Western Digital 2007 Annual Report Download - page 39

Item 6. Selected Financial Data
Financial Highlights
This selected consolidated financial data should be read together with the Consolidated Financial Statements and
related Notes contained in this Annual Report on Form 10-K and in the subsequent reports filed with the SEC, as well as
the section of this Annual Report on Form 10-K, and the other reports entitled “Management’s Discussion and Analysis
of Financial Condition and Results of Operations.”
June 29,
2007
June 30,
2006
July 1,
2005
July 2,
2004
June 27,
2003
Years Ended
(in millions, except per share and employee data)
Revenue, net ............................... $ 5,468 $ 4,341 $ 3,639 $ 3,047 $ 2,719
Gross margin ............................... $ 900 $ 829 $ 590 $ 461 $ 443
Net income ................................ $ 564 $ 395 $ 196 $ 150 $ 179
Net income per common share:
Basic .............................. $ 2.57 $ 1.84 $ .94 $ .73 $ .91
Diluted ............................ $ 2.50 $ 1.76 $ .90 $ .69 $ .87
Working capital ............................. $ 899 $ 633 $ 361 $ 270 $ 238
Total assets................................. $ 2,901 $ 2,086 $ 1,589 $ 1,159 $ 866
Long-term debt ............................. $ 10 $ 19 $ 33 $ 53 $ —
Shareholders’ equity........................... $ 1,716 $ 1,157 $ 700 $ 487 $ 327
Number of employees ......................... 29,572 24,750 23,161 17,376 11,508
No cash dividends were paid for the years presented.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
Forward-Looking Statements
The following discussion and analysis contains forward-looking statements within the meaning of the federal securities laws. You
are urged to carefully review our description and examples of forward-looking statements included earlier in this Annual Report on
Form 10-K immediately prior to Part I, under the heading “Forward Looking Statements.” Forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. You
are urged to carefully review the disclosures we make concerning risks and other factors that may affect our business and operating
results, including those made in Item 1A of this Annual Report on Form 10-K, as well as our other reports filed with the SEC. You are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. We do not
intend, and undertake no obligation, to publish revised forward-looking statements to reflect events or circumstances after the date of this
document or to reflect the occurrence of unanticipated events.
Our Company
We design, develop, manufacture and sell hard drives. A hard drive is a device that uses one or more rotating
magnetic disks to store and allow fast access to data. Hard drives are key components of computers, including desktop and
notebook computers (“PCs”), data storage subsystems and many consumer electronic (“CE”) devices.
We sell our products worldwide to original equipment manufacturers (“OEMs”) and original design manufactures
(“ODMs”) for use in computer systems, subsystems or CE devices, and to distributors, resellers and retailers. Our hard
drives are used in desktop computers, notebook computers, and enterprise applications such as servers, workstations,
network attached storage, storage area networks and video surveillance equipment. Additionally, our hard drives are used
in CE applications such as digital video recorders (“DVRs”), and satellite and cable set-top boxes (“STBs”). We also sell
our hard drives as stand-alone storage products and integrate them into our own WD-branded external storage appliances
for purposes such as personal data backup and portable or expanded storage of digital music, photography, video, and
other data.
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