WD ANNOUNCES Q3 Revenue of us$1.6 BILLION and
NET INCOME OF US$50 MILLION
Continued Profitability and Cash Generation Achieved While Resizing Business in Challenging Environment
Western Digital today reported revenues of US$1.6 billion, on shipments of approximately 31.6 million units and net income of US $50 million, or US $0.22 per share, for its fiscal third quarter ended March 27, 2009.
The company’s results include charges of US $14 million for in-process research and development related to the SiliconSystems, Inc. acquisition and US $4 million associated with the restructuring plan announced Dec. 17, 2008. Excluding these charges, non-GAAP net income was US $68 million or US $0.30 per share. In the year-ago quarter, the company reported revenue of US $2.1 billion, unit shipments of 34.5 million and net income of US $280 million, or US $1.23 per share.
The company generated US $355 million in cash from operations during the March quarter, ending with total cash and cash equivalents of US $1.6 billion.
“We are pleased with our financial performance in the March quarter, reflecting continued profitability and cash generation,” said John Coyne, president and chief executive officer of WD. “We managed our market segment participation, product mix and costs to optimize our returns in a challenging environment. We have taken a series of actions to resize and restructure the business to remain profitable and cash flow positive at a US $1.5 billion quarterly revenue level and the effects of these actions are already showing up in our results.”
Coyne also noted that WD sustained its investments in technology and new products in the March quarter, with growing shipments of the industry’s first 2 terabyte hard drive and of several new products in its branded products portfolio.
