$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
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
Western Digital Europe
Tel: 020 8763 2241
Fax: 020 8763 2245
Senior Account Executive
Bluegrass Marketing Communications
Tel: 01264 323141
Fax: 01264 323251
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