These results include an operating profit from the Company’s hard drive group of $4.0 million, and losses from continuing new ventures of $7.3 million. The Company shipped 5.4 million units in the quarter. In the year earlier period, Western Digital reported revenue of $424.4 million and a loss from continuing operations of $37.2 million, or $.25 per share, on unit shipments of 5.1 million.
Also in the current period, the Company reported a gain from disposal of its discontinued Connex and SANavigator businesses of $24.5 million. Including this gain, the Company reported net earnings of $20.5 million, or $.11 per share. For the prior year, the Company reported a net loss, including extraordinary gains and the cumulative effect of a change in accounting principle, of $35.5 million, or $.24 per share. The prior year results have been restated to reflect the adoption of SEC Staff Accounting Bulletin No. 101 in the fourth quarter of fiscal 2001, and the reclassification of Connex and SANavigator results as discontinued operations.
Matt Massengill, president and chief executive officer, said: Our operating performance continues to reflect product cost efficiencies and the strength of our position with leading PC OEM and distribution customers. We have achieved this through leading quality and predictable supply of the technology they require in high volumes. In addition, we began to see the benefits of the emerging markets for rotating magnetic storage with initial shipments of WD drives to Microsoft for its new Xbox gaming system.
Our hard drive business has been profitable for four consecutive quarters, a period that many regard as one the most challenging in the industry’s history, said Massengill. We have modeled our business to weather these times and to be in good position to deliver solid returns as the market recovers in the future. Reflecting continued improvement of our balance sheet, cash grew to $200 million in the first quarter, which included $35 million from the sale of our Connex and SANavigator businesses. The hard drive business itself generated $14 million in cash from operations.
SOURCE: COMPANY PRESS RELEASE
