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		001-08703		33-0956711
(State or Other Jurisdiction of Incorporation or Organization)		(Commission File Number)		(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 22, 2009, Western Digital Corporation (“Western Digital”) announced financial results for the first fiscal quarter ended October 2, 2009. 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 fiscal quarter ended October 2, 2009 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 22, 2009 announcing financial results for the first fiscal quarter ended October 2, 2009.
	99.2		First Quarter Fiscal Year 2010 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.

				Western Digital Corporation
				(Registrant)
		By:		/s/ Raymond M. Bukaty
Date: October 22, 2009				Raymond M. Bukaty
				Senior Vice President, Administration,
				General Counsel and Secretary

Exhibit 99.1

Company contacts:
Steve Shattuck		Bob Blair
Public Relations		Investor Relations
949.672.7817		949.672.7834
steve.shattuck@wdc.com		robert.blair@wdc.com

FOR IMMEDIATE RELEASE:

WD® ANNOUNCES RECORD QUARTERLY REVENUE OF $2.2 BILLION WITH
NET INCOME OF $288 MILLION, OR $1.25 PER SHARE

Fiscal Q1 Revenue Up 5 Percent, Hard Drive Shipments Up 12 Percent,
Net Income Up 36 Percent from Year-ago Quarter

LAKE FOREST, Calif. — Oct. 22, 2009 — Western Digital Corp. (NYSE: WDC) today reported record revenue of $2.2 billion, record hard drive shipments of 44.1 million units and net income of $288 million, or $1.25 per share, for its first fiscal quarter ended Oct. 2, 2009. In the year-ago quarter, the company reported revenue of $2.1 billion, unit shipments of 39.4 million, and net income of $211 million.

     The company generated $434 million in cash from operations during the first quarter, ending with total cash and cash equivalents of $2.1 billion.

     “For the second consecutive quarter, demand for hard drives was stronger than expected as the positive industry conditions that materialized in the June quarter continued throughout the September quarter,” said John Coyne, president and chief executive officer. “We believe this demand is being driven primarily by consumers as a result of the growing social media phenomenon. This is creating demand in mobile and desktop PCs, branded products and enterprise storage. Hard drive inventories remain at historically low levels, reflecting industry discipline in managing supply and demand.

WD Announces Record Q1 Revenue of $2.2 Billion with
Net Income of $288 Million, or $1.25 Per Share
Page 2

     “In the September quarter, we leveraged our organization-wide agility to respond to unexpectedly robust demand and again generated strong financial results. As we enter the December quarter, demand remains strong and our product line-up, availability and cost profile position us to benefit from continuing growth opportunities.”

     Coyne noted that WD continues to realize tangible benefits from its investments in technology, products, processes and capacity over the last several years, enabled by the strongest balance sheet in the industry:

	•		The company continues to lead the industry in time-to-market volume shipments of leading capacity points in all segments of the ATA drive market with its WD Scorpio® Blue™ 1 TB, 750 GB and 640 GB hard drives utilizing 333 GB-per-platter technology. Additionally, the company leads the market with shipments of its 2 TB 3.5-inch hard drives to the near-line enterprise, desktop, CE and external storage markets.
	•		In branded products, WD continued to grow its business in fiscal Q1 even as it simultaneously refreshed its entire branded products line-up, positioning it well for continued growth entering the holiday season and in the year ahead. The company’s stylish, new offerings include smaller, smarter, more portable and secure My Passport™ and My Book® solutions that feature new WD SmartWare™ backup, synchronization and content visualization software, hardware encryption and an innovative e-label display.

WD Announces Record Q1 Revenue of $2.2 Billion with
Net Income of $288 Million, or $1.25 Per Share
Page 3

•

WD also expanded its line of media players with the introduction of the WD TV™ Mini Media Player, with support for RealVideo™ content playback, providing an affordable and convenient way for consumers to play their stored digital content, and the WD TV™ Live Media Player, featuring network connectivity and Full-HD 1080p resolution.

     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:

Audio Webcast:		www.westerndigital.com/investor
		Click on “Conference Calls”
Telephone Replay:		866-395-4175 (toll-free)
		+1-203-369-0475 (international)

WD Announces Record Q1 Revenue of $2.2 Billion with
Net Income of $288 Million, or $1.25 Per Share
Page 4

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

     This press release contains forward-looking statements concerning industry demand and WD’s prospects for growth. 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 recent 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

WD Announces Record Q1 Revenue of $2.2 Billion with
Net Income of $288 Million, or $1.25 Per Share
Page 5

with the SEC on August 14, 2009, 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, the WD logo, WD Scorpio and My Book are registered trademarks, and Blue, My Passport, WD SmartWare and WD TV are trademarks, of Western Digital Technologies, Inc. in the U.S. and other countries. All other trademarks mentioned herein belong to their respective owners. As used for storage capacity, one megabyte (MB) = one million bytes, one gigabyte (GB) = one billion bytes, and one terabyte (TB) = one trillion bytes. Total accessible capacity varies depending on operating environment.

