In April 2024, the Company sold certain intellectual property, equipment and other assets related to the design, development and manufacture of its SoC products to Avago Technologies International Sales Pte. Limited for $600 million. This represents a strategic shift in the company's focus.

In January 2024, the Company established Singapore as its principal executive offices to better align its operational footprint, indicating a shift in management and strategic focus.

The company continued to exercise cost discipline and implement pricing actions to improve operational efficiency and profitability, indicating a focus on profitability and efficient operations.

Demand recovery for high capacity nearline drives has been faster than anticipated, which has extended product lead times and led to tighter overall supply conditions, indicating challenges in meeting demand.

As production lead-times extended, the company began requiring longer term demand forecasts and commitments from customers, with potential cancellation charges, to improve supply predictability.

We are focused on increasing workforce flexibility and scalability, and improving overall competitiveness by leveraging our global capabilities, as well as external talent and skills, worldwide.

The company acknowledges the risk associated with reduced, delayed, loss of or canceled purchases by key customers, including large hyperscale data center companies and CSPs, which could significantly impact revenues and results of operations.

The company acknowledges risks related to corporate and social responsibility that could adversely affect reputation and performance, including environmental stewardship, sustainability, and workplace conduct.

Shortages or delays in the receipt of, or cost increases in, critical components, equipment or raw materials necessary to manufacture our products, as well as reliance on single-source suppliers, may affect our production and development of products and may harm our operating results.

The company faces intense competition from HDD and SSD manufacturers, and companies that provide storage subsystems, including electronic manufacturing services and contract electronic manufacturing.

The company operates in a market characterized by price declines for data storage products with comparable capacity, performance and feature sets, which could harm the company's ability to compete.

Success in our industry has been dependent to a large extent on the ability to balance the introduction and transition of new products with time-to-volume, performance, capacity and quality metrics at a competitive price, level of service and support that our customers expect.

Due to customer inventory adjustments, the company experienced a slowdown in demand for its products, particularly in the mass capacity markets, leading to factory underutilization charges in fiscal years 2024 and 2023.

We are focused on increasing workforce flexibility and scalability, and improving overall competitiveness by leveraging our global capabilities, as well as external talent and skills, worldwide.

Our restructuring efforts and other measures to reduce costs may not yield the intended benefits and may be unsuccessful or disruptive to our business operations which may materially and adversely affect our financial results.

As part of our launch of the Mozaic hard drive platform, we are transitioning to key areal density recording technologies that use HAMR technology to increase HDD capacities.

We are committed to developing new component technologies, products, alternative storage technologies inclusive of systems, software and other innovative technology solutions to support emerging applications in data use and storage.

Our advanced technology integration effort, such as our high-capacity enabling HAMR technology, focuses disk drive and component research on recording subsystems, including read/write heads and recording media; market-specific product technology; and technology we believe may lead to new business opportunities.

We issued $1.5 billion of exchangeable notes to primarily retire our term loans of $1.3 billion, indicating a shift in capital structure.

We paid $585 million in dividends, showing a commitment to returning capital to shareholders.

Our previously announced share repurchase program was paused in the December 2022 quarter, remained paused through the end of fiscal year 2024 and there are no assurances as to if and when the program will resume.

We have established an environmental management system and continually review and update our environmental policies and standard operating procedures for our operations worldwide as needed.

One of our core values is inclusion. We rely on our diverse workforce to develop, deliver and sustain our business strategy to achieve our goals.

All our manufacturing sites have health and safety management systems certified to the International Organization for Standardization (“ISO”) 45001 standard.

During fiscal year 2024, we experienced ongoing recovery within the global cloud market, reflecting continued improvement in end-market demand.

We believe that we are in the early stage of an industry-wide demand recovery and AI application deployment, however we expect the macroeconomic environment to remain dynamic and continue to impact our business and results of operations.

Our business is subject to various laws, regulations and governmental policies that may cause us to incur significant expense or adversely impact our results of operations and financial condition.