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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 24, 2003
WESTERN DIGITAL CORPORATION
| Delaware (State or Other Jurisdiction of Incorporation) |
1-08703 (Commission File Number) |
33-0956711 (IRS Employer Identification No.) |
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|
20511 Lake Forest Drive Lake Forest, California (Address of Principal Executive Offices) |
92630 (Zip Code) |
Registrant’s telephone number, including area code: (949) 672-7000
Not Applicable
| Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. | ||||||||
| Item 9. Disclosure of Results of Operations and Financial Condition | ||||||||
| SIGNATURES | ||||||||
| INDEX TO EXHIBITS | ||||||||
| EXHIBIT 99.1 | ||||||||
| EXHIBIT 99.2 | ||||||||
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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
| Exhibit No. | Description | |
| 99.1 | Press Release issued by Western Digital Corporation on April 24, 2003 announcing third fiscal quarter financial results. | |
| 99.2 | Third Quarter Fiscal Year 2003 Western Digital Corporation Investor Information Summary. |
Item 9. Disclosure of Results of Operations and Financial Condition
The information included in this Item 9 is intended to be furnished under “Item 12. Disclosure of Results of Operations and Financial Condition” and is included under this Item 9 in accordance with SEC Release No. 33-8216.
On April 24, 2003, Western Digital Corporation announced financial results for the quarter ended March 28, 2003. A copy of the press release making this announcement is attached hereto as Exhibit 99.1 and incorporated herein by reference. The press release shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act of 1934.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WESTERN DIGITAL CORPORATION | ||||
| By: | /s/ Raymond M. Bukaty | |||
Raymond M. Bukaty Vice President, General Counsel and Secretary |
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| Dated: April 24, 2003 | ||||
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INDEX TO EXHIBITS
| Exhibit | Description | |
| 99.1 | Press Release issued by Western Digital Corporation on April 24, 2003, announcing third fiscal quarter financial results. | |
| 99.2 | Third Quarter Fiscal Year 2003 Western Digital Corporation Investor Information Summary |
Exhibit 99.1 Company contacts: Bob Blair Western Digital Investor Relations 949.672.7834 robert.blair@wdc.com Steve Shattuck Western Digital Public Relations 949.672.7817 steve.shattuck@wdc.com FOR IMMEDIATE RELEASE: WESTERN DIGITAL REPORTS EPS OF $.26, REVENUE OF $706 MILLION, 10.3 MILLION UNITS SHIPPED FOR FISCAL Q3; YEAR-OVER-YEAR REVENUE GROWTH OF 19%, NET INCOME RISES 184% LAKE FOREST, Calif. - Apr. 24, 2003 - Western Digital Corp. (NYSE: WDC) today reported revenue of $706 million on unit shipments of approximately 10.3 million, and net income of $54.5 million, or $.26 per share for its third fiscal quarter ending March 28, 2003. These results represent year-over-year revenue growth of 19 percent and net income growth of 184 percent on a 27 percent increase in unit shipments. A year ago in the March 2002 quarter, Western Digital produced revenue of $595 million, shipped 8.1 million units and earned $19.2 million, or $.10 per share. The year-ago results included tax benefits and investment gains totaling $4.0 million. Average selling prices were $68 in the March 2003 quarter, down $5 from the unusually strong December quarter, but essentially flat with both the September and June quarters of calendar 2002. The gross margin and operating margin in the March 2003 quarter were 17.3 percent and 8.1 percent, respectively.
