WESTERN DIGITAL REPORTS FIRST QUARTER EARNINGS
WESTERN DIGITAL REPORTS FIRST QUARTER EARNINGS IRVINE, Calif., Oct. 22 /PRNewswire/ -- Western Digital Corp.
(NYSE: WDC) today reported net income of $4.2 million, or $.14 per share, on revenue of $271.1 million for the first fiscal quarter ended Sept. 26, 1992, compared with a net loss of $37.9 million, or $1.30 per share, on revenue of $199.1 million in the first quarter last year. The results for the comparable period in fiscal 1992 included revenue of $30.4 million from the local area network board business which was sold in the second quarter of fiscal 1992.
In its fourth quarter ended June 30, 1992, the company reported net income of $4.1 million, or $.13 per share, on revenue of $293.5 million. The first quarter report represented Western Digital's second consecutive profitable quarter and its third consecutive quarter of improving gross margins. Gross margins reached 19 percent in Q1 vs. 7 percent one year ago. "As the comparative numbers indicate, Western Digital has made tremendous progress over the last year," said Roger W. Johnson, chairman and chief executive officer, of Western Digital. "Despite the anticipated lower quarter-to-quarter revenue due to seasonality, we were able to increase gross margins and profitability due to our focus on higher performance products, and enhanced customer base, manufacturing cost reductions, and control of operating expenses. We expect these trends to continue fueling the operations of the company in the quarters ahead. "We are very pleased with the consistent progress the company has made in effectively executing a wide range of improvement activities over the last year. Particularly gratifying is that our decision to maintain engineering investments during our restructuring while cutting deeply into other expenses has resulted in our bringing to market some world class products. The high level of acceptance of these products is a primary factor in our improved financial performance," Johnson concluded. Charles A. Haggerty, president and chief operating officer of Western Digital, stated, "Customer response to our new Caviar AC2340 disk drive has been especially strong, resulting in solid bookings for the second quarter. Our ability to initiate volume shipments of this product was an important factor in our Q1 profitability as we shipped 16,000 units in September. More than a dozen systems manufacturers have placed orders for the 2340, including AST Research, Dell Computer, Gateway 2000 and Tandy, and an equal number are in the final stages of qualifying the drive for their systems. "We are committed to making further progress in the quarters ahead through the same consistent focus on execution that has served us well in returning to profitability. Our drives business has made significant strides in the last several quarters. The greatest opportunity for leverage in the next several quarters will be in our Microcomputer Products business and all appropriate resources are being focused on that task." Headquartered in Irvine, Western Digital Corp. is a recognized leader in the design and manufacture of hard disk drives, integrated circuits and graphics controller board-level products. The company markets these products to leading systems manufacturers and selected resellers serving the personal computer industry, under the Caviar and Paradise brand names. The company was founded in 1970 and has long been noted for its storage controller expertise, end-market systems-level design knowledge and advanced semiconductor manufacturing capabilities. WESTERN DIGITAL CORP. Consolidated Statements of Operations (In thousands, except per share data) Three months ended Sept. 26, Sept. 28, June 30, 1992 1991 1992 Revenues $271,141 $199,145 $293,538 Costs and expenses: Cost of revenues 220,767 184,955 240,181 Research and development 22,152 23,213 21,606 Selling, general and administrative 19,683 23,111 23,030 Total costs and expenses 262,602 231,279 284,817 Operating income (loss) 8,539 (32,134) 8,721 Net interest expense 3,908 5,661 4,237 Income (loss) before income taxes 4,631 (37,795) 4,484 Provision for income taxes 463 149 416 Net income (loss) $4,168 ($37,944) $4,068 Earnings (loss) per common and common equivalent share $.14 ($1.30) $.13 Common and common equivalent shares used in computing per share amounts 30,348 29,208 30,162 WESTERN DIGITAL CORP. Consolidated Balance Sheets (In thousands, except per share data) Sept. 26, June 30, 1992 1992 ASSETS Current assets: Cash and cash equivalents $34,425 $33,815 Accounts receivable, net 186,295 152,591 Inventories 108,946 106,834 Prepaid expenses 8,936 9,053 Total current assets 318,602 302,293 Property and equipment, net 196,497 196,328 Intangible and other assets 35,148 33,922 Total assets $550,247 $532,543 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $109,815 $85,910 Accrued expenses 54,181 50,303 Current portion of long-term debt 194,607 27,161 Total current liabilities 358,603 163,374 Long-term debt, less current portion 61,145 242,951 Deferred income taxes 13,959 13,961 Commitments and contingent liabilities Shareholders' equity: Preferred stock, $.10 par value --- --- Common stock, $.10 par value 2,924 2,921 Additional paid-in capital 157,202 157,090 Accumulated deficit (43,586) (47,754) Total shareholders' equity 116,540 112,257 Total liabilities and shareholders' equity $550,247 $532,543 -0- 10/22/92 /CONTACT: Robert J. Blair of Western Digital, 714-932-7834/ (WDC) CO: Western Digital Corp. ST: California IN: CPR SU: ERN
JL-JB -- LA012 -- 3282 10/22/92 08:05 EDT
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|Date:||Oct 22, 1992|
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