IRVINE, Calif., July 29, 2015 /PRNewswire/ -- Western
Digital® Corp. (NASDAQ: WDC) today reported revenue of
$3.2 billion and net income of
$220 million, or $0.94 per share, for its fourth fiscal quarter
ended July 3, 2015. On a non-GAAP
basis, net income was $356 million,
or $1.51 per share. In the year-ago
quarter, the company reported revenue of $3.7 billion and net income of $317 million, or $1.32 per share. Non-GAAP net income in the
year-ago quarter was $445 million, or
$1.85 per share.
The company generated $488 million
in cash from operations during the fourth fiscal quarter, ending
with total cash and cash equivalents of $5.0
billion. It utilized $198
million to repurchase 2.0 million shares of its common
stock. On May 5, the company declared
a cash dividend of $0.50 per share of
its common stock, which was paid on July
15.
For the 2015 fiscal year, the company achieved revenue of
$14.6 billion and net income of
$1.5 billion, or $6.18 per share, compared to fiscal year 2014
revenue of $15.1 billion and net
income of $1.6 billion, or
$6.68 per share. On a non-GAAP basis,
fiscal year 2015 net income was $1.8
billion, or $7.76 per share,
compared to fiscal year 2014 net income of $2.0 billion, or $8.10 per share. The company generated
$2.2 billion in cash from operations
during the 2015 fiscal year and it utilized $1.4 billion for dividends and share
repurchases.
"I am satisfied with our execution and performance in the fourth
fiscal quarter in light of the weak PC market," said Steve Milligan, president and chief executive
officer. "Our financial performance reflects our strong product and
technology positioning coupled with solid execution. We remain
positive about the opportunity to create long term value in the
evolving storage ecosystem."
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 1-800-348-3536 in the U.S. or
+1-203-369-3257 for international callers.
About Western Digital
Founded in 1970, Western Digital Corp. (NASDAQ: WDC),
Irvine, Calif., is an
industry-leading developer and manufacturer of storage solutions
that enable people to create, manage, experience and preserve
digital content. Its HGST and WD® subsidiaries are
long-time innovators in the storage industry. Western Digital
Corporation is responding to changing market needs by providing a
full portfolio of compelling, high-quality storage products with
effective technology deployment, high efficiency, flexibility and
speed. Our products are marketed under the HGST, WD and
G-Technology™ brands to OEMs, distributors, resellers, cloud
infrastructure providers and consumers. Financial and investor
information is available on the company's Investor Relations
website at investor.wdc.com.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
concerning its product and technology positioning, execution and
market opportunities. These forward-looking statements are based on
management's current expectations and are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements,
including: volatility in global economic conditions; business
conditions and growth in the storage ecosystem; pricing trends and
fluctuations in average selling prices; the availability and cost
of commodity materials and specialized product components; actions
by competitors; unexpected advances in competing technologies; the
development and introduction of products based on new technologies
and expansion into new data storage markets; and other risks and
uncertainties listed in the company's filings with the Securities
and Exchange Commission (the "SEC"), including the company's Form
10-Q filed with the SEC on May 12,
2015, to which your attention is directed. You should not
place undue reliance on these forward-looking statements, which
speak only as of the date hereof, and the company undertakes no
obligation to update these forward-looking statements to reflect
new information or events.
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.
|
WESTERN
DIGITAL CORPORATION
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jul.
3,
|
|
Jun.