Western Digital Reports EPS of $.26, Revenue of $706 Million, 10.3 Million Units Shipped For Fiscal Q3; Year-Over-Year Revenue Growth Of 19%, Net Income Rises 184% Page 2 The Company generated $99 million in cash flow from operations in the March quarter, reflecting balanced linearity of shipments and solid asset management. The cash balance at quarter's end totaled $347 million, exceeding the cash position at the end of December, despite a cash payment of $74 million in the quarter, which retired substantially all of the Company's remaining convertible debt. "These results demonstrate healthy industry demand for hard drives and continued strong execution by the Western Digital team in achieving customer satisfaction and maximizing profitability through excellent quality, predictable supply, and operational excellence," said Matt Massengill, chairman and chief executive officer of Western Digital. "With this focus, we were able to significantly improve our position with leading PC OEM customers in the March quarter." On the new product front in the third quarter, Massengill noted that Western Digital "continued to meet the industry's demand for high-capacity, high-performance desktop hard drives with shipments of our new WD Caviar(R) 7200 RPM 250 GB drive based on 80 GB-per-platter technology and we successfully launched the WD Raptor(TM) hard drive in the enterprise market -- the industry's first 10,000 RPM Serial ATA drive." The Company's investment community conference call to discuss its third quarter results and June quarter outlook will be broadcast live over the Internet today at 2 p.m. PDT/5 p.m. EDT. The live and archive audio webcast and Investor Information Summary will be available in the Conference Calls section of the Western Digital Web site at http://www.westerndigital.com/invest. A telephone replay at 402.530.7904 will be available through May 5, 2003.
Western Digital Reports EPS of $.26, Revenue of $706 Million, 10.3 Million Units Shipped For Fiscal Q3; Year-Over-Year Revenue Growth Of 19%, Net Income Rises 184% Page 3 ABOUT WESTERN DIGITAL Western Digital, 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 produces reliable, high-performance hard drives that keep users' data close-at-hand and secure from loss. Western Digital was founded in 1970. The Company's storage products are marketed to leading systems manufacturers and selected resellers under the Western Digital brand name. Visit the Investor section of the Company's Web site (www.westerndigital.com) to access a variety of financial and investor information. This release contains forward-looking statements, including statements relating to our earnings leverage and the financial efficiency of our business and operating model. The forward-looking statements are based on current management expectations, and actual results may differ materially as a result of several factors, including: levels of operating expense and product cost; supply and demand conditions in the hard drive industry; uncertainties related to the development and introduction of products based on new technologies; changes in product and customer mix; pricing trends; actions by competitors; successful entry into new markets by the Company; and other factors discussed in our recent SEC filings, including but not limited to our Form 10-K for fiscal 2002. We undertake no obligation to update or alter our forward-looking statements to reflect new information or events or for any other reason. ### Western Digital, WD Caviar and the Western Digital logo are registered trademarks and WD Raptor is a trademark of Western Digital Technologies, Inc.
WESTERN DIGITAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) THREE MONTHS ENDED NINE MONTHS ENDED ---------------------------------------- ---------------------------- MAR. 28, DEC. 27, MAR. 29, MAR. 28, MAR. 29, 2003 2002 2002 2003 2002 ---------- ---------- ---------- ------------ ----------- Revenue, net ..................................... $ 705,839 $ 749,490 $ 594,867 $ 2,038,238 $1,610,480 Cost of revenue .................................. 583,819 605,409 513,849 1,688,494 1,402,897 --------- --------- --------- ----------- ---------- Gross margin ..................................... 122,020 144,081 81,018 349,744 207,583 --------- --------- --------- ----------- ---------- Operating expenses: Research and development ................... 34,726 34,410 31,443 101,050 89,500 Selling, general and administrative ........ 30,205 33,628 28,774 90,277 84,636 --------- --------- --------- ----------- ---------- Total operating expenses .............. 64,931 68,038 60,217 191,327 174,136 --------- --------- --------- ----------- ---------- Operating income ................................. 