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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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Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Publication:PR Newswire
Date:Nov 7, 1991
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