WD Announces Q4 Revenue of $1.9 Billion and Net Income of $196 Million, or $0.86 Per Share
Full-Year Revenue Totals $7.5 Billion, Net Income of $2.08 Per Share
For fiscal year 2009, the company posted revenue of $7.5 billion, net income of $470 million, or $2.08 per share, compared to $8.1 billion in revenue, and net income of $867 million, or $3.84 per share for the prior year. The 2009 net income amount included a $14 million in-process research and development charge related to the acquisition of SiliconSystems Inc., $112 million of restructuring charges, an $18 million gain on the sale of assets from the company's media substrate manufacturing facility in Sarawak, Malaysia and $4 million of tax benefits associated with the restructuring charges. Excluding these amounts, the 2009 non-GAAP net income was $574 million, or $2.54 per share.(1) The 2008 net income amount included net charges of $60 million for taxes related to the license of intellectual property to subsidiaries and $49 million for acquired in-process research and development related to the acquisition of Komag Inc. Excluding these amounts, 2008 non-GAAP net income was $976 million, or $4.32 per share.(2)
For the fourth quarter, revenue totaled $1.9 billion, on shipments of 40 million hard drives and net income of $196 million, or $0.86 per share. The fourth quarter results include $5 million of income from favorable settlements of restructuring accruals and the $18 million gain on the sale of assets from the company's media substrate manufacturing facility. Excluding these amounts, fourth quarter non-GAAP net income was $173 million, or $0.76 per share.(3) In the year-ago fourth quarter, the company posted revenue of $2.0 billion on unit shipments of 35.2 million hard drives, net income of $213 million, and earnings per share of $0.94.
The company generated $349 million in cash from operations during the June quarter, ending with total cash and cash equivalents of $1.8 billion.
Throughout fiscal 2009, WD demonstrated increasing returns on its investments in technology, product breadth and production capability, with consistent delivery of compelling first-to-market products. The company maintained its momentum as the industry's leading innovator with the announcement yesterday of another industry first - the 1 TB My Passport(TM) Essential(TM) SE external storage device which utilizes the company's new, industry leading, WD Scorpio® Blue(TM) 2.5-inch hard drives with 333 GB/platter technology.
"In a challenging time for the worldwide economy and the hard drive industry, WD maintained profitability and stayed cash flow positive throughout the fiscal year," said John Coyne, president and chief executive officer. "Our fiscal 2009 and June quarter results demonstrate customers' ongoing preference for WD products based on their exceptional quality, reliability and availability, as well as the continued effectiveness of the WD business model and the passion, nimbleness and capabilities of the WD team. In the June quarter, we responded promptly to capitalize on unexpected market upside in each of our served markets to produce financial results that significantly exceeded expectations, and included a return to our targeted gross margin and operating expense model parameters."
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 call will be accessible live and on an archived basis via the link below:
Audio Webcast: www.westerndigital.com/... (Click on “Conference Calls”)
Telephone Replay: 888-568-0383 (toll-free); +1-203-369-3915 (international)
Western Digital Deutschland GmbH
WD, 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 designs and produces reliable, high-performance hard drives and solid state drives that keep users' data accessible and secure from loss. Its advanced technologies are configured into applications for client and enterprise computing, embedded systems and consumer electronics, as well as its own consumer storage and media products.
WD was founded in 1970. The company's storage products are marketed to leading OEMs, systems manufacturers, selected resellers and retailers under the Western Digital® and WD brand names. Visit the Investor section of the company's Web site (http://www.westerndigital.com/...) to access a variety of financial and investor information.
This press release contains forward-looking statements concerning WD's gross margin and operating expense model. The foregoing forward-looking statements are based on WD's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including: the impact of current negative global economic conditions; supply and demand conditions in the hard drive industry; 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 markets; business conditions and growth in the various hard drive markets; pricing trends and fluctuations in average selling prices; changes in the availability and cost of commodity materials and specialized product components that WD does not make internally; and other risks and uncertainties listed in WD's recent Form 10-Q filed with the SEC on April 24, 2009, to which your attention is directed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and WD undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
Western Digital, WD, the WD logo and WD Scorpio are registered trademarks, and My Passport, Essential and Blue are trademarks, of Western Digital Technologies, Inc. in the U.S. and other countries. As used for storage capacity, one megabyte (MB) = one million bytes, one gigabyte (GB) = one billion bytes, and one terabyte (TB) = one trillion bytes. Total accessible capacity varies depending on operating environment.
(1) 2009 GAAP and non-GAAP earnings per share are calculated using 226 million diluted shares.
(2) 2008 GAAP and non-GAAP earnings per share are calculated using 226 million diluted shares.
(3) Fourth-quarter 2009 GAAP and non-GAAP earnings per share are calculated using 227 million diluted shares.