Feeds

Western Digital sells media business to Komag

Takes $20 million charge, axes 550 jobs

  • alert
  • submit to reddit

Intelligent flash storage arrays

Western Digital will take a fourth quarter charge of $20 million to cover the sale of its disk media business. The disk maker confirmed it had sold the business for 10.8 million Komag shares, a $30.1 million three-year note and $1.6 million in cash. It added that around half the staff in its media operation would be lost. Komag, which makes magnetic platters that record information inside disk drives, has also taken on leases connected to production equipment and facilities. This includes a three-year purchase agreement, during which Western will buy a big chunk of its media from California-based Komag. As a result of the acquisition, US giant Western expects to take a $20 million charge, including $3 million in cash. A First Call survey of 12 analysts predicted Western would lose 30 cents a share in the fourth quarter. For the fourth quarter the previous year ended 27 June, Western lost $167.7 million, or $1.84 cents a share. 550 out of 1000 jobs will be slashed at Western's disk media business. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.