Western Digital 2009 Annual Report Download - page 5

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0%
5%
10%
15%
20%
FY2005 FY2006 FY2007 FY2008 FY2009
PERCENTAGE OF REVENUE
FROM BRANDED PRODUCTS
20%
6% 7%
16% 18%
Our strategy to focus on the industry’s high-growth
sector of external storage resulted in branded
products revenue increasing to 20 percent of total
revenue, up from 18 percent in fiscal 2008.
UÊ The WD TV™ HD Media Player in November 2008, creating
a new category of consumer device easily bringing consumers’
stored media content out of the study and into the family room,
independent of the PC.
UÊ The industry’s first 2 TB, 3.5-inch hard drive for desktop PC
and external storage applications in January 2009.
UÊ Entry into the solid-state storage market, with the acquisition
of SiliconSystems, Inc. in March 2009.
UÊ The industry’s first 2 TB, 3.5-inch SATA hard drive for enterprise
applications in April 2009.
UÊ SiliconDrive® III solid-state drives (SSD) for embedded systems
and data streaming applications in June 2009.
Finally, shortly after the close of fiscal 2009, we began shipment
of the industry’s first 1 TB 2.5-inch drive as a member of our
My Passport™ portable drive family.
In fiscal 2009, in addition to maintaining the momentum of our
industry leading 2.5-inch and 3.5-inch ATA hard drive product
lines, we have been able to fund the internal development of
our new 2.5-inch SAS hard drives for high-performance, high-
capacity enterprise applications, which we will begin shipping in
fiscal 2010, and our acquisition of SiliconSystems, Inc., for high-
performance, low-capacity SSD applications. In addition, we have
launched a family of WD TV HD Media Player products, which
make stored content easier to view in high quality, independent of
the PC, and thereby drives demand for additional high-capacity,
cost-effective storage. We are also engaged in the development
of solid-state solutions for the enterprise market which we plan to
launch in fiscal 2011.
Albeit tempered in the near term by the macroeconomic
environment, we believe that demand to store increasing amounts
of rich content and data will continue to grow in the years ahead.
Delighting our customers with compelling high-quality products,
driving technology advancements that will both broaden our reach
beyond our core hard drive business and expand our served
markets, and preserving our low-cost leadership remain key to
achieving our goal of sustained profitable growth.
John F. Coyne
President and Chief Executive Officer
September 28, 2009
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
FY2005 FY2006 FY2007 FY2008 FY2009
CASH FLOW FROM OPERATIONS
$1,305
$1,399
$421 $368
Dollars in millions
$618
Despite the challenging macroeconomic conditions
in fiscal 2009, WD generated $1.3 billion in cash
flow from operations.
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
FY2005 FY2006 FY2007 FY2008 FY2009
SHAREHOLDERS’ EQUITY
$3,192
$2,696
$1,157
Dollars in millions
$1,716
$700
WD’s long-term, sustained profitability has resulted
in $3.2 billion of shareholders’ equity.