Overview of the firm
Founded in 1970 in Irvine, California, Western Digital Corporation (WDC) is a leading developer and manufacturer of storage solutions that enable people to create, manage, experience and preserve digital content. Its main competitors include SanDisk Corporation (SNDK) and Seagate Technology (STX).
Revenues of $3.2 billion in 4Q15
On July 29, 2015, Western Digital announced its 4Q15 and full year results, declaring revenues of $3.2 billion—a 10.11% decrease compared to 3Q15 and 12.59% lower than its 4Q14 revenues. The company’s net income for 4Q15 on a GAAP (generally accepted accounting principles) basis was $220 million, and its diluted EPS (earnings per share) was $0.94. This compares to a 3Q15 net income of $384 million, with a diluted EPS of $1.63, and a 4Q14 net income of $317 million, with a diluted EPS of $1.31. On a non-GAAP basis, the company’s 4Q15 net income was $356 million, or $1.51 per share. This compares to a net income of $317 million, or $1.32 per share, in 4Q14.
Steve Milligan, Western Digital’s CEO, commented on the report, stating that he was “satisfied with our execution and performance in the fourth fiscal quarter in light of the weak PC market.” He added that the company’s “financial performance reflects our strong product and technology positioning coupled with solid execution,” and that Western Digital remains “positive about the opportunity to create long-term value in the evolving storage ecosystem.”
Western Digital makes up 0.50% of the Technology Select Sector SPDR ETF (XLK) and 0.35% of the Powershares QQQ ETF (QQQ). Read the next part of this series for more on the company’s fiscal 2015 revenues, cash flow, and operating expenses.