Western Digital Comments on Letter from Elliott Management

Rhea-AI Summary

Western Digital Corp. (NASDAQ: WDC) acknowledges a letter from Elliott Management, emphasizing their commitment to engaging with shareholders. The company highlights its strong market position in flash and HDD sectors and a strategy aimed at capitalizing on the growing demand for cloud storage. Western Digital aims to unlock long-term value through innovation and diverse market channels. Despite these strengths, the press release notes potential risks, including global economic conditions and competitive pressures.

Positive

• Strong market position in flash and HDD sectors.
• Commitment to engaging with shareholders and considering their ideas.
• Focused strategy to capitalize on the expanding cloud storage market.

Negative

• Risks associated with global economic volatility.
• Potential competitive pressures impacting market position.

SAN JOSE, Calif.--(BUSINESS WIRE)-- Western Digital Corp. (“Western Digital”) (NASDAQ: WDC) today issued the following statement regarding a letter sent by Elliott Management to Western Digital’s Board of Directors:

“Western Digital maintains an ongoing dialogue with our shareholders and values constructive input on our business. We agree that Western Digital is an excellent, yet undervalued, company with strong positions in our flash and HDD businesses and look forward to engaging with Elliott to discuss their views. Our Board of Directors is committed to acting in the best interests of all our shareholders and will carefully consider Elliott’s ideas.”

“Western Digital is a leading data infrastructure company focused on executing its strategy to capitalize on the huge market opportunity stemming from the rapid global adoption of the cloud and the expansive and growing ecosystem it supports. Our end market diversity and breadth, restructured organization, broad customer base, channel reach and innovative product leadership all position the company to benefit from the multi-year growth in data creation and storage. We will continue our commitment to innovation and our focus on delivering the quality, performance and cost-effectiveness our customers rely on. Our CEO, David Goeckeler and the Board of Directors have explored a range of options to unlock and deliver long-term value and we will continue our ongoing dialogue with our shareholders.”

About Western Digital

Western Digital is on a mission to unlock the potential of data by harnessing the possibility to use it. With both Flash and HDD franchises, underpinned by advancements in memory 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, valuation and financial performance; expectations for demand trends, product performance, product ramps and market conditions; and expectations regarding our product portfolio and momentum. 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. Other risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements include: future responses to and effects of the COVID-19 pandemic; volatility in global economic conditions; impact of business and market conditions; impact of competitive products and pricing; our 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 our strategic relationships; difficulties or delays in manufacturing or other supply chain disruptions; hiring and retention of key employees; our substantial level of debt and other financial obligations; changes to our relationships with key customers; disruptions in operations from cyberattacks or other system security risks; actions by competitors; 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 Form 10-K filed with the SEC on August 27, 2021, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503005973/en/

Investor:

T. Peter Andrew

949.672.9655

peter.andrew@wdc.com

Media:

Sard Verbinnen & Co

John Christiansen / David Isaacs / Leah Polito

WesternDigital-SVC@SARDVERB.com

Source: Western Digital Corp.

FAQ

What is the latest news on Western Digital (WDC) and Elliott Management?

Western Digital has acknowledged a letter from Elliott Management, emphasizing their commitment to dialogue with shareholders.

How does Western Digital plan to unlock shareholder value?

The company aims to unlock shareholder value through innovation and a focused strategy to capitalize on market opportunities.

What are the risks mentioned in Western Digital's press release?

The press release mentions risks such as global economic volatility and competitive pressures.

What market position does Western Digital have?

Western Digital has a strong market position in both flash and HDD businesses.