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 (Address of Principal Executive Offices) |
92630 (Zip Code) |
(949) 672-7000 (Registrants Telephone Number, Including Area Code) |
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. |
Item 9.01 | Financial Statements and Exhibits. |
99.1 | Press Release issued by Western Digital Corporation on January 21, 2010
announcing financial results for the second fiscal quarter ended January 1, 2010. |
||
99.2 | Second Quarter Fiscal Year 2010 Western Digital Corporation Investor
Information Summary. |
2
Western Digital Corporation (Registrant) |
||||
By: | /s/ Raymond M. Bukaty | |||
Date: January 21, 2010 | Raymond M. Bukaty | |||
Senior Vice President, Administration, General Counsel and Secretary |
||||
Company contacts: |
||
Steve Shattuck
|
Bob Blair | |
Public Relations
|
Investor Relations | |
949.672.7817
|
949.672.7834 | |
steve.shattuck@wdc.com
|
robert.blair@wdc.com |
Audio Webcast:
|
www.westerndigital.com/investor | |
Click on Conference Calls | ||
Telephone Replay:
|
800-925-0904 (toll-free) | |
+1-203-369-3093 (international) |
###
Jan. 1, | Jul. 3, | |||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 2,435 | $ | 1,794 | ||||
Accounts receivable, net |
1,365 | 926 | ||||||
Inventories |
453 | 376 | ||||||
Other |
163 | 134 | ||||||
Total current assets |
4,416 | 3,230 | ||||||
Property and equipment, net |
1,696 | 1,584 | ||||||
Goodwill |
139 | 139 | ||||||
Other intangible assets, net |
83 | 89 | ||||||
Other assets |
251 | 249 | ||||||
Total assets |
$ | 6,585 | $ | 5,291 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 1,507 | $ | 1,101 | ||||
Accrued expenses |
288 | 247 | ||||||
Accrued warranty |
118 | 95 | ||||||
Current portion of long-term debt |
94 | 82 | ||||||
Total current liabilities |
2,007 | 1,525 | ||||||
Long-term debt |
350 | 400 | ||||||
Other liabilities |
237 | 174 | ||||||
Total liabilities |
2,594 | 2,099 | ||||||
Shareholders equity |
3,991 | 3,192 | ||||||
Total liabilities and shareholders equity |
$ | 6,585 | $ | 5,291 | ||||
Three Months Ended | Six Months Ended | |||||||||||||||
Jan. 1, | Dec. 26, | Jan. 1, | Dec. 26, | |||||||||||||
2010 | 2008 | 2010 | 2008 | |||||||||||||
Revenue, net |
$ | 2,619 | $ | 1,823 | $ | 4,827 | $ | 3,933 | ||||||||
Cost of revenue |
1,932 | 1,533 | 3,626 | 3,219 | ||||||||||||
Gross margin |
687 | 290 | 1,201 | 714 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
154 | 119 | 296 | 252 | ||||||||||||
Selling, general and administrative |
60 | 42 | 113 | 99 | ||||||||||||
Restructuring |
| 113 | | 113 | ||||||||||||
Total operating expenses |
214 | 274 | 409 | 464 | ||||||||||||
Operating income |
473 | 16 | 792 | 250 | ||||||||||||
Net interest and other |
(2 | ) | (9 | ) | (4 | ) | (13 | ) | ||||||||
Income before income taxes |
471 | 7 | 788 | 237 | ||||||||||||
Income tax provision (benefit) |
42 | (7 | ) | 71 | 12 | |||||||||||
Net income |
$ | 429 | $ | 14 | $ | 717 | $ | 225 | ||||||||
Income per common share: |
||||||||||||||||
Basic |
$ | 1.89 | $ | 0.06 | $ | 3.17 | $ | 1.01 | ||||||||
Diluted |
$ | 1.85 | $ | 0.06 | $ | 3.10 | $ | 1.00 | ||||||||
Common shares used in computing per
share amounts: |
||||||||||||||||
Basic |
227 | 222 | 226 | 222 | ||||||||||||
Diluted |
232 | 224 | 231 | 225 | ||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Jan. 1, | Dec. 26, | Jan. 1, | Dec. 26, | |||||||||||||
2010 | 2008 | 2010 | 2008 | |||||||||||||
Cash flows from operating activities |
||||||||||||||||
Net income |
$ | 429 | $ | 14 | $ | 717 | $ | 225 | ||||||||
