Wednesday, July 25th 2012

Western Digital Announces Record Financial Results

Western Digital Corp. (NASDAQ: WDC) today reported revenue of $12.5 billion and net income of $1.6 billion, or $6.58 per share for fiscal year 2012, compared to fiscal 2011 revenue of $9.5 billion and net income of $726 million, or $3.09 per share. On a non-GAAP basis, fiscal 2012 net income was $2.1 billion or $8.61 per share, compared to fiscal 2011 net income of $770 million or $3.28 per share. Both the GAAP and non-GAAP fiscal 2012 results include results from the company's newly acquired HGST subsidiary from the acquisition date of March 8 through the end of fiscal 2012.

For its fourth fiscal quarter ended June 29, 2012, the company reported revenue of $4.8 billion, hard-drive shipments of 71.0 million and net income of $745 million, or $2.87 per share. On a non-GAAP basis, net income was $872 million, or $3.35 per share.2 In the year-ago quarter, the company reported revenue of $2.4 billion, net income of $158 million, or $0.67 per share, and shipped 53.8 million hard drives. Non-GAAP net income in the year-ago quarter was $193 million, or $0.81 per share.

The company generated $1.1 billion in cash from operations during the June quarter, ending with total cash and cash equivalents of $3.2 billion. During the quarter, the company repaid $558 million of debt and spent $604 million to buy back over 16 million shares of common stock.

"Fiscal 2012 was one of the most challenging and exciting years in our 42-year history," said John Coyne, chief executive officer. "While responding to two major natural disasters and completing the largest acquisition in the history of the industry, we achieved year-over-year revenue growth of 31 percent and more than doubled earnings per share.

"In the June quarter, demand was in line with our forecast as industry shipments reached 157 million units, bringing total HDD shipments for the year to 599 million units. Our WD and HGST subsidiaries both performed ahead of plan in Q4, delivering great products with consistent execution, resulting in strong revenue growth, gross margin and cash flows."

The investment community conference call to discuss these results and the company's September quarter and fiscal year 2013 outlook 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 800-274-1341 in the U.S. or +1-203-369-3636 for international callers.
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28 Comments on Western Digital Announces Record Financial Results

#1
Static~Charge
by: m1dg3t
They run the world, get used to it. OR fight it. CHOICE is yours :cool:
Hit them where it hurts: in the wallet. Don't buy any drives unless you absolutely have to. The last drive that I bought was an SSD; neither Seagate nor Western Digital saw one red cent from that purchase. :nutkick:
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#2
m1dg3t
You act as if they have no interest (stock) in SSD MFGs :roll: Either way we're focked!

See you in the streets :)
Posted on Reply
#3
Fx
by: Static~Charge
Hit them where it hurts: in the wallet. Don't buy any drives unless you absolutely have to. The last drive that I bought was an SSD; neither Seagate nor Western Digital saw one red cent from that purchase. :nutkick:
Great point. I suspected that they were doing this and haven't bought a drive even though I kind of needed to. I scrubbed my drives of trivial data and said screw them. Even if the prices come down, I will look elsewhere. This type of shrewd business practice deserves equal respect from customers- none.
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