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HDD Business Generates $15.3 Million Operating Income on 43% Sequential Unit
Growth




Western Digital Corp. (NYSE: WDC) today reported revenue of $575 million on
unit shipments of approximately 7.7 million, and net income before
non-recurring items of $9.2 million, or $.05 per share for its second fiscal
quarter ending December 28, 2001. The Company’s hard drive business
generated $15.3 million of operating income in the quarter, compared with
$4.0 million in the first fiscal quarter. Revenue and unit volume levels
grew 30% and 43%, respectively, on a sequential basis.
In the year-ago period, the Company reported revenue of $562 million on unit
shipments of approximately 6.1 million, and a net loss before non-recurring
items of $7.0 million, or $.04 per share. For the current period,
non-recurring items included $3.4 million of net investment gains. For the
year-ago period, non-recurring items consisted of $10.6 million of
extraordinary gains from bond redemptions. Including these non-recurring
items, the Company reported net income of $12.6 million, or $.07 per share,
for the current period, and $3.6 million, or $.02 per share, for the
year-ago period.




Matt Massengill, Western Digital chairman and chief executive officer, said:
“The second quarter performance marks the fifth consecutive quarter of both
profitability and consistently competitive gross margin performance by our
hard drive business. We are beginning to meet our goal of growing the
business profitably. Our focus, execution and broadened product portfolio
enabled us to meet growing demand from all of our PC channels in the
December quarter, as well as from the gaming console market for EIDE-class
hard drives.”





Separately, the Company indicated that its previously-announced transaction
with Fujitsu (Thailand) Company Ltd. to purchase a 155,000-square foot hard
drive and head stack assembly building near Bangkok, Thailand has been
completed. It will be operational in the March quarter.





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’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 ( http://www.westerndigital.com) to access a
variety of financial and investor information.








This release contains forward-looking statements, including statements
relating to profitable business growth goals and expected operational status
of the Thailand building. 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-Q for the first quarter of 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 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



-release ends-





Editorial Contacts:





Paul Calderwood
Western Digital Europe
Tel: 020 8763 2241
Fax: 020 8763 2245
Email: kingswoodmktg@btinternet.com


Jeff Lea
Bluegrass Communications
Tel: 01264 323141
Fax: 01264 323251
Email: jeff.lea@bluegrass.co.uk




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.