57,089 76,043 20,801 158,417 33,447 Net interest and other (expense) income .......... (316) (780) (334) (2,365) 1,908 --------- --------- --------- ----------- ---------- Income from continuing operations before income taxes ........................ 56,773 75,263 20,467 156,052 35,355 Income tax (expense) benefit ..................... (2,271) (2,223) 1,624 (6,295) 1,624 --------- --------- --------- ----------- ---------- Income from continuing operations ................ 54,502 73,040 22,091 149,757 36,979 Discontinued operations .......................... -- 1,320 (2,893) 1,320 15,331 --------- --------- --------- ----------- ---------- Net income ....................................... $ 54,502 $ 74,360 $ 19,198 $ 151,077 $ 52,310 ========= ========= ========= =========== ========== Diluted income per common share: Income from continuing operations ................ $ .26 $ .36 $ .11 $ .74 $ .19 Discontinued operations .......................... -- .00 (.01) .00 .08 --------- --------- --------- ----------- ---------- $ .26 $ .36 $ .10 $ .74 $ .27 ========= ========= ========= =========== ========== Common shares used in computing per share amounts: Diluted .......................................... 207,724 204,123 198,355 202,890 192,372 ========= ========= ========= =========== ==========
WESTERN DIGITAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (UNAUDITED) MAR. 28, JUN. 28, 2003 2002 --------- --------- ASSETS Current assets: Cash and cash equivalents .......................... $ 347,060 $ 223,728 Accounts receivable, net ........................... 195,738 218,832 Inventories ........................................ 110,663 73,395 Other .............................................. 13,374 11,554 --------- --------- Total current assets .......................... 666,835 527,509 Property and equipment, net .............................. 117,162 107,520 Other, net ............................................... 543 1,651 --------- --------- Total assets .................................. $ 784,540 $ 636,680 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable ................................... $ 348,332 $ 302,998 Accrued expenses ................................... 132,108 103,474 Convertible debentures ............................. -- 86,204 --------- --------- Total current liabilities ..................... 480,440 492,676 Other .................................................... 28,016 41,142 Shareholders' equity: Common stock ....................................... 1,983 1,954 Additional paid-in capital ......................... 639,316 617,200 Accumulated deficit ................................ (365,215) (516,292) --------- --------- Total shareholders' equity .................... 276,084 102,862 --------- --------- Total liabilities and shareholders' equity .... $ 784,540 $ 636,680 ========= =========
. . . EXHIBIT 99.2 WESTERN DIGITAL CORP INVESTOR INFORMATION SUMMARY Q3 FY2003 (ALL $ AMOUNTS IN MILLIONS) - --------------------------------------------------------------------------------------------- Q3 FY02 Q4 FY02 Q1 FY03 Q2 FY03 Q3 FY03 - --------------------------------------------------------------------------------------------- REVENUE: $ 595 $ 541 $ 583 $ 749 $ 706 - --------------------------------------------------------------------------------------------- REVENUE BY CHANNEL : OEM 57% 48% 52% 53% 53% DISTRIBUTORS 36% 45% 41% 39% 39% RETAIL 7% 7% 7% 8% 8% - --------------------------------------------------------------------------------------------- REVENUE BY GEOGRAPHY: AMERICAS 52% 54% 48% 50% 48% EUROPE 33% 29% 33% 31% 31% ASIA 15% 17% 19% 19% 21% - --------------------------------------------------------------------------------------------- REVENUE CONCENTRATION : 10 LARGEST CUSTOMERS 60% 57% 55% 58% 55% - --------------------------------------------------------------------------------------------- HARD DRIVES UNITS (MILLIONS): 8.1 8.0 8.6 10.3 10.3 - --------------------------------------------------------------------------------------------- WORLDWIDE HEADCOUNT : 10,114 9,550 10,003 10,829 10,958 - --------------------------------------------------------------------------------------------- ASSET MANAGEMENT DSOs--AVERAGE 28 37 36 30 25 - --------------------------------------------------------------------------------------------- INVENTORY DETAIL : TOTAL RAW $ 13 $ 9 $ 7 $ 14 $ 13 WIP $ 14 $ 10 $ 17 $ 19 $ 17 FINISHED GOODS $ 68 $ 55 $ 68 $ 73 $ 81 - --------------------------------------------------------------------------------------------- TOTAL INVENTORY, NET $ 95 $ 73 $ 92 $ 106 $ 111 - --------------------------------------------------------------------------------------------- INVENTORY TURNS 22 26 22 23 21 =============================================================================================