WESTERN DIGITAL REPORTS THIRD QUARTER RESULTS
WESTERN DIGITAL REPORTS THIRD QUARTER RESULTS IRVINE, Calif., April 28 /PRNewswire/ -- Western Digital Corp.
(NYSE: WDC) today reported a net loss of $18.6 million, or $.64 per share, on revenue of $229.3 million for the third fiscal quarter ended March 28, 1992, compared with a net loss of $10.8 million, or $.37 per share, on revenue of $247.1 million for the third quarter of fiscal 1991. Results for the comparable period in fiscal 1991 include revenue of $31.1 million from the local area network board business which was sold in the second quarter of fiscal 1992.
The fiscal 1992 third quarter loss from operations was $13.0 million -- a 57 percent improvement from the immediately preceding quarter when the company lost $30.5 million from operations and a 59 percent improvement from an operating loss of $32.1 million recorded two quarters ago. The net loss for the first nine months of fiscal 1992 totaled $76.9 million, or $2.64 per share, on revenue of $644.8 million, compared with a net loss of $107.6 million, or $3.67 per share, on revenue of $732.9 million for the corresponding period of the prior year. Results for the comparable period in 1991 included revenue of $84.6 million from the local area network board business. Roger W. Johnson, chairman, president and chief executive officer, stated, "While the third quarter results extend our losses, we are extremely pleased with the improvements in our operating performance -- particularly in our disk drives business, where we appear to be taking market share in the mid-capacity 3.5-inch market. "Equally important is the substantial progress made in continuing to meet the company's financing needs solely through internally generated cash. We ended the quarter with a cash balance of $33.9 million, generated in large part by a $23 million reduction in inventories to $126 million. We have also begun our scheduled repayment of bank debt in the last month with payments of $5 million. "Many factors are paving the way for continuing improvements as we proceed with our recovery plan. These include increasing sales volumes, orders and backlog; more stable pricing in our disk drives business; improved product mix; successful new graphics and drive product introductions; aggressive product and manufacturing cost reductions; and improved balance sheet management." Record Drives Backlog Johnson continued, "Not only is our disk drives backlog at an all- time high, it is composed of significantly higher margin business than in the last year. All of our 3.5-inch drives for desktop PCs are on allocation, and with our disk drive production planned to increase by more than 20 percent in the current quarter over Q3, we were booked 120 percent to our Q4 revenue plan at the beginning of April. We are currently receiving orders for fiscal 1993 Q1 delivery." Disk drive revenue, which accounted for 79 percent of revenue in Q3, increased 59 percent from year-ago levels and 24 percent from the preceding quarter. LSI and board business, which accounted for the remaining 21 percent of revenue, is down 64 percent from the year-ago period and 32 percent from the previous quarter. These declines reflect the sale of the company's local area network board business earlier this fiscal year and the integration of the storage controller function onto the disk drive. Among the third quarter's new product highlights were initial shipments of the one-inch high, 3.5-inch Caviar AC2200 disk drive for high performance desktop PCs, the WD90C31 Windows accelerator graphics chip and the Paradise Graphics Accelerator Card for Windows. 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. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) Three months ended Nine months ended Mar. 28, Mar. 30, Dec. 28, Mar. 28, Mar. 30 1992 1991 1991 1992 1991 Revenue $229,349 $247,114 $216,300 $644,794 $732,903 Cost of sales 203,373 204,335 205,624 596,601 604,139 Gross profit 25,976 42,779 10,676 48,193 128,764 Operating expenses: Research and development 19,286 21,192 19,035 58,885 64,642 Selling, general and administrative 19,731 27,634 22,140 64,982 92,949 Restructuring charges --- --- --- --- 66,040 Total 39,017 48,826 41,175 123,867 223,631 Loss from operations (13,041) (6,047) (30,499) (75,674) (94,867) Net interest expense 4,908 4,746 5,397 15,966 9,612 Gain on sale of LAN business --- --- 15,784 15,784 --- Los1,072 3,152 Net loss ($18,607) ($10,793) ($20,377) ($76,928) ($107,631) Primary loss per common and common equivalent share ($.64) ($.37) ($.70) ($2.64) ($3.67) Common and common equivalent shares 29,208 29,361 29,208 29,208 29,297 WESTERN DIGITAL CORP. Consolidated Statements of Financial Position Assets (In thousands, except share data) (Unaudited) March, 28, Dec. 28, 1992 1991 Current assets: Cash and cash equivalents $33,937 $34,935 Accounts receivable, net 132,856 128,999 Inventories 125,906 148,964 Prepaid expenses 9,763 2,939 Total current assets 302,462 315,837 Property and equipment, net 202,440 213,506 Intangible and other assets 40,260 40,397 Total assets $545,162 $569,740 Liabilities and Shareholders' Equity March 28, Dec. 28, 1992 1991 Current liabilities: Short-term bank borrowings and current installments of long-term debt $16,296 $11,061 Current installments of capital lease obligations 8,109 8,804 Accounts payable 97,957 99,949 Accrued expenses 48,768 46,783 Total current liabilities 171,130 166,597 Convertible subordinated debentures 59,000 59,000 Long-term debt 188,313 196,913 Capital lease obligations 4,501 6,405 Deferred income taxes 14,044 14,044 Total liabilities 436,988 442,959 Shareholders' equity: Preferred stock, $.10 par value --- --- Common stock, $.10 par value 2,921 2,921 Additional paid-in capital 157,075 157,075 Accumulated deficit (51,822) (33,215) Total shareholders' equity 108,174 126,781 Total liabilities and shareholders' equity $545,162 $569,740 -0- 4/28/92 /CONTACT: Robert J. Blair of Western Digital, 714-932-7834/ (WDC) CO: Western Digital ST: California IN: CPR SU: ERN
CH-EH -- LA017 -- 3540 04/28/92 08:06 EDT
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|Date:||Apr 28, 1992|
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