Summary
Western Digital Corporation's (WDC) 2010 10-K report highlights a period of significant growth and strategic expansion. The company experienced a substantial 32% increase in net revenue, reaching $9.8 billion, driven by a 33% rise in hard drive unit shipments to 194 million units. This growth was particularly strong in the mobile PC market, with shipments of mobile drives increasing by 45% year-over-year. The company also saw a notable improvement in its gross margin, which rose to 24.4% from 17.9% in the previous year, attributed to higher volumes, lower costs, and a favorable product mix. Strategically, WDC continues to diversify its revenue streams, with 64% of its hard drive revenue in 2010 coming from non-desktop markets, including consumer electronics and enterprise applications. The company also made a key acquisition of Hoya Corporation's magnetic media sputtering operations to strengthen its vertical integration and meet growing demand. WDC's financial health appears robust, with a significant increase in cash and cash equivalents and a strong balance sheet, positioning it well for future investments and market opportunities. The company also successfully executed its strategy of expanding into new markets, including the traditional enterprise market, and improving its product portfolio.
Financial Highlights
51 data points| Revenue | $9.85B |
| Cost of Revenue | $7.45B |
| Gross Profit | $2.40B |
| SG&A Expenses | $265.00M |
| Operating Expenses | $876.00M |
| Operating Income | $1.52B |
| Net Income | $1.38B |
| EPS (Basic) | $6.06 |
| EPS (Diluted) | $5.93 |
| Shares Outstanding (Basic) | 228.00M |
| Shares Outstanding (Diluted) | 233.00M |
Key Highlights
- 1Net revenue surged by 32% to $9.8 billion in fiscal year 2010, driven by a 33% increase in hard drive unit shipments.
- 2Gross margin improved significantly, increasing to 24.4% of net revenue from 17.9% in the prior year.
- 3The company's diversification efforts are evident, with 64% of revenue now derived from non-desktop markets.
- 4WDC made a strategic acquisition of Hoya Corporation's magnetic media sputtering operations for $233 million to enhance its vertical integration.
- 5Operating income more than doubled, increasing to $1.5 billion from $519 million in the prior year, reflecting improved operational performance.
- 6Net income saw a substantial rise to $1.38 billion, or $5.93 per diluted share, compared to $470 million, or $2.08 per diluted share, in fiscal year 2009.
- 7The company ended fiscal year 2010 with a strong cash and cash equivalents balance of $2.73 billion, up from $1.79 billion at the end of fiscal year 2009.