COMPANY PRESS RELEASE: Western Digital Corp has reported revenue of $575 million on unit shipments of approximately 7.7 million, and net income before non-recurring items of $9.2 million, or $.05 per share for its second fiscal quarter ending December 28, 2001.
The Company’s hard drive business generated $15.3 million of operating income in the quarter, compared with $4.0 million in the first fiscal quarter. Revenue and unit volume levels grew 30% and 43%, respectively, on a sequential basis.
In the year-ago period, the Company reported revenue of $562 million on unit shipments of approximately 6.1 million, and a net loss before non-recurring items of $7.0 million, or $.04 per share. For the current period, non-recurring items included $3.4 million of net investment gains. For the year-ago period, non-recurring items consisted of $10.6 million of extraordinary gains from bond redemptions. Including these non-recurring items, the Company reported net income of $12.6 million, or $.07 per share, for the current period, and $3.6 million, or $.02 per share, for the year-ago period.
Matt Massengill, Western Digital chairman and chief executive officer, said: The second quarter performance marks the fifth consecutive quarter of both profitability and consistently competitive gross margin performance by our hard drive business. We are beginning to meet our goal of growing the business profitably. Our focus, execution and broadened product portfolio enabled us to meet growing demand from all of our PC channels in the December quarter, as well as from the gaming console market for EIDE-class hard drives.
Separately, the Company indicated that its previously-announced transaction with Fujitsu (Thailand) Company Ltd. to purchase a 155,000-square foot hard drive and head stack assembly building near Bangkok, Thailand has been completed. It will be operational in the March quarter.