SYS-CON MEDIA Authors: Pat Romanski, Elizabeth White, Yeshim Deniz, Glenn Rossman, Cynthia Dunlop

News Feed Item

Western Digital Announces Financial Results For Fourth Quarter And Fiscal Year 2014

IRVINE, Calif., July 30, 2014 /PRNewswire/ -- Western Digital® Corp. (NASDAQ: WDC) today reported financial results for the fourth quarter and fiscal year ended June 27, 2014. For the fourth quarter, the company reported revenue of $3.7 billion and net income of $317 million, or $1.32 per share. On a non-GAAP basis, net income was $445 million or $1.85 per share.1 In the year-ago quarter, the company reported revenue of $3.7 billion, a net loss of $265 million, or $1.12 per share. Non-GAAP net income in the year-ago quarter was $477 million, or $1.96 per share.2

The company generated $713 million in cash from operations during the June quarter, ending with total cash and cash equivalents of $4.8 billion. During the June quarter, the company utilized $272 million to repurchase 3.2 million shares of common stock. On May 14, the company declared a $0.40 per common-share dividend, which was paid on July 15.

For the fiscal year, the company achieved revenue of $15.1 billion and net income of $1.6 billion, or $6.68 per share, compared to fiscal year 2013 revenue of $15.4 billion and net income of $980 million, or $3.98 per share. On a non-GAAP basis, fiscal 2014 net income was $2.0 billion, or $8.10 per share, compared to fiscal 2013 net income of $2.1 billion or $8.53 per share.3  The company generated $2.8 billion in cash from operations during the fiscal year and it utilized $1.1 billion for dividends and share repurchases.

"We achieved strong financial results in the June quarter, with better-than-anticipated revenue, healthy gross margin performance and continued strong cash flow generation," said Steve Milligan, president and chief executive officer. "We did so by addressing continued robust demand in gaming and stronger-than-expected demand in notebook PCs, demonstrating our flexibility and capability in high-volume businesses. We also saw strength in our performance enterprise business.

"Longer term, we remain excited about Western Digital's strong strategic position at the center of the storage ecosystem, which continues to expand, evolve and transform. The creation of digital data continues unabated and the strategic value of that content is increasing. With our deep insight and experience, we will continue to play a vital role in unlocking the value of data with innovative and industry-leading storage devices and solutions."

The investment community conference call to discuss these results will be broadcast live over the Internet today at 2 p.m. Pacific/5 p.m. Eastern. The live and archived conference call webcast can be accessed online at investor.wdc.com. The telephone replay number is 1-800-324-4587 in the U.S. or +1-402-220-3854 for international callers.

About Western Digital

Western Digital Corp. (NASDAQ: WDC), Irvine, Calif., is a global provider of products and services that empower people to create, manage, experience and preserve digital content. Its subsidiaries design and manufacture storage devices, networking equipment and home entertainment products under the WD®, HGST and G-Technology brands. Visit the Investor section of the company's website (www.westerndigital.com) to access a variety of financial and investor information.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning our position in the storage ecosystem, the growth of digital data and our role in the creation of additional data. These forward-looking statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including the impact of continued uncertainty and volatility in global economic conditions; supply and demand conditions in the hard drive industry; uncertainties concerning the availability and cost of commodity materials and specialized product components; actions by competitors; unexpected advances in competing technologies; uncertainties related to the development and introduction of products based on new technologies and expansion into new data storage markets; business conditions and growth in the various hard drive markets; pricing trends and fluctuations in average selling prices; and other risks and uncertainties listed in the company's filings with the Securities and Exchange Commission (the "SEC"), including the company's recent Form 10-Q filed with the SEC on May 5, 2014, to which your attention is directed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speaks only as of the date hereof, and the company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

Western Digital, WD and the WD logo are registered trademarks in the U.S. and other countries. HGST trademarks are intended and authorized for use only in countries and jurisdictions in which HGST has obtained the rights to use, market and advertise the brand. Other marks may be mentioned herein that belong to other companies.

