief executive officer, Western Digital(WDC). “We expect an accelerated recovery in our flash gross margins, which coupled with ongoing strength in demand for both hard drives and flash, positions us well for continued profitable growth in calendar year 2020.”

Business Outlook for Third Fiscal Quarter of 2020

	Three Months Ending April 3, 2020
	GAAP(1)	Non-GAAP(1)
Revenue ($ in billions)	$4.1 - $4.3	$4.1 - $4.3
Gross margin	~ 24.5% - 25.5%	~ 28.5% - 29.5%
Operating expenses ($ in millions)	$850 - $870	$740 - $760
Interest and other expense, net ($ in millions)	$85 - $90	$80 - $85
Tax rate	N/A	~ 25% - 27% (2)
Diluted earnings per share	N/A	$0.85 - $1.05
Diluted shares outstanding (in millions)	~ 305	~ 305

_______________

(1) Non-GAAP gross margin guidance excludes amortization of acquired intangible assets, stock-based compensation expense, and charges related to cost saving initiatives totaling approximately $150 million to $170 million. The company’s non-GAAP operating expenses guidance excludes amortization of acquired intangible assets; stock-based compensation expense; employee termination, asset impairment and other charges; and charges related to cost saving initiatives totaling approximately $100 million to $120 million. The company's non-GAAP interest and other expense guidance excludes approximately $5 million of convertible debt activity. In the aggregate, non-GAAP diluted earnings per share guidance excludes these items totaling $255 million to $295 million. The timing and amount of these charges excluded from non-GAAP gross margin, non-GAAP operating expenses, non-GAAP interest and other expense, net and non-GAAP diluted earnings per share cannot be further allocated or quantified with certainty. Additionally, the timing and amount of additional charges the company excludes from its non-GAAP tax rate and non-GAAP diluted earnings per share are dependent on the timing and determination of certain actions and cannot be reasonably predicted. Accordingly, full reconciliations of non-GAAP gross margin, non-GAAP operating expenses, non-GAAP interest and other expense, non-GAAP tax rate and non-GAAP diluted earnings per share to the most directly comparable GAAP financial measures (gross margin, operating expenses, interest and other expense, tax rate and diluted earnings per share, respectively) are not available without unreasonable effort.

(2) The non-GAAP tax rates provided are based on a percentage of non-GAAP pre-tax income.

Investor Communications

The investment community conference call to discuss these results and the company’s business outlook for the third fiscal quarter of 2020 will be broadcast live online today at 2:00 p.m. Pacific/5:00 p.m. Eastern. The live and archived conference call/webcast and the earnings presentation can be accessed online at investor.wdc.com.

continues at investor.wdc.com