Western Digital 2001 Annual Report Download - page 8

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Although we are excited about the growth prospects in our core business and new emerging
applications for hard drives, we continue to allocate resources carefully and selectively to leverage our core
competencies into new ventures. For example, Keen Personal Media offers a new tier of TV service that
allows cable companies to remain engaged with their customers as the providers of a convenient, personalized
television experience. The company’s system entered beta testing with two cable TV operators in July 2001,
and has attracted $6.5 million in third-party investment capital.
Two other new venture investments, SageTree and Cameo Technologies, apply Western Digital’s
capabilities in different ways. SageTree is providing packaged analytic applications and professional services
for the supply chain intelligence market. The company, financed
in part by an investment from data warehousing leader NCR, has
bundled MicroStrategy’s business intelligence platform in its
supply chain, manufacturing and field performance suites.
Cameo Technologies has announced Universal Pictures as
its first major customer for CameoCAST™
, a consumer network
that delivers and manages video entertainment and promotional
content locally on consumers’ personal computers. Universal is
participating in a beta program with thousands of consumers in
advance of a full business relationship with Cameo.
To reduce the investment risk associated with WD’s new
ventures, each of these businesses is required to attain a level of
revenue or outside funding within a certain period of time, or be
restructured or divested.
Shortly after the close of the fiscal year, we sold the assets of Connex, a developer of network storage
devices, when our analysis indicated the need for a substantial further investment and an uncertain future for
all but the biggest competitors in that market. Western Digital received $11 million in cash and gained an
important new customer through an agreement to supply hard drives to the buyer of Connex, Quantum
Corporation’s Snap Appliances business.
FY1999
$534,144
$225,496
Reduction in
LONG-TERM DEBT
$112,491
FY2000 FY2001
$100,000
$0
$200,000
$300,000
$400,000
$500,000
$600,000
Dollars in thousands
Western Digital has redeemed over $400 million in long-
term debt in the last two years.
Cameo Technologies has announced Universal Pictures as its
first major customer for CameoCAST ™...