___________________________

1 Non-GAAP net income for the fourth quarter fiscal 2014 consists of GAAP net income of $317 million plus $47 million of amortization of intangibles related to the acquisitions of HGST, sTec, VeloBit and Virident, $13 million of charges related to litigation and $68 million of employee termination, asset impairment and other charges. Non-GAAP earnings per share of $1.85 for the fourth quarter is calculated by using the same 241 million diluted shares as is used for GAAP earnings per share. The tax effect of the aforementioned items was not material.

2 Non-GAAP net income for the fourth quarter fiscal 2013 consists of GAAP net loss of $265 million plus $681 million for charges related to an arbitration award, $46 million for amortization of intangibles related to the acquisition of HGST and $15 million for employee termination benefits and other unrelated charges. Non-GAAP earnings per share of $1.96 for the fourth quarter is calculated using 243 million diluted shares. The tax effect of the aforementioned items was not material.

3 Non-GAAP net income for fiscal 2014 consists of GAAP net income of $1.6 billion plus $195 million of amortization of intangibles related to the acquisitions of HGST, sTec, VeloBit and Virident, $64 million of charges related to litigation, $133 million of employee termination, asset impairment and other charges, $13 million of acquisition charges and $4 million of expense due to the write-off of debt issuance costs offset by a $65 million gain on an insurance recovery. Non-GAAP earnings per share of $8.10 for fiscal 2014 is calculated by using the same 242 million diluted shares as is used for GAAP earnings per share. Non-GAAP net income for fiscal 2013 consists of GAAP net income of $980 million plus $681 million for charges related to an arbitration award, $193 million for amortization of intangibles related to the acquisition of HGST, $138 million for employee termination benefits and other charges and a net $106 million for tax-related matters and other unrelated charges. Non-GAAP earnings per share of $8.53 for fiscal 2013 is calculated by using the same 246 million diluted shares as is used for GAAP earnings per share. The tax effect of the aforementioned items was not material.

 WESTERN DIGITAL CORPORATION 







CONDENSED CONSOLIDATED BALANCE SHEETS 







(in millions; unaudited)










June 27,


June 28,




2014


2013







ASSETS







Current assets:





Cash and cash equivalents

$     4,804


$     4,309


Short-term investments

284



Accounts receivable, net

1,989


1,793


Inventories

1,226


1,188


Other current assets

417


308



Total current assets

8,720


7,598

Property, plant and equipment, net

3,293


3,700

Goodwill 

2,559


1,954

Other intangible assets, net

454


605

Other non-current assets

473


179



Total assets

$   15,499


$   14,036













LIABILITIES AND SHAREHOLDERS' EQUITY







Current liabilities:





Accounts payable

$     1,971


$     1,990


Accrued arbitration award

758


706


Accrued expenses

412


480


Accrued compensation 

460


453


Accrued warranty

119


114


Current portion of long-term debt

125


230



Total current liabilities

3,845


3,973

Long-term debt

2,313


1,725

Other liabilities

499


445



Total liabilities

6,657


6,143

Total shareholders' equity

8,842


7,893



Total liabilities and shareholders' equity

$   15,499


$   14,036







WESTERN DIGITAL CORPORATION












CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)












     (in millions, except per share amounts; unaudited)































Three Months Ended


Years Ended





 June 27, 


 June 28, 


 June 27, 


 June 28, 





2014


2013


2014


2013












Revenue, net


$     3,651


$     3,728


$   15,130


$   15,351

Cost of revenue


2,622


2,678


10,770


10,988


Gross profit


1,029


1,050


4,360


4,363

Operating expenses:










Research and development


426


402


1,661


1,572


Selling, general and administrative


202


180


761


706


Charges related to arbitration award


13


681


52


681


Employee termination, asset impairment 










   and other charges


36


8


95


138



Total operating expenses


677


1,271


2,569


3,097

Operating income (loss)


