Sign In  |  Register  |  About Menlo Park  |  Contact Us

Menlo Park, CA
September 01, 2020 1:28pm
7-Day Forecast | Traffic
  • Search Hotels in Menlo Park

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Western Digital Reports Fiscal First Quarter 2024 Financial Results

News Summary

  • First quarter revenue was $2.75 billion, up 3% sequentially (QoQ). Cloud revenue decreased 12% (QoQ), Client revenue increased 11% (QoQ) and Consumer revenue increased 14% (QoQ).
  • First quarter GAAP earnings per share (EPS) was $(2.17) and Non-GAAP EPS was $(1.76), which includes $225 million of underutilization-related charges in Flash and HDD.
  • Expect fiscal second quarter 2024 revenue to be in the range of $2.85 billion to $3.05 billion.
  • Expect Non-GAAP EPS in the range of $(1.35) to $(1.05), which includes $110 to $130 million of underutilization-related charges in Flash and HDD.

Western Digital Corp. (Nasdaq: WDC) today reported fiscal first quarter 2024 financial results.

“Western Digital’s fiscal first quarter results exceeded our expectations as the team’s efforts to bolster business agility and develop differentiated and innovative products across a broad range of end-markets have resulted in sequential margin improvement across flash and HDD businesses,” said David Goeckeler, Western Digital CEO. “Our Consumer and Client end markets continue to perform well and we now expect our Cloud end market to grow going forward. Our improved cost structure positions Western Digital to capitalize on enhanced earnings power as market conditions continue to improve.”

Q1 2024 Financial Highlights

 

 

GAAP

Non-GAAP

 

 

 

 

 

 

 

 

 

 

Q1 2024

 

Q4 2023

 

Q/Q

 

Q1 2024

 

Q4 2023

 

Q/Q

Revenue ($M)

 

$2,750

 

$2,672

 

up 3%

 

$2,750

 

$2,672

 

up 3%

Gross Margin

 

3.6%

 

3.4%

 

up 0.2 ppt

 

4.1%

 

3.9%

 

up 0.2 ppt

Operating Expenses ($M)

 

$695

 

$742

 

down 6%

 

$555

 

$582

 

down 5%

Operating Loss ($M)

 

$(596)

 

$(650)

 

*

 

$(443)

 

$(478)

 

*

Net Loss ($M)

 

$(685)

 

$(715)

 

*

 

$(554)

 

$(621)

 

*

Loss Per Share

 

$(2.17)

 

$(2.27)

 

*

 

$(1.76)

 

$(1.98)

 

*

* not a meaningful figure

 

 

GAAP

Non-GAAP

 

 

 

 

 

 

 

 

 

 

Q1 2024

 

Q1 2023

 

Y/Y

 

Q1 2024

 

Q1 2023

 

Y/Y

Revenue ($M)

 

$2,750

 

$3,736

 

down 26%

 

$2,750

 

$3,736

 

down 26%

Gross Margin

 

3.6%

 

26.3%

 

down 22.7 ppt

 

4.1%

 

26.7%

 

down 22.6 ppt

Operating Expenses ($M)

 

$695

 

$823

 

down 16%

 

$555

 

$689

 

down 19%

Operating Income (Loss) ($M)

 

$(596)

 

$158

 

*

 

$(443)

 

$307

 

*

Net Income (Loss) ($M)

 

$(685)

 

$27

 

*

 

$(554)

 

$64

 

*

Earnings (Loss) Per Share

 

$(2.17)

 

$0.08

 

*

 

$(1.76)

 

$0.20

 

*

* not a meaningful figure

The company had an operating cash outflow of $626 million and ended the quarter with $2.03 billion of total cash and cash equivalents.

Additional details can be found within the company’s earnings presentation, which is accessible online at investor.wdc.com.

