IRVINE, Calif., May 26, 2016 /PRNewswire/ -- Western
Digital® Corp. (NASDAQ: WDC) today announced its updated
financial guidance for its fourth fiscal quarter ending
July 1, 2016, to reflect the
contribution of the recently acquired SanDisk business.
Reflecting the ownership of SanDisk as of May 12, 2016, Western Digital now expects its
fourth quarter revenue in the range of $3.35
billion to $3.45 billion compared to its earlier forecast of
$2.6 billion to $2.7 billion. The
company now expects its fourth quarter EPS on a non-GAAP basis to
be between $0.65 to $0.70, compared
with its earlier forecast of $1.00 to
$1.10 per share. The new guidance includes total interest
costs of approximately $220 million,
which includes interest expense on newly issued debt of
approximately $185 million and
amortization of debt issuance costs of approximately $30 million. Interest expense on the newly issued
debt includes approximately $50
million incurred prior to the deal closing date. Due to the
impact of the interest expense, the company estimates a non-GAAP
tax benefit of approximately $15
million for the quarter. Diluted share count for the
quarter, including shares issued to SanDisk shareholders as of
May 12, 2016, is expected to be 266
million, equivalent to 290 million shares on a full quarter
basis.
The company is posting an updated Quarterly Fact Sheet on the
Investor Relations section of its website (investor.wdc.com) to
reflect the updated fourth fiscal quarter guidance and include
metrics related to its debt and estimated effective tax
ranges.
The company is hosting an investment community conference call
today at 2 p.m. Pacific/5 p.m. Eastern to discuss the updated guidance.
The live and archived conference call/webcast can be accessed
online at investor.wdc.com. The telephone replay numbers are 1
(855) 859-2056 in the U.S./Canada
or dial +1 (404) 537-3406 for international callers. The required
passcode for the replay is 16177589.
Non-GAAP Financial Measures
This press release includes financial guidance relating to
non-GAAP earnings per share and a non-GAAP tax benefit. These
non-GAAP measures are not in accordance with, or an alternative
for, measures prepared in accordance with GAAP and may be different
from non-GAAP measures used by other companies. Western Digital
Corporation believes the presentation of non-GAAP measures provides
useful information to investors for measuring the company's
earnings performance and comparing it against prior periods.
These non-GAAP measures exclude amortization of acquired
intangible assets; employee termination, asset impairment and other
charges; charges related to cost saving initiatives;
acquisition-related charges; other charges; and income tax
adjustments. We exclude these items for purposes of calculating
these non-GAAP measures to facilitate a more meaningful evaluation
of our current operating performance and comparisons to our
operating performance in prior periods.
We have not reconciled our financial guidance for non-GAAP
earnings per share and non-GAAP tax benefit to their most directly
comparable GAAP measures because material items that impact these
measures, such as the timing and amount of charges related to cost
saving initiatives and employee termination, asset impairment and
other charges and the amount of amortization of acquired intangible
assets and acquisition-related charges, are out of our control
and/or cannot be reasonably predicted. Accordingly, a
reconciliation of our non-GAAP financial measure guidance to the
corresponding GAAP measures is not available without unreasonable
effort.
About Western Digital
Western Digital Corporation (NASDAQ: WDC) is an industry-leading
provider of storage technologies and solutions that enable people
to create, leverage, experience and preserve data. The company
addresses ever-changing market needs by providing a full portfolio
of compelling, high-quality storage solutions with customer-focused
innovation, high efficiency, flexibility and speed. Our products
are marketed under the HGST, SanDisk and WD 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.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements concerning the company's anticipated
financial results for its fourth fiscal quarter ending July 1, 2016. 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; impact of
competitive products and pricing; market acceptance and cost of
commodity materials and specialized product components; actions by
competitors; unexpected advances in competing technologies; our
development and introduction of products based on new technologies
and expansion into new data storage markets; risks associated with
acquisitions, mergers and joint ventures; difficulties or delays in
manufacturing; 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 9, 2016, 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, the HGST logo, SanDisk and G-Technology are
registered trademarks or trademarks of Western Digital Corporation
or its affiliates in the U.S. and/or other countries. Other
trademarks, registered trademarks, and/or service marks, indicated
or otherwise, are the property of their respective owners.
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SOURCE Western Digital Corp.