Western Digital: Fiscal 1Q17 Financial ResultsStrong demand for HDD and SSD, but recording losses
This is a Press Release edited by StorageNewsletter.com on 2016.10.28
|(in $ million)||1Q16||1Q17||Growth|
|Net income (loss)||283||(366)|
Western Digital Corp. reported revenue of $4.7 billion, operating income of $232 million and a net loss of $366 million, or $1.28 per share, for its first fiscal quarter ended Sept. 30, 2016.
The GAAP net loss for the period includes charges associated with the company's recent acquisitions and debt extinguishment charges related to its repricing and repayment of outstanding debt. Excluding these charges and other non-GAAP adjustments, first quarter non-GAAP operating income was $632 million and non-GAAP net income was $341 million, or $1.18 per share.
In the year-ago quarter, the company reported revenue of $3.4 billion, operating income of $322 million and net income of $283 million, or $1.21 per share. Non-GAAP operating income in the year-ago quarter was $405 million and non-GAAP net income was $366 million, or $1.56 per share.
The company generated $440 million in cash from operations during the first fiscal quarter of 2017, ending with total cash and cash equivalents of $4.1 billion. On Aug. 3, 2016, the company declared a cash dividend of $0.50 per share of its common stock, which was paid to shareholders on Oct.17, 2016.
"We are pleased with our performance in the September quarter, the first full quarter as an integrated company following the SanDisk acquisition in May," said Steve Milligan, CEO. "Demand for both HDD and flash-based products was strong across all customer categories, driven by cloud and mobile applications, as well as better-than-expected PC market trends. We are encouraged by the uniformly positive response to the new Western Digital platform from our broadened customer base.
"The Western Digital team is executing very well against our top business objectives, including the integrations of the legacy HGST, SanDisk and WD operations, and our transition to next-generation NAND technology. We are on track to achieve our synergy goals associated with these integrations and our transition to 3D NAND continues to progress as planned."