27,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$ 5,024
|
|
$ 4,804
|
|
Short-term
investments
|
|
|
262
|
|
284
|
|
Accounts receivable,
net
|
|
|
1,532
|
|
1,989
|
|
Inventories
|
|
|
|
1,368
|
|
1,226
|
|
Other current
assets
|
|
|
331
|
|
417
|
|
|
Total current
assets
|
|
|
8,517
|
|
8,720
|
|
Property, plant and
equipment, net
|
|
|
2,965
|
|
3,293
|
|
Goodwill
|
|
|
2,766
|
|
2,559
|
|
Other intangible
assets, net
|
|
|
332
|
|
454
|
|
Other non-current
assets
|
|
|
601
|
|
473
|
|
|
Total
assets
|
|
|
$ 15,181
|
|
$ 15,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts
payable
|
|
|
$ 1,881
|
|
$ 1,971
|
|
Accrued arbitration
award
|
|
|
—
|
|
758
|
|
Accrued
expenses
|
|
|
470
|
|
412
|
|
Accrued
compensation
|
|
|
330
|
|
460
|
|
Accrued
warranty
|
|
|
150
|
|
119
|
|
Short-term
debt
|
|
|
255
|
|
—
|
|
Current portion of
long-term debt
|
|
|
156
|
|
125
|
|
|
Total current
liabilities
|
|
|
3,242
|
|
3,845
|
|
Long-term
debt
|
|
|
2,156
|
|
2,313
|
|
Other
liabilities
|
|
|
564
|
|
499
|
|
|
Total
liabilities
|
|
|
|
5,962
|
|
6,657
|
|
Total shareholders'
equity
|
|
|
9,219
|
|
8,842
|
|
|
Total liabilities and
shareholders' equity
|
$ 15,181
|
|
$ 15,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WESTERN DIGITAL
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions, except per
share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
|
|
|
|
|
Jul.
3,
|
|
Jun.
27,
|
|
Jul.
3,
|
|
Jun.
27,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$ 3,191
|
|
$ 3,651
|
|
$ 14,572
|
|
$15,130
|
|
Cost of
revenue
|
2,261
|
|
2,622
|
|
10,351
|
|
10,770
|
|
Gross
profit
|
930
|
|
1,029
|
|
4,221
|
|
4,360
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Research and
development
|
381
|
|
426
|
|
1,646
|
|
1,661
|
|
Selling, general and
administrative
|
190
|
|
202
|
|
773
|
|
761
|
|
Charges related to
arbitration award
|
—
|
|
13
|
|
15
|
|
52
|
|
Employee termination,
asset impairment and other charges
|
104
|
|
36
|
|
176
|
|
95
|
|
|
Total operating
expenses
|
675
|
|
677
|
|
2,610
|
|
2,569
|
|
Operating
income
|
255
|
|
352
|
|
1,611
|
|
1,791
|
|
Net interest and
other
|
(8)
|
|
(5)
|
|
(34)
|
|
(39)
|
|
Income before income
taxes
|
247
|
|
347
|
|
1,577
|
|
1,752
|
|
Income tax
provision
|
27
|
|
30
|
|
112
|
|
135
|
|
Net income
|
$ 220
|
|
$ 317
|
|
$ 1,465
|
|
$ 1,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.95
|
|
$ 1.35
|
|
$ 6.31
|
|
$ 6.88
|
|
Diluted
|
$ 0.94
|
|
$ 1.32
|
|
$ 6.18
|
|
$ 6.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
231
|
|
234
|
|
232
|
|
235
|
|
Diluted
|
235
|
|
241
|
|
237
|
|
242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WESTERN DIGITAL
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions;
unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
|
|
|
|
|
Jul.
3,
|
|
Jun.
27,
|
|
Jul.
3,
|
|
Jun.