352


(221)


1,791


1,266


Net interest and other


(5)


(9)


(39)


(44)

Income before (loss) income taxes


347


(230)


1,752


1,222

Income tax provision


30


35


135


242

Net income (loss)


$        317


$       (265)


$     1,617


$        980












Income (loss) per common share:










Basic


$       1.35


$      (1.12)


$       6.88


$       4.07


Diluted


$       1.32


$      (1.12)


$       6.68


$       3.98












Weighted average shares outstanding:










Basic


234


236


235


241


Diluted


241


236


242


246

 

WESTERN DIGITAL CORPORATION












CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS












     (in millions; unaudited)



























Three Months Ended


Years Ended





 June 27, 


 June 28, 


 June 27, 


 June 28, 





2014


2013


2014


2013












Cash flows from operating activities









Net income (loss)


$        317


$       (265)


$     1,617


$        980

Adjustments to reconcile net income to net cash 









  provided by operations:










Depreciation and amortization


308


302


1,244


1,233


Stock-based compensation


31


30


156


137


Deferred income taxes


53


(24)


(13)


35


Gain from insurance recovery




(65)



Loss on disposal of assets


7



40



Non-cash portion of employee termination, asset 











impairment and other charges


36


3


62


19


Other non-cash operating activities, net


5



9



Changes in operating assets and liabilities, net


(44)


638


(234)


715



Net cash provided by operating activities


713


684


2,816


3,119












Cash flows from investing activities









Purchases of property, plant and equipment


(161)


(136)


(628)


(952)

Acquisitions, net of cash acquired




(823)


(1)

Purchases of investments


(91)



(561)


(17)

Proceeds from sales of investments


72



72


Other investing activities, net




4




Net cash used in investing activities


(180)


(136)


(1,936)


(970)












Cash flows from financing activities









Employee stock plans, net


75


53


215


205

Repurchases of common stock


(272)


(235)


(816)


(842)

Dividends to shareholders


(70)


(60)


(259)


(181)

Proceeds from debt, net of issuance costs




2,992


 ― 

Repayment of debt


(31)


(57)


(2,517)


(230)



Net cash used in financing activities 


(298)


(299)


(385)


(1,048)

