8-KRegulation FDExhibits & Filings

WESTERN DIGITAL CORP 8-K Report, Regulation FD Disclosure (Jul 17, 2017)

Filed July 17, 2017For Securities:WDC

Summary

Western Digital Corporation (WDC) has disclosed in an 8-K filing dated July 17, 2017, a significant development concerning its joint ventures with Toshiba Corporation related to NAND flash-memory production. A California court has issued a directive preventing Toshiba from transferring its interests in these joint ventures without prior notification to WDC's SanDisk subsidiaries. This ruling is intended to preserve the status quo for ongoing arbitration proceedings, addressing WDC's concerns about Toshiba's potential actions regarding these crucial assets. The court's decision is a protective measure, ensuring that WDC is not blindsided by any unilateral moves from Toshiba concerning their shared NAND flash-memory operations. This legal intervention highlights the ongoing dispute and its potential impact on WDC's strategic interests in the competitive NAND flash-memory market. Investors should monitor the arbitration process and any further developments in the relationship between Western Digital and Toshiba.

Key Highlights

  • 1Court Order: A California court has ordered Toshiba Corporation not to transfer its interests in three NAND flash-memory joint ventures (JVs) with WDC's SanDisk subsidiaries without advance notice.
  • 2Preservation for Arbitration: The court's directive is aimed at preserving the issue for arbitration, indicating a formal dispute resolution process is underway.
  • 3SanDisk Subsidiaries Involved: The JVs in question are operated by Western Digital's SanDisk subsidiaries.
  • 4NAND Flash-Memory Focus: The dispute centers around Toshiba's ownership stakes in critical NAND flash-memory manufacturing operations.
  • 5Protective Measure: The ruling acts as a preliminary injunction, safeguarding WDC's position in the JV dispute with Toshiba.
  • 6Exhibit Referenced: The disclosure is accompanied by a press release (Exhibit 99.1) detailing the court's order.

Frequently Asked Questions

The main issue is a legal directive from a California court preventing Toshiba Corporation from transferring its stakes in three NAND flash-memory joint ventures with WDC's SanDisk subsidiaries. This is to ensure these interests are preserved for an ongoing arbitration process.

This court order is important because it prevents Toshiba from making unilateral decisions about its JV interests without notifying WDC. This protective measure safeguards WDC's strategic position and its investments in critical NAND flash-memory production facilities while the arbitration process unfolds.

The 'JVs' refer to three joint ventures operated by Western Digital's SanDisk subsidiaries in partnership with Toshiba Corporation, focused on the manufacturing of NAND flash-memory, a key component in storage devices.

No, this filing indicates the dispute is ongoing. The court's order is a preliminary step to preserve the situation for arbitration, not a final resolution. Investors should follow the arbitration proceedings for any potential resolution.