Western Digital Announces Fourth Quarter, Fiscal Year End Results
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Western Digital Corp. today reported fourth quarter revenues of $456.0 million and a net loss of $9.0 million, or $.05 per share, before nonrecurring items. The results include an operating profit of approximately $2.8 million and unit shipments of 5.3 million by the Company's hard drive business. Including nonrecurring charges of $52.2 million, the total net loss for the fourth quarter was $61.2 million, or $.34 per share.
According to the company, the nonrecurring charges recorded in the fourth quarter result from adjustments to the carrying values of equity investments in and notes receivable from Komag Inc., and accrual of Komag contingent guarantees, all of which originally arose when Western Digital sold its disk media business to Komag in April 1999. The decision to take these charges was prompted by Komag's previous announcement that it did not pay its senior debt or the interest on its convertible bonds due June 30 and July 15, 2001, respectively.
In the year-ago period, Western Digital reported revenues of $473.9 million and a net loss before nonrecurring items of $26.3 million, or $.19 per share. Including nonrecurring benefits for tax and other accrual adjustments of $30.5 million, the Company reported net income of $4.2 million, or $.03 per share.