Adjustments to reconcile net income to net cash
provided by operations: |
||||||||||||||||
Depreciation and amortization |
126 | 122 | 247 | 239 | ||||||||||||
Stock-based compensation |
13 | 11 | 27 | 21 | ||||||||||||
Deferred income taxes |
(5 | ) | (7 | ) | (5 | ) | (7 | ) | ||||||||
Loss on investments |
| 6 | | 9 | ||||||||||||
Non-cash portion of restructuring |
| 80 | | 80 | ||||||||||||
Changes in operating assets and liabilities |
(6 | ) | 74 | 5 | 34 | |||||||||||
Net cash provided by operating activities |
557 | 300 | 991 | 601 | ||||||||||||
Cash flows from investing activities |
||||||||||||||||
Purchases of property and equipment |
(199 | ) | (140 | ) | (375 | ) | (302 | ) | ||||||||
Sales and maturities of investments |
3 | | 3 | 1 | ||||||||||||
Net cash used in investing activities |
(196 | ) | (140 | ) | (372 | ) | (301 | ) | ||||||||
Cash flows from financing activities |
||||||||||||||||
Issuance of stock under employee stock plans, net |
26 | 10 | 40 | 9 | ||||||||||||
Increase (decrease) in excess tax benefits from
employee stock plans |
11 | (4 | ) | 20 | 4 | |||||||||||
Repurchases of common stock |
| | | (36 | ) | |||||||||||
Repayment of long-term debt |
(19 | ) | (3 | ) | (38 | ) | (5 | ) | ||||||||
Net cash provided by (used in) financing
activities |
18 | 3 | 22 | (28 | ) | |||||||||||
Net increase in cash and cash equivalents |
379 | 163 | 641 | 272 | ||||||||||||
Cash and cash equivalents, beginning of period |
2,056 | 1,213 | 1,794 | 1,104 | ||||||||||||
Cash and cash equivalents, end of period |
$ | 2,435 | $ | 1,376 | $ | 2,435 | $ | 1,376 | ||||||||
Q2 FY09 | Q3 FY09 | Q4 FY09 | Q1 FY10 | Q2 FY10 | ||||||||||||||||
UNITS1 |
35.5 | 31.6 | 40.0 | 44.1 | 49.5 | |||||||||||||||
REVENUE |
$ | 1,823 | $ | 1,592 | $ | 1,928 | $ | 2,208 | $ | 2,619 | ||||||||||
AVERAGE SELLING PRICE1 |
$ | 51 | $ | 50 | $ | 48 | $ | 49 | $ | 52 | ||||||||||
GROSS MARGIN % |
15.9 | % | 15.9 | % | 19.2 | % | 23.3 | % | 26.2 | % | ||||||||||
REVENUE BY CHANNEL |
||||||||||||||||||||
OEM |
57 | % | 48 | % | 54 | % | 52 | % | 48 | % | ||||||||||
DISTRIBUTORS |
21 | % | 30 | % | 29 | % | 31 | % | 30 | % | ||||||||||
RETAIL |
22 | % | 22 | % | 17 | % | 17 | % | 22 | % | ||||||||||
REVENUE BY GEOGRAPHY |
||||||||||||||||||||
AMERICAS |
23 | % | 26 | % | 24 | % | 22 | % | 25 | % | ||||||||||
EUROPE |
29 | % | 28 | % | 22 | % | 22 | % | 25 | % | ||||||||||
ASIA |
48 | % | 46 | % | 54 | % | 56 | % | 50 | % | ||||||||||
REVENUE CONCENTRATION |
||||||||||||||||||||
10 LARGEST CUSTOMERS |
49 | % | 47 | % | 52 | % | 56 | % | 55 | % | ||||||||||
WORLDWIDE HEADCOUNT |
50,838 | 43,898 | 45,991 | 52,208 | 55,128 | |||||||||||||||
CASH RELATED INFORMATION |
||||||||||||||||||||
CASH FLOW FROM OPERATIONS |
$ | 300 | $ | 355 | $ | 349 | $ | 434 | $ | 557 | ||||||||||
CAPITAL EXPENDITURES |
$ | 140 | $ | 106 | $ | 111 | $ | 176 | $ | 199 | ||||||||||
DEPRECIATION AND AMORTIZATION |
$ | 122 | $ | 119 | $ | 122 | $ | 121 | $ | 126 | ||||||||||
DAYS SALES OUTSTANDING |
46 | 47 | 47 | 47 | 47 | |||||||||||||||
DAYS PAYABLES OUTSTANDING |
64 | 68 | 69 | 72 | 71 | |||||||||||||||
INVENTORY METRICS |
||||||||||||||||||||
RAW MATERIALS |
$ | 124 | $ | 104 | $ | 97 | $ | 96 | $ | 102 | ||||||||||
WORK IN PROCESS |
159 | 152 | 154 | 173 | 212 | |||||||||||||||
FINISHED GOODS |
163 | 129 | 125 | 126 | 139 | |||||||||||||||
TOTAL INVENTORY, NET |
$ | 446 | $ | 385 | $ | 376 | $ | 395 | $ | 453 | ||||||||||
INVENTORY TURNS |
14 | 14 | 15 | 17 | 17 |
1 | Based on sales of hard drive units only (excludes SSD, WD TV Media Player, and media/substrates) |