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited)

		Oct. 2,				Jul. 3,
		2009				2009
ASSETS
Current assets:
Cash and cash equivalents		$	2,056			$	1,794
Accounts receivable, net			1,131				926
Inventories			395				376
Other			168				134
Total current assets			3,750				3,230
Property and equipment, net			1,625				1,584
Goodwill			139				139
Other intangible assets, net			86				89
Other assets			249				249
Total assets		$	5,849			$	5,291
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,342			$	1,101
Accrued expenses			218				247
Accrued warranty			101				95
Current portion of long-term debt			88				82
Total current liabilities			1,749				1,525
Long-term debt			375				400
Other liabilities			202				174
Total liabilities			2,326				2,099
Shareholders’ equity			3,523				3,192
Total liabilities and shareholders’ equity		$	5,849			$	5,291

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

		Three Months Ended
		Oct. 2,				Sept. 26,
		2009				2008
Revenue, net		$	2,208			$	2,109
Cost of revenue			1,694				1,685
Gross margin			514				424
Operating expenses:
Research and development			142				133
Selling, general and administrative			53				57
Total operating expenses			195				190
Operating income			319				234
Net interest and other			(2	)			(4	)
Income before income taxes			317				230
Income tax provision			29				19
Net income		$	288			$	211
Net income per common share:
Basic		$	1.28			$	0.95
Diluted		$	1.25			$	0.93
Common shares used in computing per share amounts:
Basic			225				222
Diluted			230				226

WESTERN DIGITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited)

		Three Months Ended
		Oct. 2,				Sept. 26,
		2009				2008
Cash flows from operating activities
Net income		$	288			$	211
Adjustments to reconcile net income to net cash provided by operations:
Depreciation and amortization			121				117
Stock-based compensation			13				10
Loss on investments			—				3
Changes in operating assets and liabilities			12				(40	)
Net cash provided by operating activities			434				301
Cash flows from investing activities
Purchases of property and equipment			(176	)			(162	)
Investments, net			—				1
Net cash used in investing activities			(176	)			(161	)
Cash flows from financing activities
Issuance of stock under employee stock plans, net			14				(1	)
Increase in excess tax benefits from employee stock plans			9				8
Repurchases of common stock			—				(36	)
Repayment of long-term debt			(19	)			(2	)
Net cash provided by (used in) financing activities			4				(31	)
Net increase in cash and cash equivalents			262				109
Cash and cash equivalents, beginning of period			1,794				1,104
Cash and cash equivalents, end of period		$	2,056			$	1,213

Exhibit 99.2

WESTERN DIGITAL CORPORATION
INVESTOR INFORMATION SUMMARY
Q1 FY2010 (All amounts in millions, except ASPs and headcount)

		Q1 FY09				Q2 FY09				Q3 FY09				Q4 FY09				Q1 FY10
UNITS1			39.4				35.5				31.6				40.0				44.1
REVENUE		$	2,109			$	1,823			$	1,592			$	1,928			$	2,208
AVERAGE SELLING PRICE1		$	53			$	51			$	50			$	48			$	49
GROSS MARGIN %			20.1	%			15.9	%			15.9	%			19.2	%			23.3	%
REVENUE BY CHANNEL
OEM			56	%			57	%			48	%			54	%			52	%
DISTRIBUTORS			26	%			21	%			30	%			29	%			31	%
RETAIL			18	%			22	%			22	%			17	%			17	%
REVENUE BY GEOGRAPHY
AMERICAS			23	%			23	%			26	%			24	%			22	%
EUROPE			29	%			29	%			28	%			22	%			22	%
ASIA			48	%			48	%			46	%			54	%			56	%
REVENUE CONCENTRATION
10 LARGEST CUSTOMERS			51	%			49	%			47	%			52	%			56	%
WORLDWIDE HEADCOUNT			51,409				50,838				43,898				45,991				52,208
CASH RELATED INFORMATION
CASH FLOW FROM OPERATIONS		$	301			$	300			$	355			$	349			$	434
CAPITAL EXPENDITURES		$	162			$	140			$	106			$	111			$	176
DEPRECIATION AND AMORTIZATION		$	117			$	122			$	119			$	122			$	121
DAYS SALES OUTSTANDING			47				46				47				47				47
DAYS PAYABLES OUTSTANDING			66				64				68				69				72
INVENTORY METRICS
RAW MATERIALS		$	129			$	124			$	104			$	97			$	96
WORK IN PROCESS			168				159				152				154				173
FINISHED GOODS			180				163				129				125				126
TOTAL INVENTORY, NET		$	477			$	446			$	385			$	376			$	395
INVENTORY TURNS			14				14				14				15				17