SAN JOSE, Calif.--(BUSINESS WIRE)--
Western Digital Corp. (NASDAQ: WDC) today updated its expectations for
the fourth fiscal quarter of 2017 and reiterated its non-GAAP earnings
forecast of approximately $12 per share for calendar year 2017.
The company now expects fourth quarter revenue of approximately $4.8
billion, non-GAAP gross margin of approximately 41% and non-GAAP
earnings per share of $2.85. This compares with the prior outlook
provided on April 27 of revenue of approximately $4.8 billion, non-GAAP
gross margin of approximately 40% and non-GAAP earnings per share in the
range of $2.55 to $2.65. The better-than-anticipated profitability is
being driven by continued good execution and strong demand for the
company's broad portfolio of storage products, particularly for
flash-based devices and solutions and the 10 terabyte helium capacity
hard drives. On July 27, after the close of NASDAQ trading, the company
will report its full results for the fourth fiscal quarter ending June
30, 2017.
The company's reiteration of its prior guidance to achieve non-GAAP
earnings per share of approximately $12 for the calendar year 2017 is
based on its current business outlook, leading product and technology
position, and capital structure.
Non-GAAP Financial Measures
This press release includes an update to the company's financial
guidance relating to non-GAAP gross margin and non-GAAP diluted earnings
per share ("EPS") for the fourth quarter of fiscal year 2017. Non-GAAP
gross margin is a non-GAAP measure defined as non-GAAP gross profit
divided by GAAP revenue. The company's non-GAAP gross margin and EPS
guidance exclude the amortization of acquired intangible assets and
stock-based compensation expense estimated to be approximately $291
million in gross profit, or 6% of gross margin, and $122 million in
operating expenses, totaling $413 million in net income, or $1.37 EPS
for the fourth quarter.
The timing and amount of additional charges the company excludes from
its non-GAAP financial measures, including employee termination, asset
impairment and other charges, charges to implement cost saving
initiatives, acquisition-related charges and, in the case of non-GAAP
EPS, related tax adjustments, are dependent on the timing of certain
actions and cannot be reasonably predicted. In addition, the company's
estimate for the amortization of acquired intangible assets is based on
preliminary allocations of the SanDisk purchase price and may be
adjusted as the company finalizes the valuation of these acquired
assets. Accordingly, reconciliations of non-GAAP gross margin and
non-GAAP EPS to the most directly comparable GAAP financial measures
(gross margin and diluted income per common share, respectively) are not
available without unreasonable effort.
These non-GAAP measures noted above are not in accordance with, or an
alternative for, measures prepared in accordance with GAAP and may be
different from non-GAAP measures used by other companies. The company
believes these non-GAAP measures provide useful information to investors
for measuring the company's earnings performance and comparing it
against prior periods. Specifically, the company believes these non-GAAP
measures provide useful information to both management and investors as
they exclude certain expenses, gains and losses that the company
believes are not indicative of its core operating results or because
they are consistent with the financial models and estimates published by
many analysts who follow the company and its peers. These non-GAAP
measures are some of the primary indicators management uses for
assessing the company's performance and planning and forecasting future
periods. These measures should be considered in addition to results
prepared in accordance with GAAP, but should not be considered a
substitute for, or superior to, GAAP results.
About Western Digital
Western Digital is an industry-leading provider of storage technologies
and solutions that enable people to create, leverage, experience and
preserve data. The company addresses ever-changing market needs by
providing a full portfolio of compelling, high-quality storage solutions
with customer-focused innovation, high efficiency, flexibility and
speed. Our products are marketed under the HGST, SanDisk and WD brands
to OEMs, distributors, resellers, cloud infrastructure providers and
consumers. Financial and investor information is available on the
company's Investor Relations website at investor.wdc.com.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements concerning the company's anticipated financial
results for its fourth fiscal quarter ending June 30, 2017 and calendar
year 2017. These forward-looking statements are based on management's
current expectations and are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed or
implied in the forward-looking statements. Other risks and uncertainties
that could cause actual results to differ materially from those
expressed or implied in the forward-looking statements include:
uncertainties with respect to the company's business ventures with
Toshiba; volatility in global economic conditions; business conditions
and growth in the storage ecosystem; impact of competitive products and
pricing; market acceptance and cost of commodity materials and
specialized product components; actions by competitors; unexpected
advances in competing technologies; our development and introduction of
products based on new technologies and expansion into new data storage
markets; risks associated with acquisitions, mergers and joint ventures;
difficulties or delays in manufacturing; and other risks and
uncertainties listed in the company's filings with the Securities and
Exchange Commission (the "SEC"), including the company's Form 10-Q filed
with the SEC on May 8, 2017, to which your attention is directed. You
should not place undue reliance on these forward-looking statements,
which speak only as of the date hereof, and the company undertakes no
obligation to update these forward-looking statements to reflect new
information or events.
Western Digital, WD and SanDisk are registered trademarks or trademarks
of Western Digital Corporation or its affiliates in the U.S. and/or
other countries. Other trademarks, registered trademarks, and/or service
marks, indicated or otherwise, are the property of their respective
owners. © 2017 Western Digital Corporation or its affiliates. All rights
reserved.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170626006175/en/
Western Digital Corp.
Media Contact:
Jim Pascoe, 408.717.6999
jim.pascoe@wdc.com
or
Investor
Contact:
Bob Blair, 949.672.7834
robert.blair@wdc.com
Source: Western Digital Corp.
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