Western Digital 2004 Annual Report Download - page 20

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Item 6. Selected Financial Data
Financial Highlights
This selected consolidated Ñnancial data should be read together with the Consolidated Financial Statements and
related Notes contained in this report and in our subsequent reports Ñled with the SEC, as well as the section of this
report and our other reports entitled ""Management's Discussion and Analysis of Financial Condition and Results of
Operations.''
Years Ended
July 2, June 27, June 28, June 29, June 30,
2004 2003 2002 2001 2000
(in millions, except per share and employee data)
Revenue, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $3,047 $2,719 $2,151 $1,953 $1,957
Gross margin ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 462 443 282 208 10
Income (loss) from continuing operations ÏÏÏÏÏÏÏÏÏÏÏÏ 151 182 53 (52) (330)
Per share income (loss) from continuing operations:
Basic ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ .74 $ .93 $ .28 $ (.31) $(2.69)
DilutedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ .70 $ .89 $ .28 $ (.31) $(2.69)
Working capital ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 270 $ 238 $ 37 $ 45 $ 7
Total assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,159 $ 866 $ 637 $ 508 $ 613
Long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 53 $ Ì $ Ì $ 112 $ 226
Shareholders' equity (deÑcit)ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 488 $ 327 $ 103 $ 7 $ (110)
Number of employees ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 17,376 11,508 9,550 7,909 7,321
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
This report contains forward-looking statements within the meaning of the federal securities laws. The statements
that are not purely historical should be considered forward-looking statements. Often they can be identiÑed by the use of
forward-looking words, such as ""may,'' ""will,'' ""could,'' ""project,'' ""believe,'' ""anticipate,'' ""expect,'' ""estimate,''
""continue,'' ""potential,'' ""plan,'' ""forecasts,'' and the like. Statements concerning current conditions may also be
forward-looking if they imply a continuation of current conditions. Examples of forward-looking statements include, but
are not limited to, statements concerning the growth of unit sales of desktop PCs; growth of unit shipments of hard disk
drives in the desktop PC, CE (including audio-video), and mobile markets; growth of revenue from sales of hard disk
drives in the desktop PC market; increase in sales of notebook systems; growth rate of sales of home electronic game
devices that include hard disk drives; increase in the demand for desktop PC hard disk drives in Asia; the Company's
expansion into the CE market; expansion of the SATA interface in desktop PCs and growth of EIDE and SATA interfaces
in enterprise hard disk drives; growth of the market for enterprise and other non-desktop PC applications of 3.5-inch
form factor hard disk drives; the Company's entrance into the mobile hard disk drive market; the Company's current
expectations regarding depreciation expense for the head manufacturing operations, capital expenditures, gross margin
percentages, cash conversion cycle, inventory turns, cash and cash equivalents, liquidity and cash Öows; the impact of the
acquisition of head manufacturing assets on the Company's long-term Ñnancial business model, operating income,
working capital investments, and research and development expenses; and increase in areal density (the measure of
storage per disk) and decrease in areal density growth rate.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to diÅer materially
from those expressed in the forward-looking statements. Readers are urged to carefully review the disclosures made by the
Company concerning risks and other factors that may aÅect the Company's business and operating results, including
those made in this report under the caption ""Risk Factors That May AÅect Future Results'' as well as the Company's
other reports Ñled with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements,
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