WESTERN DIGITAL REPORTS FIRST QUARTER RESULTS
WESTERN DIGITAL REPORTS FIRST QUARTER RESULTS IRVINE, Calif., Nov. 7 /PRNewswire/ -- Western Digital Corp.
(NYSE: WDC) today reported a loss of $37.9 million, or $1.30 per share, on revenue of $199.1 million for its first fiscal quarter ended Sept. 28, 1991, compared with a profit of $1.7 million, or $.06 per share, on revenue of $255.8 million in the first quarter last year.
Roger W. Johnson, chairman, president and chief executive officer of Western Digital, said, "In the first quarter, we were still behind the power curve in getting volume shipments of some of our newer products to market. This transition in combination with across-the- board pricing pressures, soft overall industry demand, and customer uncertainty regarding the company's financial restructuring served to depress revenue and magnify the loss from operations during what is typically our seasonally low quarter. "We are pleased to have finally completed our financial restructuring involving $205.8 million in debt obligations and receivables facilities. It has been a long 11 months working with our banks, and we are grateful for the solid support we have received from them during that period. Completing these arrangements will free up significant management resources to help address operational issues and help restore confidence in our financial stability. "With margins under pressure in the current environment, our primary focus will continue to be on improving gross margins and generating cash. This involves extensive efforts to improve production processes and reduce product costs, increasingly aggressive inventory management and tight control of capital expenditures. We also continue to attack SG& A expenses which, on a year-to-year comparison basis, already have been reduced by about 25 percent. "Although industry visibility is somewhat limited, we have recently seen some encouraging signs, including some stabilization in pricing and firming of demand in certain product segments, most notably with our higher capacity 3.5-inch Caviar and Piranha disk drives. Our new 3.5-inch drive and LSI products have been very well received on the basis of their quality and performance by the leading personal computer manufacturers. With this strong new product lineup and our restructuring activities for the most part behind us, Western Digital should be well positioned to compete successfully when the industry and economy begin to stabilize." Western Digital Corp,. headquartered in Irvine, is a multinational company that designs and manufactures semiconductor, subsystem and intelligent drive products for OEMs and resellers which serve the microcomputer industry. The company's storage, video and systems logic products are designed to work in concert, and the resulting Interarchitecture products yield increased system functionality and performance. WESTERN DIGITAL CORP. Condensed Consolidated Results of Operations (in thousands, except per share data) Three months ended Sept 28, Sept 29 1991 1990 Revenue $199,145 $255,819 Gross profit 11,541 57,374 Operating expenses 43,675 52,966 Operating income (loss) ($32,134) $4,408 Net income (loss) ($37,944) $1,654 Primary earnings (loss) per common and common equivalent share ($1.30) $.06 WESTERN DIGITAL CORP. Condensed Consolidated Financial Position Assets (In thousands) Sept 28, June 30, 1991 1991 Cash $37,675 $36,061 Accounts receivable 90,263 140,481 Inventories 168,547 174,469 Prepaid expenses 2,202 2,669 Total current assets 298,687 353,681 Property and equipment, net 230,195 228,098 Other assets 36,851 38,662 Total assets $565,733 $620,440 Liabilities and Shareholders' Equity Sept 28, June 30, 1991 1991 Current portion of long- term debt and capital leases $16,522 $13,937 Accounts payable and accrued expenses $159,734 $172,424 Total current liabilities 176,256 186,361 Long-term debt and capital leases 169,275 175,933 Convertible subordinated debentures 59,000 59,000 Other liabilities 14,044 14,044 Shareholders' equity 147,158 185,102 Total liabilities and shareholders' equity $565,733 $620,440 -0- 11/7/91 /CONTACT: Robert J. Blair of Western Digital Corp., 714-932-7834/ (WDC) CO: Western Digital Corp. ST: California IN: CPR SU: ERN EH-SE -- LA009 -- 2041 11/07/91 08:48 EST
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|Date:||Nov 7, 1991|
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