Western Digital Announces Q3 Revenue Of $3.7 Billion And Non-GAAP Net Income Of $470 Million, Or $1.94 Per Share(1) - WALB.com, Albany News, Weather, Sports

Western Digital Announces Q3 Revenue Of $3.7 Billion And Non-GAAP Net Income Of $470 Million, Or $1.94 Per Share(1)

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SOURCE Western Digital Corp.

IRVINE, Calif., April 30, 2014 /PRNewswire/ -- Western Digital® Corp. (NASDAQ: WDC) today reported revenue of $3.7 billion and net income of $375 million, or $1.55 per share for its third fiscal quarter ended Mar. 28, 2014. On a non-GAAP basis, net income was $470 million or $1.94 per share.1 In the year-ago quarter, the company reported revenue of $3.8 billion, net income of $391 million, or $1.60 per share. Non-GAAP net income in the year-ago quarter was $514 million, or $2.10 per share.2

The company generated $697 million in cash from operations during the March quarter. During the quarter, the company utilized $244 million to buy back 2.8 million shares of common stock. It ended the quarter with total cash, cash equivalents and investments of $5.0 billion. On Feb. 6, the company declared a $0.30 per common-share dividend, which was paid on Apr. 15.

"We achieved solid financial results for the March quarter as we continue to participate in the ongoing growth of data, with an intense focus on helping our customers succeed in a rapidly changing environment," said Steve Milligan, president and chief executive officer. "Cash generation remained strong. Our steady financial performance continues to demonstrate an ability to manage the business and deliver ongoing value to our customers and shareholders."

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 live and archived conference call webcast can be accessed online at investor.wdc.com. The telephone replay number is 1-866-513-1237 in the U.S. or +1-203-369-1979 for international callers.

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 a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995 concerning our position in the growth of data. This forward-looking statement is 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 opportunities; business conditions and growth in the various hard drive segments; 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 Jan. 31, 2014, to which your attention is directed. Readers are cautioned not to place undue reliance on this forward-looking statement, which speaks only as of the date hereof, and the company undertakes no obligation to update this forward-looking statement to reflect subsequent events or circumstances.

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.

___________________________

1Non-GAAP net income for the third quarter fiscal 2014 consists of GAAP net income of $375 million plus $50 million of amortization of intangibles related to the acquisitions of HGST, sTec, VeloBit and Virident, $28 million related to asset impairment and other charges, $13 million of charges related to litigation and $4 million of expense due to the write-off of debt issuance costs. Non-GAAP earnings per share of $1.94 for the third quarter is calculated by using the same 242 million diluted shares as is used for GAAP earnings per share. The tax effect of the non-GAAP charges was not material.


2Non-GAAP net income for the third quarter fiscal 2013 consists of GAAP net income of $391 million plus $49 million of amortization of intangibles related to the acquisition of HGST and $74 million related to employee termination benefits and other unrelated charges. Non-GAAP earnings per share of $2.10 for the third quarter is calculated by using the same 245 million diluted shares as is used for GAAP earnings per share. The tax effect of the non-GAAP charges was not material.

 

 

 

 WESTERN DIGITAL CORPORATION 


CONDENSED CONSOLIDATED BALANCE SHEETS 


(in millions; unaudited)






Mar. 28,


June 28,


2014


2013





ASSETS





Current assets:





Cash and cash equivalents

$   4,569


$   4,309


Short-term investments

296


-


Accounts receivable, net

1,802


1,793


Inventories

1,277


1,188


Other current assets

362


308



Total current assets

8,306


7,598

Property, plant and equipment, net

3,406


3,700

Goodwill 

2,558


1,954

Other intangible assets, net

539


605

Other non-current assets

523


179



Total assets

$ 15,332


$ 14,036









LIABILITIES AND SHAREHOLDERS' EQUITY





Current liabilities:





Accounts payable

$   1,902


$   1,990


Accrued arbitration award

745


706


Accrued expenses

455


480


Accrued compensation 

409


453


Accrued warranty

111


114


Current portion of long-term debt

125


230



Total current liabilities

3,747


3,973

Long-term debt

2,344


1,725

Other liabilities

473


445



Total liabilities

6,564


6,143

Total shareholders' equity

8,768


7,893



Total liabilities and shareholders' equity

$ 15,332


$ 14,036

 

 

WESTERN DIGITAL CORPORATION


CONDENSED CONSOLIDATED STATEMENTS OF INCOME


     (in millions, except per share amounts; unaudited)





Three Months Ended


Nine Months Ended


 Mar. 28, 


 Mar. 29, 


 Mar. 28, 


 Mar. 29, 


2014


2013


2014


2013









Revenue, net

$   3,703


$   3,764


$ 11,479


$ 11,623

Cost of revenue

2,643


2,703


8,190


8,310


Gross profit

1,060


1,061


3,289


3,313

Operating expenses:









Research and development

426


396


1,248


1,170


Selling, general and administrative

202


185


563


526


Charges related to arbitration award

13


-


39


-


Employee termination benefits and other charges

-


63


-


130



Total operating expenses

641


644


1,850


1,826

Operating income

419


417


1,439


1,487


Net interest and other

(13)


(11)


(34)


(35)

Income before income taxes

406


406


1,405


1,452

Income tax provision

31


15


105


207

Net income

$       375


$       391


$   1,300


$   1,245









Income per common share:









Basic

$      1.60


$      1.64


$      5.51


$      5.14


Diluted

$      1.55


$      1.60


$      5.37


$      5.02










Weighted average shares outstanding:









Basic

235


239


236


242


Diluted

242


245


242


248

 

 

WESTERN DIGITAL CORPORATION


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


     (in millions; unaudited)




Three Months Ended


Nine Months Ended


 Mar. 28, 


 Mar. 29, 


 Mar. 28, 


 Mar. 29, 


2014


2013


2014


2013









Cash flows from operating activities








Net income

$       375


$       391


$     1,300


$   1,245

Adjustments to reconcile net income to net cash provided by operations:
















Depreciation and amortization

307


309


936


931


Stock-based compensation

41


36


125


107


Deferred income taxes

(27)


(9)


(66)


59


Gain from insurance recovery

-


-


(65)


-


Loss on disposal of assets

4


-


33


-


Non-cash portion of employee termination benefit and other charges









-


1


-


16


Other non-cash operating activities, net

21


-


21


-


Changes in operating assets and liabilities, net

(24)


(1)


(180)


77



Net cash provided by operating activities

697


727


2,104


2,435




Cash flows from investing activities








Purchases of property, plant and equipment

(161)


(188)


(467)


(816)

Acquisitions, net of cash acquired

-


26


(823)


(1)

Purchase of investments

(470)


(2)


(470)


(17)

Other investing activities, net

-


-


4


-



Net cash used in investing activities

(631)


(164)


(1,756)


(834)









Cash flows from financing activities








Employee stock plans, net

42


39


139


152

Repurchases of common stock

(244)


(243)


(544)


(607)

Dividends to shareholders

(71)


 ? 


(189)


(121)

Proceeds from debt, net of issuance costs

2,492


 ? 


2,992


 ? 

Repayment of debt

(2,371)


(115)


(2,486)


(173)



Net cash used in financing activities 

(152)


(319)


(88)


(749)

Net increase (decrease) in cash and cash equivalents

(86)


244


260


852

Cash and cash equivalents, beginning of period

4,655


3,816


4,309


3,208

Cash and cash equivalents, end of period

$   4,569


$   4,060


$     4,569


$   4,060

 

 

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