In October 2015, Western Digital Announced that it would acquire SanDisk for $19 Billion (WSJ). Here’s a look at the numbers from both those companies.
- China and the U.S.A. are the biggest markets for both the companies
- SanDisk had 30.5% of its revenue from China in FY 2014
- Western Digital had 18.7% of its revenue from the China in FY 2014
- Western Digital had 20.9% of its revenue from the U.S. in FY 2014
- SanDisk had 17.1% of its revenue from the U.S. in FY 2014
- The combined entity will generate nearly 22% of its revenue from China
- The net profit margin for the combined entity will be around 12%
- Assuming that the current trends continue, the combined entity will grow in the low- to mid-single digits.
- If flash drives gain more in-roads in the enterprise and replace more of the traditional hard drives in servers for high-performance computing and analytics, that could contribute to higher growth in revenues.
The growth for Western Digital has stalled lately. It reported a decline in earnings for FY 2014. Although, those prospects might improve if the personal computer market rebounds.
Table 1: Western Digital Corp., Revenues and Profit Margin Fiscal Year 2011-2014.
Western Digital Revenues and Profit Margins 2011-2014
Table 2: SanDisk Corp., Revenues and Profit Margins, Fiscal Year 2010 – 2014
SanDisk Corp., Revenue and Profit Margins 2010-2014
Chart 1: Percentage of Total Revenues from China
% of Total Revenue from China – Western Digital and San Disk
Chart 2: Percentage of Total Revenues from The U.S.A.
% of Total Revenue from U.S.A
- Table 3: Western Digital and SanDisk Earnings Per Share Basic and Diluted Fiscal Years 2011-2014
Western Digital and SanDisk Earnings Per Share Basic and Diluted 2011-2014
All data is for fiscal years for both companies. The fiscal year for Western Digital is approximately from beginning of July to end of June. SanDisk approximately follows the calendar year as their fiscal year.
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