UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Western Digital Corporation

(Exact Name of Registrant as Specified in its Charter)

Delaware (State or Other Jurisdiction of Incorporation or Organization)		001-08703 (Commission File Number)		33-0956711 (I.R.S. Employer Identification No.)

20511 Lake Forest Drive
Lake Forest, California		92630
(Address of Principal Executive Offices)		(Zip Code)

(949) 672-7000
(Registrant’s Telephone Number, Including Area Code)

Not applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 240.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 2.02 Results of Operations and Financial Condition.

     On October 19, 2010, Western Digital Corporation (“Western Digital”) announced financial results for the first fiscal quarter ended October 1, 2010. A copy of the press release making this announcement is attached hereto as Exhibit 99.1 and is incorporated herein by reference. A copy of Western Digital’s Investor Information Summary for the first quarter ended October 1, 2010 is attached hereto as Exhibit 99.2 and is incorporated herein by reference.

     In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1

Press Release issued by Western Digital Corporation on October 19, 2010 announcing financial results for the first fiscal quarter ended October 1, 2010.

99.2

First Quarter Fiscal Year 2011 Western Digital Corporation Investor Information Summary.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Exhibit 99.1

Company contacts:
Bob Blair
Investor Relations
949.672.7834
robert.blair@wdc.com

Steve Shattuck
Public Relations
949.672.7817
steve.shattuck@wdc.com

FOR IMMEDIATE RELEASE:

WD ANNOUNCES Q1 REVENUE OF $2.4 BILLION AND
NET INCOME OF $197 MILLION, OR $0.84 PER SHARE

Revenue Up 9 Percent, Hard Drive Shipments Up 15 Percent, From Year-ago Quarter,
$390 Million Cash Generated from Operations

LAKE FOREST, Calif. — Oct. 19, 2010 — Western Digital Corp. (NYSE: WDC) today reported revenue of $2.4 billion, hard-drive unit shipments of 50.7 million and net income of $197 million, or $0.84 per share for its first fiscal quarter ended Oct. 1, 2010. In the year-ago quarter, the company reported revenue of $2.2 billion, shipped 44.1 million hard drives, and reported net income and earnings per share of $288 million and $1.25, respectively.

     “In a quarter characterized by aggressive industry pricing, we remained solidly profitable, grew revenues and unit shipments year-over-year, and generated $390 million in cash from operations,” said John Coyne, president and chief executive officer. “Our low-cost business model and strong balance sheet enable us to weather the seasonality and cycles of the hard drive industry such as we experienced during the last two quarters.

     “We will continue to focus on quality, reliability, availability and profitable growth to maintain our industry leadership,” said Coyne. “We remain excited about the

WD Announces Q1 Revenue of $2.4 Billion and
Net Income of $197 Million, or $0.84 Per Share
Page 2

significant opportunities being created by the unabated growth in digital content in the home and workplace.”

     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. The company is publishing an expanded investor summary sheet today on the investor relations section of its website. After the conclusion of today’s webcasted conference call, the summary sheet will be updated to reflect the company’s guidance.

Audio Webcast:		www.westerndigital.com/investor
		Click on “Conference Calls”
Telephone Replay:		800-455-0163 (toll free)
		+1-203-369-3804 (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.

     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 website (www.westerndigital.com) to access a variety of financial and investor information.

WD Announces Q1 Revenue of $2.4 Billion and
Net Income of $197 Million, or $0.84 Per Share
Page 3

     This press release contains forward-looking statements concerning WD’s industry leadership and growth opportunities. 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 continued uncertainty and volatility in 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-K filed with the SEC on Aug. 13, 2010, 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, and the WD logo are registered trademarks of Western Digital Technologies, Inc. All other trademarks mentioned herein belong to their respective owners.

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)

		Oct. 1,				Jul. 2,
		2010				2010
ASSETS
Current assets:
Cash and cash equivalents		$	2,858			$	2,734
Accounts receivable, net			1,325				1,256
Inventories			561				560
Other			195				170
Total current assets			4,939				4,720
Property and equipment, net			2,245				2,159
Goodwill			150				146
Other intangible assets, net			83				88
Other assets			216				215
Total assets		$	7,633			$	7,328
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,703			$	1,507
Accrued expenses			227				281
Accrued warranty			131				129
Current portion of long-term debt			113				106
Total current liabilities			2,174				2,023
Long-term debt			262				294
Other liabilities			308				302
Total liabilities			2,744				2,619
Shareholders’ equity			4,889				4,709
Total liabilities and shareholders’ equity		$	7,633			$	7,328

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share amounts)
(unaudited)

		Three Months Ended
		Oct. 1,				Oct. 2,
		2010				2009
Revenue, net		$	2,396			$	2,208
Cost of revenue			1,959				1,694
Gross margin			437				514
Operating expenses:
Research and development			167				142
Selling, general and administrative			59				53
Total operating expenses			226				195
Operating income			211				319
Net interest and other			—				(2	)
Income before income taxes			211				317
Income tax provision			14				29
Net income		$	197			$	288
Income per common share:
Basic		$	0.86			$	1.28
Diluted		$	0.84			$	1.25
Weighted average shares outstanding:
Basic			230				225
Diluted			234				230

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

		Three Months Ended
		Oct. 1,				Oct. 2,
		2010				2009
Cash flows from operating activities
Net income		$	197			$	288
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization			150				121
Stock-based compensation			19				13
Changes in operating assets and liabilities			24				12
Net cash provided by operating activities			390				434
Cash flows from investing activities
Purchases of property and equipment			(200	)			(176	)
Net cash used in investing activities			(200	)			(176	)
Cash flows from financing activities
Employee stock plans, net			(2	)			14
Excess tax benefits from employee stock plans			11				9
Repurchases of common stock			(50	)			—
Repayment of long-term debt			(25	)			(19	)
Net cash provided by (used in) financing activities			(66	)			4
Net change in cash and cash equivalents			124				262
Cash and cash equivalents, beginning of period			2,734				1,794
Cash and cash equivalents, end of period		$	2,858			$	2,056