Western Digital updates guidance after SanDisk acquisition

Western Digital Corp. (NASDAQ: WDC) has updated financial guidance for its fourth fiscal quarter ending July 1, 2016, to reflect the contribution of the recently acquired SanDisk business, the company said.

Having acquired SanDisk on May 12, 2016, Western Digital now expects its fourth quarter revenue in the range of USD3.35 billion to USD3.45 billion compared to its earlier forecast of USD2.6 billion to USD2.7 billion.

The company now expects its fourth quarter EPS on a non-GAAP basis to be between USD0.65 to USD0.70, compared with its earlier forecast of USD1.00 to USD1.10 per share.

The new guidance includes total interest costs of approximately USD220 million, which includes interest expense on newly issued debt of approximately USD185 million and amortization of debt issuance costs of approximately USD30 million.

Interest expense on the newly issued debt includes approximately USD50 million incurred prior to the deal closing date. Due to the impact of the interest expense, the company estimates a non-GAAP tax benefit of approximately USD15 million for the quarter.

Diluted share count for the quarter, including shares issued to SanDisk shareholders as of May 12, 2016, is expected to be 266 million, equivalent to 290 million shares on a full quarter basis.

Western Digital Corporation provides storage technologies and solutions that enable people to create, leverage, experience and preserve data. The company addresses ever-changing market needs by providing storage solutions with customer-focused innovation, high efficiency, flexibility and speed. Our products are marketed under the HGST, SanDisk and WD brands to OEMs, distributors, resellers, cloud infrastructure providers and consumers.