End Market Summary

Revenue ($M)

Q1 2024

 

Q4 2023

 

Q/Q

 

Q1 2023

 

Y/Y

Cloud

$872

 

$994

 

down 12%

 

$1,829

 

down 52%

Client

1,147

 

1,035

 

up 11%

 

1,229

 

down 7%

Consumer

731

 

643

 

up 14%

 

678

 

up 8%

Total Revenue

$2,750

 

$2,672

 

up 3%

 

$3,736

 

down 26%

In the fiscal first quarter:

  • Cloud represented 32% of total revenue. Sequentially, the decline was primarily due to lower nearline hard drive shipments to data center customers. The year-over-year decrease was primarily due to declines in shipments for both hard drive and flash products.
  • Client represented 42% of total revenue. Sequentially, the increase was due to growth in flash bit shipments. The year-over-year decrease was primarily due to declines in flash pricing.
  • Consumer represented 26% of total revenue. On both a sequential and year-over-year basis, the increase was driven by both higher content per unit and unit shipments in flash.

Business Outlook for Fiscal Second Quarter of 2024

 

Three Months Ending

 

December 29, 2023

 

GAAP(1)

 

Non-GAAP(1)

Revenue ($B)

$2.85 - $3.05

 

$2.85 - $3.05

Gross margin

9.5% - 11.5%

 

10.0% - 12.0%

Operating expenses ($M)

$650 - $670

 

$560 - $580

Interest and other expense, net ($M)

~$105

 

~$105

Income tax expense ($M)(2)

N/A

 

$20 - $30

Preferred dividend ($M)

$15

 

$15

Diluted earnings per share

N/A

 

$(1.35) - $(1.05)

Diluted shares outstanding (in millions)

~325

 

~325

____________________

(1) Non-GAAP gross margin guidance excludes stock-based compensation expense of approximately $10 million to $15 million. The company’s Non-GAAP operating expenses guidance excludes stock-based compensation expense, and expenses related to strategic review, totaling approximately $85 million to $95 million. In the aggregate, Non-GAAP diluted earnings per share guidance excludes these items totaling approximately $95 million to $110 million. The timing and amount of additional charges the company excludes from its Non-GAAP income tax expense and Non-GAAP diluted earnings per share are dependent on the timing and determination of certain actions and cannot be reasonably predicted. The timing and amount of these charges excluded from Non-GAAP gross margin, Non-GAAP operating expenses, and Non-GAAP diluted earnings per share cannot be further allocated or quantified with certainty. Accordingly, full reconciliations of Non-GAAP gross margin, Non-GAAP operating expenses, Non-GAAP income tax expense and Non-GAAP diluted earnings per share to the most directly comparable GAAP financial measures (GAAP gross profit, GAAP operating expenses, income tax expense and diluted earnings per share, respectively) are not available without unreasonable effort.

(2) The Non-GAAP income tax expense is determined based on a percentage of Non-GAAP pre-tax income or loss. Our estimated Non-GAAP tax dollars may differ from our GAAP tax dollars (i) due to differences in the tax treatment of items excluded from our Non-GAAP net income or loss; (ii) the fact that our GAAP income tax expense or benefit recorded in any interim period is based on an estimated forecasted GAAP tax rate for the full year, excluding loss jurisdictions; and (iii) because our GAAP taxes recorded in any interim period are dependent on the timing and determination of certain GAAP operating expenses.

Investor Communications

The investment community conference call to discuss these results and the company’s business outlook for the fiscal second quarter of 2024 will be broadcast live online today at 5:30 a.m. Pacific/8:30 a.m. Eastern. The live and archived conference call/webcast and the earnings presentation can be accessed online at investor.wdc.com.

