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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): June 17, 1999
WESTERN DIGITAL CORPORATION
(Exact Name of Registrant as Specified in Charter)
Delaware 001-08703 95-264-7125
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
8105 Irvine Center Drive
Irvine, California 92618
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (949) 932-5000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 5. OTHER EVENTS.
On June 17, 1999, Western Digital Corporation issued a press release
announcing that its financial results for fourth fiscal quarter are to be weaker
than expected.
A copy of this press release is attached as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
Exhibit Description
- ------- -----------
99.1 Press Release dated June 17, 1999, regarding Western Digital
Corporation's announcement that its financial results for fourth
fiscal quarter are to be weaker than expected.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date: July 14, 1999
WESTERN DIGITAL CORPORATION
By: /s/ Michael A. Cornelius
-----------------------------
Michael A. Cornelius
Vice President, Law and
Administration and Secretary
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EXHIBIT 99.1
Company Contact:
Robert J. Blair
Western Digital Corporation
212.867.4490
bob.blair@wdc.com
For Immediate Release
WESTERN DIGITAL FINANCIAL RESULTS FOR
FOURTH FISCAL QUARTER TO BE WEAKER THAN EXPECTED
IRVINE, Calif.--June 17, 1999--Western Digital Corporation (NYSE: WDC) today
announced that its loss from operations for the quarter ending July 3, 1999 is
expected to be in the range of $.90 to $.98 per share. This range excludes a
previously announced restructuring charge of $20 million associated with the
sale of its media business. The Company indicated that the larger than expected
loss was due to aggressive pricing pressures in the desktop drive product line,
which accounts for nearly 90% of Company revenue.
In light of a recent decision to substantially reduce production of desktop
drives this quarter to avoid building excess inventories, the Company expects
total shipments of approximately 5.5 million units, compared with March quarter
shipments of 5.1 million units.
"The competitive pricing environment has been much more aggressive than we
expected this quarter," said Chuck Haggerty, Western Digital chairman, president
and chief executive officer. "However, overall demand is healthy for WD drives,
reflecting our improved share position at several strategic OEM customers where
we have re-established ourselves as a primary supplier."
Haggerty also noted that the Company's 6.8 GB per platter 5400 RPM desktop drive
is in volume production and would begin shipping before the end of this month,
and that both the 6.8GB/platter 7200 RPM desktop and the new 10,000 RPM WD
Enterprise drives are expected to ship in July.
Western Digital Corporation is a leader in information storage products and
services. The Company designs and manufactures hard drives for personal and
enterprise-wide computing, and markets them to leading systems manufacturers and
selected resellers under the Western Digital brand name. The Company was founded
in 1970 and has long been noted for its storage and end-market systems-level
design knowledge. The Company's home page can be found at
http://www.westerndigital.com.
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This release contains forward-looking statements, including statements regarding
the Company's revenue and results of operations for the quarter ending July 3,
1999, overall demand for the Company's drives, the OEM content of the Company's
business for the quarter, and the time of volume shipments of the Company's 6.8
GB per platter desktop programs and 10,000 RPM enterprise drives. These
statements are based on current expectations, and actual results may vary
materially as a result of several factors, including: the level of pricing
pressure in the desktop hard disk drive market during the final weeks of the
quarter; OEM pulls of the Company's products during the final weeks of the
quarter; actual results for the quarter; success in the Company's efforts to
prepare its 6.8 GB per platter desktop programs and its 10,000 RPM enterprise
drives for volume production; and the risk factors set forth in the Company's
recent registration statements and periodic reports filed with the Securities
and Exchange Commission. The Company undertakes no obligation to update
forward-looking statements to reflect events or circumstances occurring after
the date of such statements.
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