Western Digital Corp. (NYSE:WDC) today reported revenue of $2.2 billion, comprised of $2.084 billion of hard drive revenue and $120 million of revenue from media and substrate sales for the second fiscal quarter ending Dec. 28, 2007. Hard drive revenue grew by 46 percent over the prior-year comparative period on shipments of approximately 34.2 million units, a year-over-year increase of 40 percent in unit volume. Net income was $305 million, or $1.35 per share. EPS grew 137 percent over the prior year. In the year-ago quarter, the company reported revenue of $1.4 billion, unit shipments of 24.5 million and net income of $128 million, or $.57 per share.

Fifty-four percent of Q2 hard drive revenue was derived from non-desktop PC sources, including hard drives for notebook PCs, consumer electronics and enterprise applications, and WD branded product retail sales. This compares with a mix in the year-ago quarter of 42 percent.

The company shipped 8.7 million 2.5-inch mobile drives and 4.1 million 3.5-inch units for the PVR/DVR market, compared with 2.7 million units in each of these markets a year ago. Branded products accounted for 18 percent of hard drive revenue, continuing to demonstrate the value of WD’s global brand.

From a balance sheet perspective, the company generated $519 million in cash from operations during the December quarter, ending with total cash, cash equivalents and short-term investments of $967 million. During the quarter, the company used $240 million of cash generated from operations to pay down debt acquired in the Komag acquisition.

For the six-months ended Dec. 28, 2007, Western Digital reported revenues of $4.0 billion and hard drive shipments of 63.6 million, for increases of 48 percent and 35 percent, respectively, over the comparable prior-year period revenue of $2.7 billion and unit shipments of 47.2 million. GAAP net income for the six-months was $374 million, or $1.66 per share. Excluding $49 million of non-recurring charges for acquired in-process research and development and $60 million of non-recurring tax charges in the first quarter, non-GAAP net income for the current six-month period was $483 million, or $2.15 per share. These current-period non-GAAP earnings reflect an approximately 110 percent increase over the prior-year six-month net income and earnings per share amounts of $231 million and $1.02, respectively. There were no non-recurring items in the prior-year six-month period and therefore there is no non-GAAP measure for the prior year.

The investment community conference call to discuss these results and the company’s outlook will be broadcast live over the Internet today at 2 p.m. PST/5 p.m. EST. The call will be accessible live and on an archived basis via the link below:

Audio Webcast: http://www.westerndigital.com/investor
Click on “Conference Calls”

Telephone Replay: 800-835-4610 (toll-free)
+1-203-369-3352 (international)