About Western Digital

Western Digital is on a mission to unlock the potential of data by harnessing the possibility to use it. With Flash and HDD franchises, underpinned by advancements in storage technologies, we create breakthrough innovations and powerful data storage solutions that enable the world to actualize its aspirations. Core to our values, we recognize the urgency to combat climate change and have committed to ambitious carbon reduction goals approved by the Science Based Targets initiative. Learn more about Western Digital and the Western Digital®, SanDisk® and WD® brands at www.westerndigital.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including statements regarding expectations for the company’s business outlook and financial performance for the fiscal second quarter of 2024 and beyond; end-market performance; product developments; the impact of the company's cost structure on earnings power; and overall market conditions. These forward-looking statements are based on management’s current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. The preliminary financial results for the company’s fiscal first quarter ended September 29, 2023 included in this press release represent the most current information available to management. Actual results when disclosed in the company's Form 10-Q may differ from these preliminary results as a result of the completion of the company’s financial closing procedures, final adjustments, completion of the review by the company’s independent registered accounting firm; and other developments that may arise between now and the filing of the company's Form 10-Q. Other key risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: volatility in global economic conditions; future responses to and effects of global health crises; the impact of business and market conditions; the outcome and impact of the company's ongoing strategic review, including with respect to customer and supplier relationships, regulatory and contractual restrictions, stock price volatility and the diversion of management’s attention from ongoing business operations and opportunities; the impact of competitive products and pricing; the company's development and introduction of products based on new technologies and expansion into new data storage markets; risks associated with cost saving initiatives, restructurings, acquisitions, divestitures, mergers, joint ventures and the company's strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; the company's level of debt and other financial obligations; changes to the company's relationships with key customers; compromise, damage or interruption from cybersecurity incidents or other data system security risks; actions by competitors; the company's ability to achieve its GHG emissions reduction and other ESG goals: risks associated with compliance with changing legal and regulatory requirements and the outcome of legal proceedings; and other risks and uncertainties listed in the company’s filings with the Securities and Exchange Commission (the “SEC”), including the company’s Annual Report on Form 10-K filed with the SEC on August 22, 2023, to which your attention is directed. You should not place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the company undertakes no obligation to update or revise these forward-looking statements to reflect new information or events, except as required by law.

Western Digital, the Western Digital logo, SanDisk and WD are registered trademarks or trademarks of Western Digital Corporation or its affiliates in the US and/or other countries.

WESTERN DIGITAL CORPORATION

PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions; unaudited; on a US GAAP basis)

 

 

September 29,

2023

 

June 30,

2023

 

 

 

 

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

2,032

 

$

2,023

Accounts receivable, net

 

1,451

 

 

 

1,598

 

Inventories

 

3,497

 

 

 

3,698

 

Other current assets

 

597

 

 

 

567

 

Total current assets

 

7,577

 

 

 

7,886

 

Property, plant and equipment, net

 

3,371

 

 

 

3,620

 

Notes receivable and investments in Flash Ventures

 

1,245

 

 

 

1,297

 

Goodwill

 

10,035

 

 

 

10,037

 

Other intangible assets, net

 

80

 

 

 

80

 

Other non-current assets

 

1,693

 

 

 

1,509

 

Total assets

$

24,001

 

 

$

24,429

 

LIABILITIES, CONVERTIBLE PREFERRED STOCK AND SHAREHOLDERS’ EQUITY

Current liabilities:

 

 

 

Accounts payable

$

1,294

 

 

$

1,293

 

Accounts payable to related parties

 

277

 

 

 

292

 

Accrued expenses

 

1,347

 

 

 

1,288

 

Income taxes payable

 

675

 

 

 

999

 

Accrued compensation

 

349

 

 

 

349

 

Current portion of long-term debt

 

1,850

 

 

 

1,213

 

Total current liabilities

 

5,792

 

 

 

5,434

 

Long-term debt

 

5,822

 

 

 

5,857

 

Other liabilities

 

1,398

 

 

 

1,415

 

Total liabilities

 

13,012

 

 

 

12,706

 

Convertible preferred stock

 

876

 

 

 

876

 

Total shareholders’ equity

 

10,113

 

 

 

10,847

 

Total liabilities, convertible preferred stock and shareholders’ equity

$

24,001

 

 

$

24,429

 

WESTERN DIGITAL CORPORATION

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share amounts; unaudited; on a US GAAP basis)

 

 

Three Months Ended

 

September 29,

2023

 

September 30,

2022

Revenue, net

$

2,750

 

 

$

3,736

 

Cost of revenue

 

2,651

 

 

 

2,755

 

Gross profit

 

99

 

 

 

981

 

Operating expenses:

 

 

 

Research and development

 

431

 

 

 

552

 

Selling, general and administrative

 

207

 

 

 

247

 

Employee termination, asset impairment, and other

 

57

 

 

 

24

 

Total operating expenses

 

695

 

 

 

823

 

Operating income (loss)

 

(596

)

 

 

158

 

Interest and other income, net

 

