WD announces revenue of $2.1 bn up 50%

Western Digital Corp. (NYSE: WDC) today reported revenue of $2.1 billion, comprised of $2.022 billion of hard drive revenue and  $89 million of revenue from media and substrate sales for the third fiscal quarter ending Mar. 28, 2008. Hard drive revenue grew by 43 percent over the prior-year comparative period on shipments of approximately 34.5 million units, a year-on-year increase of 41 percent in unit volume. Net income was $280 million, or $1.23 per share. Earnings per share grew 132 percent over the prior year. In the year-ago quarter, the company reported revenue of $1.4 billion, unit shipments of 24.5 million and net income of $121 million, or $.53 per share.

The company generated $431 million in cash from operations during the March quarter, ending with total cash, cash equivalents and short-term investments of $949 million. During the quarter, the company repaid $260 million of debt and repurchased $44 million of common stock. The company recently announced an additional authorization to repurchase $500 million of its shares in the next five years.

“The hard drive market continued to demonstrate strong year-on-year unit growth of 16.2 percent in the March quarter, while exhibiting an expected seasonal decline of 8.6 percent from the exceptionally strong December quarter, as anticipated in our guidance for the quarter issued on January 23,” said John Coyne, WD president and chief executive officer. “Our March quarter revenues demonstrate strong customer preference for the WD value proposition of quality and reliability, a compelling product portfolio and responsive and timely availability, supported by a demonstrated willingness and capability to invest in the future. Our earnings performance is a result of healthy market demand, disciplined financial management, a competitive cost structure, and a committed team with a passion to succeed. We remain very enthusiastic about our opportunities in the fast-growing hard drive industry in the years ahead.”

For the nine-months ended Mar. 28, 2008, WD reported revenues of $6.1 billion and hard drive shipments of 98.1 million, for increases of 48 percent and 37 percent, respectively, over the comparable prior-year period revenue of $4.1 billion and unit shipments of 71.7 million. GAAP net income for the nine-months was $654 million, or $2.89 per share. Excluding $49 million of non-recurring charges for acquired in-process research and development and $60 million of non-recurring tax charges in the first quarter, non-GAAP net income for the current nine-month period was $763 million, or $3.38 per share. These current-period non-GAAP earnings reflect an approximately 117 percent increase over the prior-year nine-month net income and earnings per share amounts of $352 million and $1.56, respectively. There were no non-recurring items in the prior-year nine-month period and therefore there is no comparable non-GAAP measure for the prior year. 

Sourced From: Text 100 Public Relations Consultancy