27,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$ 220
|
|
$ 317
|
|
$ 1,465
|
|
$ 1,617
|
|
Adjustments to
reconcile net income to net cash provided by
operations:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
250
|
|
308
|
|
1,114
|
|
1,244
|
|
Stock-based
compensation
|
|
45
|
|
31
|
|
162
|
|
156
|
|
Deferred income
taxes
|
|
19
|
|
53
|
|
28
|
|
(13)
|
|
Gain from insurance
recovery
|
|
—
|
|
—
|
|
(37)
|
|
(65)
|
|
Loss on disposal of
assets
|
|
3
|
|
7
|
|
17
|
|
40
|
|
Non-cash portion of
employee termination, asset
impairment and other
charges
|
|
74
|
|
36
|
|
86
|
|
62
|
|
Other non-cash
operating activities, net
|
|
—
|
|
5
|
|
—
|
|
9
|
|
Changes in operating
assets and liabilities, net
|
|
(123)
|
|
(44)
|
|
(593)
|
|
(234)
|
|
|
Net cash provided by
operating activities
|
|
488
|
|
713
|
|
2,242
|
|
2,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
(156)
|
|
(161)
|
|
(612)
|
|
(628)
|
|
Acquisitions, net of
cash acquired
|
|
(10)
|
|
—
|
|
(257)
|
|
(823)
|
|
Purchases of
investments
|
|
(170)
|
|
(91)
|
|
(857)
|
|
(561)
|
|
Proceeds from sales
and maturities of investments
|
|
103
|
|
72
|
|
768
|
|
72
|
|
Proceeds from sale of
property, plant and equipment
|
|
—
|
|
—
|
|
7
|
|
—
|
|
Other investing
activities, net
|
|
(8)
|
|
—
|
|
(2)
|
|
4
|
|
|
Net cash used in
investing activities
|
|
(241)
|
|
(180)
|
|
(953)
|
|
(1,936)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
Employee stock plans,
net
|
|
55
|
|
75
|
|
167
|
|
215
|
|
Repurchases of common
stock
|
|
(198)
|
|
(272)
|
|
(970)
|
|
(816)
|
|
Dividends paid to
shareholders
|
|
(116)
|
|
(70)
|
|
(396)
|
|
(259)
|
|
Proceeds from debt,
net of issuance costs
|
|
255
|
|
—
|
|
255
|
|
2,992
|
|
Repayment of
debt
|
|
(31)
|
|
(31)
|
|
(125)
|
|
(2,517)
|
|
|
Net cash used in
financing activities
|
|
(35)
|
|
(298)
|
|
(1,069)
|
|
(385)
|
|
Net increase in cash
and cash equivalents
|
|
212
|
|
235
|
|
220
|
|
495
|
|
Cash and cash
equivalents, beginning of period
|
|
4,812
|
|
4,569
|
|
4,804
|
|
4,309
|
|
Cash and cash
equivalents, end of period
|
|
$ 5,024
|
|
$ 4,804
|
|
$ 5,024
|
|
$ 4,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WESTERN DIGITAL
CORPORATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP TO NON-GAAP
NET INCOME RECONCILIATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions,
except per share amounts; unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Years
Ended
|
|
|
|
|
|
|
|
Jul.
3,
|
|
Jun.
27,
|
|
Jul.
3,
|
|
Jun.
27,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
|
$
220
|
|
$
317
|
|
$ 1,465
|
|
$ 1,617
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets
|
|
28
|
|
47
|
|
163
|
|
195
|
|
Employee termination,
asset impairment and other charges
|
|
104
|
|
36
|
|
176
|
|
95
|
|
Charges related to
arbitration award
|
|
—
|
|
13
|
|
15
|
|
52
|
|
Acquisition-related
adjustments
|
|
—
|
|
—
|
|
3
|
|
13
|
|
Flood-related
insurance recovery
|
|
—
|
|
—
|
|
(37)
|
|
(65)
|
|
Other
|
|
4
|
|
32
|
|
55
|
|
54
|
|
Non-GAAP net
income
|
|
$
356
|
|
$
445
|
|
$ 1,840
|
|
$ 1,961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share:
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
0.94
|
|
$
1.32
|
|
$
6.18
|
|
$
6.68
|
|
Non-GAAP
|
|
$
1.51
|
|
$
1.85
|
|
$
7.76
|
|
$
8.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
235
|
|
241
|
|
237
|
|
242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table above sets
forth non-GAAP net income and non-GAAP diluted net income per
common share. These non-GAAP net income and diluted net income per
common share measures exclude amortization of intangible assets
related to acquisitions, certain employee termination, asset
impairment and other charges, certain charges related to an
arbitration award and other charges that are unusual, non-recurring
or may not be indicative of ongoing operations. The Company
believes that non-GAAP net income and non-GAAP earnings per share
are useful measures to investors as an alternative method for
measuring the Company's earnings performance and comparing it
against prior periods. The presentation of these adjusted amounts
vary from numbers presented in accordance with U.S. GAAP and
therefore may not be comparable to amounts reported by other
companies. The tax effect of the aforementioned items was not
material to the condensed consolidated statements of income for the
three and twelve month periods ended July 3, 2015 and June 27,
2014.
|
http://photos.prnewswire.com/prnh/20000711/WDCLOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/western-digital-announces-financial-results-for-fourth-quarter-and-fiscal-year-2015-300120792.html
SOURCE Western Digital Corp.