Western Digital has lost lots of money in Thailand due to flood among Toshiba, Sony, Nikon, Canon. The company is now on a road to recovery.
Western Digital has restarted production ahead of schedule at one its buildings in Bang Pa-In and removed submerged slider manufacturing equipment from the Bang Pa-In facilities for assessment and decontamination.
In terms of its fiscal December outlook, Western Digital now expects significant upside with revenue of at least $1.8 billion with gross margins above the high end of its business model of 18 percent to 23 percent, implying unit shipments of about 34 million.
The vendor said it anticipates unexpected flood-related charges in Q2 to be in the region of $225m to $275m, and that HDD supply constraints will continue until at least March.
John Coyne, president and chief executive officer at Western Digital, said its Thailand operations were being reinstated faster than previously expected.
“Much work remains to be done, but we could not be more pleased with the efforts and results thus far, including tremendous support from our supply partners and strategic customers,” he said.
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