(86

)

 

 

(74

)

Income (loss) before taxes

 

(682

)

 

 

84

 

Income tax expense

 

3

 

 

 

57

 

Net income (loss)

 

(685

)

 

 

27

 

Less: cumulative dividends allocated to preferred shareholders

 

15

 

 

 

 

Net income (loss) attributable to common shareholders

$

(700

)

 

$

27

 

 

 

 

 

Income (loss) per common share:

 

 

 

Basic

$

(2.17

)

 

$

0.09

 

Diluted

$

(2.17

)

 

$

0.08

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

Basic

 

323

 

 

 

316

 

Diluted

 

323

 

 

 

319

 

WESTERN DIGITAL CORPORATION

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions; unaudited; on a US GAAP basis)

 

 

Three Months Ended

 

September 29,

2023

 

September 30,

2022

Operating Activities

 

 

 

Net income (loss)

$

(685

)

 

$

27

 

Adjustments to reconcile net income (loss) to net cash (used in) provided by operations:

 

 

 

Depreciation and amortization

 

147

 

 

 

216

 

Stock-based compensation

 

77

 

 

 

86

 

Deferred income taxes

 

(46

)

 

 

(42

)

Loss (Gain) on disposal of assets

 

(87

)

 

 

1

 

Non-cash portion of asset impairment

 

95

 

 

 

 

Amortization of debt issuance costs and discounts

 

4

 

 

 

3

 

Other non-cash operating activities, net

 

1

 

 

 

44

 

Changes in:

 

 

 

Accounts receivable, net

 

147

 

 

 

382

 

Inventories

 

201

 

 

 

(224

)

Accounts payable

 

25

 

 

 

(125

)

Accounts payable to related parties

 

(15

)

 

 

(25

)

Accrued expenses

 

63

 

 

 

(44

)

Income taxes payable

 

(325

)

 

 

117

 

Accrued compensation

 

1

 

 

 

(104

)

Other assets and liabilities, net

 

(229

)

 

 

(306

)

Net cash (used in) provided by operating activities

 

(626

)

 

 

6

 

Investing Activities

 

 

 

Purchases of property, plant and equipment, net

 

69

 

 

 

(320

)

Activity related to Flash Ventures, net

 

13

 

 

 

99

 

Strategic investments and other, net

 

2

 

 

 

(3

)

Net cash provided by (used in) investing activities

 

84

 

 

 

(224

)

Financing Activities

 

 

 

Employee stock plans, net

 

(43

)

 

 

(50

)

Net proceeds from convertible preferred stock

 

(3

)

 

 

 

Proceeds from debt

 

600

 

 

 

 

Net cash provided by (used in) financing activities

 

554

 

 

 

(50

)

Effect of exchange rate changes on cash

 

(3

)

 

 

(10

)

Net increase (decrease) in cash and cash equivalents

 

9

 

 

 

(278

)

Cash and cash equivalents, beginning of period

 

2,023

 

 

 

2,327

 

Cash and cash equivalents, end of period

$

2,032

 

 

$

2,049

 

WESTERN DIGITAL CORPORATION

SUPPLEMENTAL OPERATING SEGMENT RESULTS

(in millions; except percentages; unaudited)

 

 

Three Months Ended

 

September 29,

2023

 

September 30,

2022

 

 

Net revenue:

 

 

 

Flash

$

1,556

 

 

$

1,722

 

HDD

 

1,194

 

 

 

2,014

 

Total net revenue

$

2,750

 

 

$

3,736

 

Gross profit:

 

 

 

Flash

$

(161

)

 

$

422

 

HDD

 

273

 

 

 

574

 

Total gross profit for segments

 

112

 

 

 

996

 

Unallocated corporate items:

 

 

 

Stock-based compensation expense

 

(13

)

 

 

(14

)

Amortization of acquired intangible assets

 

 

 

 

(1

)

Total unallocated corporate items

 

(13

)

 

 

(15

)

Consolidated gross profit

$

99

 

 

$

981

 

Gross margin:

 

 

 

Flash

 

(10.3

)%

 

 

24.5

%

HDD

 

22.9

%

 

 

28.5

%

Total gross margin for segments

 

4.1

%

 

 

26.7

%

Consolidated gross margin

 

3.6

%

 

 

26.3

%

The Company manages and reports under two reportable segments: flash-based products (“Flash”) and hard disk drives (“HDD”). In the table above, total gross profit for segments and total gross margin for segments are Non-GAAP financial measures, which are also referred to herein as Non-GAAP gross profit and Non-GAAP gross margin, respectively.

