Western Digital 1998 Annual Report Download - page 5

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Storage Division to increase volume
and market share.
In the face of one of the hard drive
industry’s longest down cycles, WD
maintains a strong balance sheet and
vigorous asset management practices.
Last February, we brought to market
an offering of zero coupon convertible
subordinated debentures that grew in
response to investor demand from
$250 million to $460 million. At
the end of fiscal 1998, our cash and
cash equivalents totalled $460 million.
As a result, WD is well positioned
financially in this cyclical market.
We have reason for optimism about
the Company’s long-term future.
We foresee continuing growth in the
enterprise storage business, in the
market for sub-$1,000 desktop PCs,
and in commercial desktop computers
requiring high performance for
demanding graphics and internet
applications. Western Digital is well
equipped to meet the growing needs
of all these business sectors. We are
also very optimistic about the
opportunity to increase our market
leadership, powered by technological
advancements now available to us
through our relationship with IBM
and renewed vigor in our own design
efforts.
We have ambitious plans for Western
Digital’s fiscal year 1999 and the years
beyond. We have the people, the
financial resources and the will to
realize these plans. I look forward to
reporting improved results as our
strategy and plans are implemented
and our industry’s cycle is reversed.
Sincerely,
Charles A. Haggerty
Chairman, President and
Chief Executive Officer
September 22, 1998