Production at WD’s Yokkaichi and Kitakami Joint Venture Flash Facilities in Japan Returned to Normal Operations

Western Digital Corp. provided an update on the production status of its joint venture flash memory manufacturing facilities with Toshiba and outlook for 3FQ22.

Production at both its Yokkaichi and Kitakami joint venture flash fabrication facilities returned to normal operations in late February 2022.

Flash availability will be reduced by approximately 7EB, which will occur predominately in its 3FQ22 and 4GQ22, as the facilities ramp back to full production output.

The manufacturer also updated its fiscal third quarter 2022 outlook.

(1) Non-GAAP gross margin outlook excludes stock-based compensation expense and charges associated with contamination of certain material used in manufacturing processes that affected production operations at joint venture flash fabrication facilities in Yokkaichi and Kitakami, Japan, and other adjustments, totaling approximately $250 million to $270 million. The company’s non-GAAP diluted earnings per share also excludes amortization of acquired intangible assets; stock-based compensation expense; employee termination, asset impairment and other charges; and non-cash economic interest expense associated with its convertible notes, totaling approximately $120 million to $130 million. In the aggregate, non-GAAP diluted earnings per share outlook excludes items totaling $370 million to $400 million as well as related tax impacts or adjustments. The timing and amount of these charges or adjustments excluded from non-GAAP gross margin and non-GAAP diluted earnings per share cannot be further allocated or quantified with certainty. Additionally, the timing and amount of additional charges the company excludes from its non-GAAP diluted earnings per share are dependent on the timing and determination of certain actions and cannot be reasonably predicted. Accordingly, full reconciliations of non-GAAP gross margin and non-GAAP diluted earnings per share to the most directly comparable GAAP financial measures (gross margin and diluted earnings per share, respectively) are not available without unreasonable effort.