Net increase in cash and cash equivalents


235


249


495


1,101

Cash and cash equivalents, beginning of period


4,569


4,060


4,309


3,208

Cash and cash equivalents, end of period


$     4,804


$     4,309


$     4,804


$     4,309

WDCLOGO

SOURCE Western Digital Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic • Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff hap...
SYS-CON Events announced today that Utimaco will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Utimaco is a leading manufacturer of hardware based security solutions that provide the root of trust to keep cryptographic keys safe, secure critical digital infrastructures and protect high value data assets. Only Utimaco delivers a general-purpose hardware security module (HSM) as a customiz...
SYS-CON Events announced today that SOA Software, an API management leader, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. SOA Software is a leading provider of API Management and SOA Governance products that equip business to deliver APIs and SOA together to drive their company to meet its business strategy quickly and effectively. SOA Software’s technology helps businesses to accel...
Samsung VP Jacopo Lenzi, who headed the company's recent SmartThings acquisition under the auspices of Samsung's Open Innovaction Center (OIC), answered a few questions we had about the deal. This interview was in conjunction with our interview with SmartThings CEO Alex Hawkinson. IoT Journal: SmartThings was developed in an open, standards-agnostic platform, and will now be part of Samsung's Open Innovation Center. Can you elaborate on your commitment to keep the platform open? Jacopo Lenzi: S...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that ElasticBox is holding a Hackathon at DevOps Summit, November 6 from 12 pm -4 pm at the Santa Clara Convention Center in Santa Clara, CA. You can enter as an individual or team of up to 10 developers. A New Star Is Born Every Month! All completed ElasticBoxes will then be sent to a judging panel - 12 winners will be featured on the ElasticBox website in 2015. All entrants will receive five full enterprise licenses for one year + ElasticBox headphones + Elasti...
Once the decision has been made to move part or all of a workload to the cloud, a methodology for selecting that workload needs to be established. How do you move to the cloud? What does the discovery, assessment and planning look like? What workloads make sense? Which cloud model makes sense for each workload? What are the considerations for how to select the right cloud model? And how does that fit in with the overall IT tranformation? In his session at 15th Cloud Expo, John Hatem, head of V...
Cloud services are the newest tool in the arsenal of IT products in the market today. These cloud services integrate process and tools. In order to use these products effectively, organizations must have a good understanding of themselves and their business requirements. In his session at 15th Cloud Expo, Brian Lewis, Principal Architect at Verizon Cloud, will outline key areas of organizational focus, and how to formalize an actionable plan when migrating applications and internal services to...
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, will discuss how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP ...
Ixia develops amazing products so its customers can connect the world. Ixia helps its customers provide an always-on user experience through fast, secure delivery of dynamic connected technologies and services. Through actionable insights that accelerate and secure application and service delivery, Ixia's customers benefit from faster time to market, optimized application performance and higher-quality deployments.
SYS-CON Events announced today that Calm.io has been named “Bronze Sponsor” of DevOps Summit Silicon Valley, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Calm.io is a cloud orchestration platform for AWS, vCenter, OpenStack, or bare metal, that runs your CL tools puppet, Chef, shell, git, Jenkins, nagios, and will soon support New Relic and Docker. It can run hosted, or on premise and provides VM automation / expiry, self-service portals,...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, will focus on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud pla...
SYS-CON Events announced today that Aria Systems, the recurring revenue expert, has been named "Bronze Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Aria Systems helps leading businesses connect their customers with the products and services they love. Industry leaders like Pitney Bowes, Experian, AAA NCNU, VMware, HootSuite and many others choose Aria to power their recurring revenue bu...
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce t...
As Platform as a Service (PaaS) matures as a category, developers should have the ability to use the programming language of their choice to build applications and have access to a wide array of services. Bluemix is IBM's open cloud development platform that enables users to easily build cloud-based, creative mobile and web applications without having to spend large amounts of time and resources on configuring infrastructure and multiple software licenses. In this track, you will learn about the...
Blue Box has closed a $10 million Series B financing. The round was led by a strategic investor and included participation from prior investors including Voyager Capital and Founders Collective, as well as the Blue Box executive team. This round follows a $4.3 million Series A closed in December of 2012 and led by Voyager Capital. In May of this year, the company announced general availability of its private cloud as a service offering, Blue Box Cloud. Since that release, the company has dem...
SYS-CON Events announced today that Verizon has been named "Gold Sponsor" of SYS-CON's 15th International Cloud Expo®, which will take place on November 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Verizon Enterprise Solutions creates global connections that generate growth, drive business innovation and move society forward. With industry-specific solutions and a full range of global wholesale offerings provided over the company's secure mobility, cloud, strategic network...
SimpleECM is the only platform to offer a powerful combination of enterprise content management (ECM) services, capture solutions, and third-party business services providing simplified integrations and workflow development for solution providers. SimpleECM is opening the market to businesses of all sizes by reinventing the delivery of ECM services. Our APIs make the development of ECM services simple with the use of familiar technologies for a frictionless integration directly into web applicat...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic...
Cloudwick, the leading big data DevOps service and solution provider to the Fortune 1000, announced Big Loop, its multi-vendor operations platform. Cloudwick Big Loop creates greater collaboration between Fortune 1000 IT staff, developers and their database management systems as well as big data vendors. This allows customers to comprehensively manage and oversee their entire infrastructure, which leads to more successful production cluster operations, and scale-out. Cloudwick Big Loop supports ...