WD: Fiscal 1Q13 Financial Results

(in US$ million)	1Q12	1Q13
Revenues	2,694	4,035
*Growth*		50%
Net income (loss)	239	519

Western Digital Corp. reported revenue of $4.0 billion, hard-drive shipments of 62.5 million and net income of $519 million, or $2.06 per share for its first fiscal quarter ended Sept. 28, 2012.

On a non-GAAP basis, net income was $594 million or $2.36 per share.

In the year-ago quarter, the company reported revenue of $2.7 billion, net income of $239 million, or $1.01 per share, and shipped 57.8 million hard drives.

Non-GAAP net income in the year-ago quarter was $260 million, or $1.10 per share.

The company generated $936 million in cash from operations during the September quarter, ending with total cash and cash equivalents of $3.5 billion. During the quarter, the company utilized $218 million to buy back 5.2 million shares of common stock. On Sept.13, the company declared a $0.25 per common share dividend, which was paid Oct. 15.

"We are pleased to deliver another quarter of strong financial performance, continuing our track record of consistent execution," said John Coyne, CEO. "While the macroeconomic environment is dampening near term demand, we remain confident in the continued long-term growth in the creation, storage and management of digital content. Western Digital has never been better positioned to address this opportunity, with great people, deep technology, a broad product portfolio and strong customer and supplier relationships."

Comments

From 4Q12 to 1Q13

4Q12

1Q13

Q/Q
Growth

Revenues in $ million

4,754

4,035

-15%

Net income in $ million

745

519

-45%

HDDs shipped in million

71.0

62.5

-12%

earnings call transcript

Steve Milligan, president:

"All major PC OEMs have shown strong interest in our 5-millimeter and 7-millimeter hybrid designs as an alternative to solid-state and dual drive configurations.

Wolfgang Nickl, CFO:

"Excluding shipment to Toshiba under our divestiture agreement, we shifted total of 62.5 million hard drives into the market at an average selling price of $62.
"OEM sales represented 63% of revenue; distribution channel sales, 24%; and retail sales, 13%. Our gross margin for the quarter was 29.6%.
"I will now provide our guidance for the December quarter. We expect a total available market of approximately 140 million units; revenue in the range of $3.55 billion to $3.7 billion, reflecting the muted demand environment, a seasonal reduction in our gaming business and a planned reduction of our 3.5-inch contract manufacturing for Toshiba; gross margin of approximately 28%, excluding the amortization of HGST intangibles, which is within our new business model despite continued cost challenges stemming from the floods in Thailand last year."