Western Digital 2011 Annual Report Download - page 40

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Summary Comparison of 2011, 2010 and 2009
The following table sets forth, for the periods presented, selected summary information from our consolidated
statements of income by dollars and percentage of net revenue (in millions, except percentages):
July 1, 2011 July 2, 2010 July 3, 2009
Years Ended
Net revenue ............................... $9,526 100.0% $9,850 100.0% $7,453 100.0%
Gross margin............................... 1,791 18.8 2,401 24.4 1,337 17.9
R&D and SG&A ............................ 1,010 10.6 876 8.9 710 9.5
Acquired in-process research and development ....... — — — — 14 0.2
Restructuring and other, net .................... — — — — 94 1.3
Operating income ........................... 781 8.2 1,525 15.5 519 7.0
Other expense, net ........................... (1) — (5) (0.1) (18) (0.2)
Income before income taxes..................... 780 8.2 1,520 15.4 501 6.7
Income tax provision ......................... 54 0.6 138 1.4 31 0.4
Net income ................................ 726 7.6 1,382 14.0 470 6.3
The following table sets forth, for the periods presented, summary information regarding unit shipments, ASPs and
revenues by geography and channel (in millions, except percentages and ASPs):
July 1,
2011
July 2,
2010
July 3,
2009
Years Ended
Net revenue ..................................... $9,526 $9,850 $7,453
ASPs (per unit)* .................................. $ 45 $ 50 $ 51
Revenues by Geography(%)
Americas ...................................... 22% 24% 24%
Europe, Middle East and Africa ...................... 23 23 27
Asia ......................................... 55 53 49
Revenues by Channel(%)
OEM ........................................ 49% 51% 54%
Distributors .................................... 32 31 26
Retailers ...................................... 19 18 20
Unit shipments*
Compute ...................................... 151 147 109
Non-compute .................................. 46 38 33
Enterprise ..................................... 10 9 4
Total units shipped . . . ............................. 207 194 146
* Based on sales of hard drive units only.
In accordance with accounting principles generally accepted in the United States (“U.S. GAAP”), operating results
for the magnetic media sputtering operations of Hoya Corporation and Hoya Magnetics Singapore Pte. Ltd. (together,
“Hoya”) and SiliconSystems Inc. (“SiliconSystems”), which were acquired on June 30, 2010 and March 27, 2009,
respectively, are included in our operating results only after the dates of their acquisitions.
Fiscal Year 2011 Compared to Fiscal Year 2010
Net Revenue. Net revenue was $9.5 billion for 2011, a decrease of 3% from 2010. Total hard drive shipments
increased to 207 million units as compared to 194 million units for the prior year. The decrease in net revenue resulted
primarily from a $5 decrease in ASP from $50 to $45, partially offset by the increase in unit shipments.
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