WESTERN DIGITAL REPORTS $4 MILLION PROFIT Monday 29 October 2001 PDF Print $4 Million Profit announced. Generated from 5.4 Million Units shipped, and revenue of $441 Million. October 30, 2001 - Western Digital today reported revenue of $440.9 million and a loss from continuing operations of $4.0 million, or $.02 per share, for its first fiscal quarter ended September 28, 2001. These results include an operating profit from the Company's hard drive group of $4.0 million, and losses from continuing new ventures of $7.3 million. The Company shipped 5.4 million units in the quarter. In the year earlier period, Western Digital reported revenue of $424.4 million and a loss from continuing operations of $37.2 million, or $.25 per share, on unit shipments of 5.1 million. Also in the current period, the Company reported a gain from disposal of its discontinued Connex and SANavigator businesses of $24.5 million. Including this gain, the Company reported net earnings of $20.5 million, or $.11 per share. For the prior year, the Company reported a net loss, including extraordinary gains and the cumulative effect of a change in accounting principle, of $35.5 million, or $.24 per share. The prior year results have been restated to reflect the adoption of SEC Staff Accounting Bulletin No. 101 in the fourth quarter of fiscal 2001, and the reclassification of Connex and SANavigator results as discontinued operations. Matt Massengill, president and chief executive officer, said: "Our operating performance continues to reflect product cost efficiencies and the strength of our position with leading PC OEM and distribution customers. We have achieved this through leading quality and predictable supply of the technology they require in high volumes. In addition, we began to see the benefits of the emerging markets for rotating magnetic storage with initial shipments of WD drives to Microsoft for its new XBox gaming system. “Our hard drive business has been profitable for four consecutive quarters, a period that many regard as one the most challenging in the industry's history," said Massengill. "We have modelled our business to weather these times and to be in good position to deliver solid returns as the market recovers in the future. Reflecting continued improvement of our balance sheet; cash grew to $200 million in the first quarter, which included $35 million from the sale of our Connex and SANavigator businesses. The hard drive business itself generated $14 million in cash from operations." About Western Digital Western Digital, one of the storage industry's pioneers and long-time leaders, provides products and services for people and organisations that collect, manage and use digital information. The Company's core business produces reliable, high-performance hard drives that keep users' data close-at-hand and secure from loss. Applying its data storage core competencies to emerging markets, Western Digital's new ventures Cameo Technologies, Keen Personal Media and SageTree meet the increasing demand for innovative information management solutions arising from the proliferation of Internet and broadband services. 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 the expected performance of the Company's business 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; overall economic conditions; changes in product and customer mix; pricing trends; actions by competitors; the pace of development of new markets; 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 2001. We undertake no obligation to update or alter our forward-looking statements to reflect new information or events or for any other reason. Figures available upon demand. ### Western Digital is a registered trademark of Western Digital Technologies, Inc. Keen Personal Media and TV4me are trademarks of Keen Personal Media, Inc. SageTree is a registered trademark of SageTree, Inc. Cameo is a registered trademark of Cameo Technologies, Inc. All other brand and product names mentioned herein are the property of their respective companies. Editorial Contacts: Paul Calderwood Western Digital Europe Tel: 020 8763 2241 Fax: 020 8763 2245 Email: email@example.com Emma Smith Senior Account Executive Bluegrass Marketing Communications Tel: 01264 323141 Fax: 01264 323251 www.bluegrass.co.uk firstname.lastname@example.org This press release was distributed by ResponseSource Press Release Wire on behalf of Bluegrass Marketing Communications in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.