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WD(R) Announces Fiscal Q2 Revenue of $2.6 Billion With Net Income of $429 Million, or $1.85 per Share

Posted Jan 22, 2010 @ 0:29 CST

WD(R) Announces Fiscal Q2 Revenue of $2.6 Billion With Net Income of $429 Million, or $1.85 per Share

Revenue Up 44 Percent, Hard Drive Shipments Up 39 Percent, From Year-ago Quarter

LAKE FOREST, Calif., Jan 21, 2010 /PRNewswire via COMTEX/ -- Western Digital Corp. (NYSE: WDC) today reported revenue of $2.6 billion, hard drive shipments of 49.5 million units and net income of $429 million, or $1.85 per share, for its second fiscal quarter ended Jan. 1, 2010. In the year-ago quarter, the company reported revenue of $1.8 billion, hard drive shipments of 35.5 million units, and net income of $14 million. The year-ago net income included $113 million of restructuring charges.

The company generated a record $557 million in cash from operations during the second quarter, ending with total cash and cash equivalents of $2.4 billion.

"We are very pleased with WD's strong financial performance in our second fiscal quarter," said John Coyne, president and chief executive officer. "For the third consecutive quarter, we increased output in a supply constrained environment, providing strong support of our customers' growth opportunities, primarily in the consumer segment but, notably, with some emerging strength in the commercial sector. Continued customer preference for WD products, our timely investments in capital, the support of our supply partners and outstanding execution by the WD team generated record revenue and profits. A moderate pricing environment, combined with our passionate focus on cost and efficiency, enabled gross margins of 26.2 percent -- well above the high end of our model range."

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:
Click on "Conference Calls"
Telephone Replay: 800-925-0904 (toll-free)
+1-203-369-3093 (international)

About WD

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.

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