Western Digital 2010 Annual Report Download - page 45

Download and view the complete annual report

Please find page 45 of the 2010 Western Digital annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 104

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104

Summary Comparison of 2010, 2009 and 2008
The following table sets forth, for the periods presented, summary information from our consolidated statements of
income by dollars and percentage of net revenue (in millions, except percentages):
July 2, 2010 July 3, 2009 June 27, 2008
Years Ended
Revenue, net ............................... $9,850 100.0% $7,453 100.0% $8,074 100.0%
Gross margin............................... 2,401 24.4 1,337 17.9 1,739 21.5
R&D and SG&A ............................ 876 8.9 710 9.5 684 8.5
Acquired in-process research and development ....... — — 14 0.2 49 0.6
Restructuring and other, net .................... — — 94 1.3 — —
Operating income ........................... 1,525 15.5 519 7.0 1,006 12.4
Other expense, net ........................... (5) (0.1) (18) (0.2) (25) (0.3)
Income before income taxes..................... 1,520 15.4 501 6.7 981 12.1
Income tax provision ......................... 138 1.4 31 0.4 114 1.4
Net income ................................ 1,382 14.0 470 6.3 867 10.7
The following table sets forth, for the periods presented, summary information regarding unit shipments, ASPs and
revenues by geography, channel and product (in millions, except percentages and ASPs):
July 2,
2010
July 3,
2009
June 27,
2008
Years Ended
Net revenue . .................................... $9,850 $7,453 $8,074
Unit shipments* .................................. 194 146 133
ASPs (per unit)* .................................. $ 50 $ 51 $ 59
Revenues by Geography(%)
Americas . . .................................... 24% 24% 31%
Europe, Middle East and Africa ...................... 23 27 30
Asia ......................................... 53 49 39
Revenues by Channel(%)
OEMs ........................................ 51% 54% 51%
Distributors.................................... 31 26 31
Retailers . . .................................... 18 20 18
Revenues by Product(%)
Non-desktop sources ............................. 64% 62% 56%
Desktop hard drives .............................. 36 38 44
* Based on sales of hard drive units only. Non-hard drive units were not material.
In accordance with accounting principles generally accepted in the United States U.S. (“U.S. GAAP”), operating
results for Hoya, SiliconSystems, and Komag, Incorporated (“Komag”) which were acquired on June 30, 2010, March 27,
2009 and September 5, 2007, respectively, prior to the dates of their acquisitions are not included in our operating
results.
Fiscal Year 2010 Compared to Fiscal Year 2009
Net Revenue. Net revenue was $9.8 billion for 2010, an increase of 32% from 2009. Total hard drive shipments
increased to 194 million units as compared to 146 million units for the prior year. The increase in net revenue resulted
primarily from an increase in unit shipments due to the strong demand for hard drives, particularly in the mobile PC
market. We shipped 80 million mobile drives in 2010 as compared to 55 million units in 2009. The increase in mobile
39