WESTERN DIGITAL CORPORATION

PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in millions; unaudited)

 

 

Three Months Ended

 

September 29,

2023

 

June 30,

2023

 

September 30,

2022

GAAP gross profit

$

99

 

 

$

92

 

 

$

981

 

Stock-based compensation expense

 

13

 

 

 

11

 

 

 

14

 

Amortization of acquired intangible assets

 

 

 

 

(1

)

 

 

1

 

Other

 

 

 

 

2

 

 

 

 

Non-GAAP gross profit

$

112

 

 

$

104

 

 

$

996

 

 

 

 

 

 

 

GAAP operating expenses

$

695

 

 

$

742

 

 

$

823

 

Stock-based compensation expense

 

(64

)

 

 

(61

)

 

 

(72

)

Amortization of acquired intangible assets

 

 

 

 

(17

)

 

 

(38

)

Employee termination, asset impairment, and other

 

(57

)

 

 

(53

)

 

 

(24

)

Strategic review

 

(17

)

 

 

(27

)

 

 

 

Other

 

(2

)

 

 

(2

)

 

 

 

Non-GAAP operating expenses

$

555

 

 

$

582

 

 

$

689

 

 

 

 

 

 

 

GAAP operating income (loss)

$

(596

)

 

$

(650

)

 

$

158

 

Gross profit adjustments

 

13

 

 

 

12

 

 

 

15

 

Operating expense adjustments

 

140

 

 

 

160

 

 

 

134

 

Non-GAAP operating income (loss)

$

(443

)

 

$

(478

)

 

$

307

 

 

 

 

 

 

 

GAAP interest and other income, net

$

(86

)

 

$

(80

)

 

$

(74

)

Other

 

 

 

 

(6

)

 

 

(1

)

Non-GAAP interest and other income, net

$

(86

)

 

$

(86

)

 

$

(75

)

 

 

 

 

 

 

GAAP income tax expense (benefit)

$

3

 

 

$

(15

)

 

$

57

 

Income tax adjustments

 

22

 

 

 

72

 

 

 

111

 

Non-GAAP income tax expense

$

25

 

 

$

57

 

 

$

168

 

WESTERN DIGITAL CORPORATION

PRELIMINARY RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(in millions, except per share amounts; unaudited)

 

 

Three Months Ended

 

September 29,

2023

 

June 30,

2023

 

September 30,

2022

GAAP net income (loss)

$

(685

)

 

$

(715

)

 

$

27

 

Stock-based compensation expense

 

77

 

 

 

72

 

 

 

86

 

Amortization of acquired intangible assets

 

 

 

 

16

 

 

 

39

 

Employee termination, asset impairment and other

 

57

 

 

 

53

 

 

 

24

 

Strategic review

 

17

 

 

 

27

 

 

 

 

Other

 

2

 

 

 

(2

)

 

 

(1

)

Income tax adjustments

 

(22

)

 

 

(72

)

 

 

(111

)

Non-GAAP net income (loss)

 

(554

)

 

 

(621

)

 

 

64

 

Less: cumulative dividends allocated to preferred shareholders

 

15

 

 

 

15

 

 

 

 

Non-GAAP net income (loss) attributable to common shareholders

$

(569

)

 

$

(636

)

 

$

64

 

 

 

 

 

 

 

Diluted income (loss) per common share

 

 

 

 

 

GAAP

$

(2.17

)

 

$

(2.27

)

 

$

0.08

 

Non-GAAP

$

(1.76

)

 

$

(1.98

)

 

$

0.20

 

 

 

 

 

 

 

Diluted weighted average shares outstanding:

 

 

 

 

 

GAAP

 

323

 

 

 

321

 

 

 

319

 

Non-GAAP

 

323

 

 

 

321

 

