Western Digital Corporation’s quarterly results have been announced, and HGST made a solid contribution to WDC Q4 earnings. During the fourth quarter, HGST achieved $1.6 billion in revenue on shipments of 23.8 million units, up slightly on both measures from Q3. Our gross margin was 31.1% in the fourth quarter, compared to 32% in Q3.
As I said last quarter, fiscal Q3 and Q4 is a time of typical seasonal slowness. We worked hard to make our numbers, and turned in a solid financial performance for this six-month period. Despite the short-term challenges, our results show that we are consistently executing our plans both financially and from a market perspective. Congratulations and thank you.
I’m pleased to announce that we are funding the short term incentive (STI) program at 100%. As you know, the funding percentage is just one factor in determining final STI award payments. Individual payments are determined primarily by each employee’s performance (results + behaviors). Payouts will begin in August, based on local payroll schedules, and you’ll find all the details on HiWire’s HR page.
For more highlights from recent months, be sure to participate in the quarterly meetings. If you were not able to attend Steve Milligan’s WDC Global Team Meeting, a video replay will be posted to HiWire on Monday of next week. HGST quarterly town halls begin this week in San Jose and will reach employees across the world in the coming weeks.
Fiscal year 2015 has begun, and I’m looking forward to the many opportunities of the new year. Transforming our business is hard work and I want to thank everyone for rising to the challenge, driving innovation, executing well, serving our customers and embracing change.
Best regards,
Mike