Western Digital 2001 Annual Report Download - page 9

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Also, after year’s end, the assets of SANavigator were sold to McDATA Corporation for $29.8 million in
cash. The sale of this successful startup in the SAN software business resulted in a healthy return on our
investment. Our experience with investments in fledgling businesses like these is mixed, as can be expected.
Nevertheless, we believe Western Digital has a duty to pursue new business opportunities in order to advance
technology, leverage our core competencies, open new markets and create a better-balanced business model for
the long term. So, we will continue to make investments in promising technologies related to our own, within the
limits of prudent risk-taking.
Our outlook is favorable. In our new, cost-effective corporate headquarters we have a capable new
management team. They are supported by an enthusiastic and battle-tested team of 7,800 WD employees
worldwide who have rebuilt Western Digital into one of the hard
drive industry’s most respected companies.
We have proven Western Digital’s ability to weather difficult
markets, intense competition and technological challenges, time after
time. Our success under the most trying circumstances has given us
confidence that further progress can be made in our financial
performance. We are confident of Western Digital’s ability to
manufacture and market highly complex products requiring great
precision in production and assembly, and of the strong market
position these abilities give us in the newly consolidated and
restructured hard drive industry. We will explore every way Western
Digital’s abilities can be employed productively and profitably.
Matthew E. Massengill
President and Chief Executive Officer
September 27, 2001
...we will continue to make investments in promising
technologies related to our own, within the limits of
prudent risk-taking.
Timely conversion of its debentures and strategic use of
its equity line have strengthened Western Digital's
balance sheet and returned the company to positive
shareholders’ equity.
Improvement in
SHAREHOLDERS' EQUITY
FY1999
$(153,790)
FY2000 FY2001
$(200,000)
$(150,000)
$(100,000)
$(50,000)
0
$50,000
$6,803
Dollars in thousands
$(109,834)