Summary
Western Digital Corporation (WDC) reported strong financial performance for the fiscal year ended June 27, 2008. The company experienced significant revenue growth, increasing by 48% to $8.1 billion, driven by a substantial increase in unit shipments and a strategic shift towards non-desktop markets, which now account for 56% of revenue. This diversification into consumer electronics, enterprise, mobile, and branded products has proven successful, with significant unit increases in mobile and DVR segments. The company also saw a notable improvement in profitability, with gross margin increasing to 21.5% from 16.5% in the prior year. This was attributed to a more favorable revenue mix, operational efficiencies, higher utilization, and the integration of recently acquired media operations. Operating income and net income also saw substantial increases, reflecting the company's operational improvements and strategic initiatives. The acquisition of Komag, Inc. in September 2007 for approximately $1 billion was a key event, enhancing production efficiencies and providing greater control over technology and competitive positioning in the hard drive industry. Looking ahead, WDC appears well-positioned to capitalize on the growing demand for data storage across various markets. Investments in research and development, particularly in advanced head and media technologies, alongside strategic expansions, underscore the company's commitment to maintaining its competitive edge. The company's financial health is further supported by robust cash flow and a solid liquidity position.
Financial Highlights
26 data points| Revenue | $8.07B |
| Cost of Revenue | $6.33B |
| Gross Profit | $1.74B |
| Operating Expenses | $733.00M |
| Operating Income | $1.01B |
| Net Income | $867.00M |
| EPS (Basic) | $3.92 |
| EPS (Diluted) | $3.84 |
| Shares Outstanding (Basic) | 221.00M |
| Shares Outstanding (Diluted) | 226.00M |
Key Highlights
- 1Revenue increased by 48% to $8.1 billion in fiscal year 2008, driven by a 37% increase in unit shipments to 133 million units.
- 2Non-desktop sources accounted for 56% of revenue, up from 43% in fiscal year 2007, indicating successful diversification strategies.
- 3Gross margin improved significantly to 21.5% from 16.5% in the prior year, reflecting operational efficiencies and a favorable product mix.
- 4Net income rose to $867 million ($3.84 per diluted share) in fiscal year 2008, compared to $564 million ($2.50 per diluted share) in fiscal year 2007.
- 5The company completed the acquisition of Komag, Incorporated for approximately $1 billion, strengthening its position in media production and overall manufacturing efficiency.
- 6Research and Development expenses increased by 52% to $464 million, signaling continued investment in new product development and technology.
- 7Cash, cash equivalents, and short-term investments increased to $1.1 billion, providing a strong liquidity position.
- 8The company continued its share repurchase program, with an additional $500 million authorized in April 2008.