 

 

319

 

 

 

 

 

 

 

Cash flows

 

 

 

 

 

Cash flow provided by (used in) operating activities

$

(626

)

 

$

(68

)

 

$

6

 

Purchases of property, plant and equipment, net

 

69

 

 

 

(119

)

 

 

(320

)

Activity related to Flash Ventures, net

 

13

 

 

 

(32

)

 

 

99

 

Free cash flow

$

(544

)

 

$

(219

)

 

$

(215

)

To supplement the condensed consolidated financial statements presented in accordance with U.S. generally accepted accounting principles (“GAAP”), the table above sets forth Non-GAAP gross profit; Non-GAAP gross margin; Non-GAAP operating expenses; Non-GAAP operating income and loss; Non-GAAP interest and other income, net; Non-GAAP income tax expense; Non-GAAP net income and loss; Non-GAAP diluted income and loss per common share and free cash flow (“Non-GAAP measures”). These Non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with GAAP and may be different from Non-GAAP measures used by other companies. The company believes the presentation of these Non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors for measuring the company’s earnings performance and comparing it against prior periods. Specifically, the company believes these Non-GAAP measures provide useful information to both management and investors as they exclude certain expenses, gains and losses that the company believes are not indicative of its core operating results or because they are consistent with the financial models and estimates published by many analysts who follow the company and its peers. As discussed further below, these Non-GAAP measures exclude, as applicable, stock-based compensation expense, amortization of acquired intangible assets, employee termination, asset impairment, and other, expenses related to our strategic review, other adjustments, and income tax adjustments, and the company believes these measures along with the related reconciliations to the GAAP measures provide additional detail and comparability for assessing the company’s results. These Non-GAAP measures are some of the primary indicators management uses for assessing the company’s performance and planning and forecasting future periods. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results.

As described above, the company excludes the following items from its Non-GAAP measures:

Stock-based compensation expense. Because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the company’s control, the company believes excluding stock-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time and compare it against the company’s peers, a majority of whom also exclude stock-based compensation expense from their Non-GAAP results.

Amortization of acquired intangible assets. The company incurs expenses from the amortization of acquired intangible assets over their economic lives. Such charges are significantly impacted by the timing and magnitude of the company’s acquisitions and any related impairment charges.

Employee termination, asset impairment, and other. From time-to-time, in order to realign the company’s operations with anticipated market demand or to achieve cost synergies from the integration of acquisitions, the company may terminate employees and/or restructure its operations. From time-to-time, the company may also incur charges from the impairment of intangible assets and other long-lived assets. In addition, the company may record credits related to gains upon sale of property due to restructuring or reversals of charges recorded in prior periods. In addition, the Company has taken actions to reduce the amount of capital invested in facilities, including the sale-leaseback of facilities. These charges or credits are inconsistent in amount and frequency, and the company believes they are not indicative of the underlying performance of its business.

Strategic review. The company incurred expenses associated with its ongoing review of potential strategic alternatives aimed at further optimizing the long-term value for stockholders. The company believes these charges do not reflect the company’s operating results and that they are not indicative of the underlying performance of its business.

Other adjustments. From time-to-time, the company incurs charges or gains that the company believes are not a part of the ongoing operation of its business. The resulting expense or benefit is inconsistent in amount and frequency.

Income tax adjustments. Income tax adjustments include the difference between income taxes based on a forecasted annual Non-GAAP tax rate and a forecasted annual GAAP tax rate as a result of the timing of certain Non-GAAP pre-tax adjustments. The income tax adjustments also include adjustments for the re-measurement of certain unrecognized tax benefits primarily related to tax positions taken in prior quarters, including interest. These adjustments are excluded because the company believes that they are not indicative of the underlying performance of its ongoing business.

Additionally, free cash flow is defined as cash flows provided (used in) by operating activities less purchases of property, plant and equipment, net, and the activity related to Flash Ventures, net. The company considers free cash flow generated in any period to be a useful indicator of cash that is available for strategic opportunities including, among others, investing in the company’s business, making strategic acquisitions, repaying debt and strengthening the balance sheet.

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 MenloPark.com & California Media Partners, LLC. All rights reserved.