Western Dig revenues take $0.82bn spanking from US tax shake-up

Drive-shipper Western Digital reported record revenues in its second quarter but new US tax laws dragged it into a $0.82bn net loss. Revenues were $5.3bn, 8.4 per cent higher than a year ago, and just 2.3 per cent up on the previous quarter. There was a GAAP net loss of $823m, which, WDC said, "includes a provisional net tax …

[Yet Another Anonymous coward]

Why are they western?

Obvious question - why are they an American registered corporation anyway?

They manufacture in SE Asia, they sell world wide, they don't have any particular public image or military contracts and none of their competitors are particularly american.

I now how difficult it is to raise VC money or IPO in America if you aren't Delaware registered and I can picture the political and consumer backlash if eg Apple relocated to Bermuda or Singapore - but why are commodity HW manufacturers sticking with the land of the free ?

[Anonymous Coward]

Re: Why are they western?

Why should they move? The US has switched to a territorial system for corporate taxes like everyone else in the world now, so they will only pay US taxes on money they make in the US. There was reason to move before, to avoid paying taxes on non-US income. Now that's no longer true, so what's their incentive for moving to another country?

[Anonymous Coward]

Re: Why are they western?

@DougS willfully ignored the possibility of the perfectly reasonable question applying as much in the past as in the exact present instant and near term future.

Why WERE they an American registered corporation up to last year anyway?

[Do Not Fold Spindle Mutilate]

Re: Why are they western?

The reason companies register in the US is because that is where the investers put their money. If a company wants to build a new plant and needs money the US with all of those Wall Street brokers can find you the money. It may be shares, bonds or other types such as a separate company which builds buildings to lease to you, separate companies which will lease machinery. Thus the only money up front which you need is for the new specialized equipment allowing an expansion to be riskier buy initially cheaper. Money comes from all over the world to the US to be invested so if you want investment money go to where it is which is the US.