IRVINE, Calif., Dec. 9, 2014 /PRNewswire/ -- Western
Digital® Corp. (NASDAQ: WDC) indicated today that
it has successfully resolved two non-compliance matters with
China's Ministry of Commerce
("MOFCOM") as part of its ongoing and constructive dialogue with
the agency regarding the hold separate restriction associated with
WDC's acquisition of HGST in March
2012. The company said that these steps represent
significant progress in its relationship with MOFCOM and that,
while it cannot predict whether or when the agency will lift the
hold separate condition, MOFCOM has indicated to the company that
it is now fully focused on considering Western Digital's
application to lift the restriction. MOFCOM continues to express
overall satisfaction with the company's efforts to comply with its
hold separate remedy. WDC continues to believe a lift of the
condition best serves the interests of the company, the industry,
the Chinese economy and consumers worldwide.
The company is fully complying with resolutions associated with
these matters, which relate to: (1) the organization of a WDC
department that included several former HGST employees, and (2) the
re-alignment of the ownership structure of an indirect subsidiary
of WDC. To implement these resolutions, the company will pay a
penalty of 600,000 RMB (approximately
$100,000 USD in total), conduct an
immaterial reorganization of the department in question, and make
certain modifications to its subsidiary structure that will be
neutral and non-material from a tax and financial
standpoint.
About Western Digital
Founded in 1970, Western
Digital Corp. (NASDAQ: WDC), Irvine,
Calif., is an industry-leading developer and manufacturer of
storage solutions that enable people to create, manage, experience
and preserve digital content. Its HGST and WD®
subsidiaries are long-time innovators in the storage industry.
Western Digital Corporation is responding to changing market needs
by providing a full portfolio of compelling, high-quality storage
products with effective technology deployment, high efficiency,
flexibility and speed. Our products are marketed under the HGST, WD
and G-Technology™ brands to OEMs, distributors, resellers, cloud
infrastructure providers and consumers. Financial and investor
information is available on the company's Investor Relations
website at investor.wdc.com.
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
concerning the hold separate restrictions and the implementation of
the MOFCOM resolutions. 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,
including the impact of continued uncertainty and volatility in
global economic conditions; supply and demand conditions in the
hard drive industry; uncertainties concerning the availability and
cost of commodity materials and specialized product components;
actions by competitors; unexpected advances in competing
technologies; uncertainties related to the development and
introduction of products based on new technologies and expansion
into new data storage markets; business conditions and growth in
the various hard drive markets; pricing trends and fluctuations in
average selling prices; and other risks and uncertainties listed in
the company's filings with the Securities and Exchange Commission
(the "SEC"), including the company's Form 10-Q filed with the SEC
on Nov. 4, 2014, to which your
attention is directed. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
of the date hereof, and the company undertakes no obligation to
update these forward-looking statements to reflect subsequent
events or circumstances.
Western Digital, WD and the WD logo are registered trademarks in
the U.S. and other countries. HGST trademarks are intended and
authorized for use only in countries and jurisdictions in which
HGST has obtained the rights to use, market and advertise the
brand. Other marks may be mentioned herein that belong to other
companies.
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SOURCE Western Digital Corp.