I’d like to share my perspective on the MOFCOM announcement issued yesterday by Western Digital Corporation and what it means for HGST.
MOFCOM previously made WDC aware of two areas of concern they had relative to compliance with the “hold separate.” WDC quickly responded with a proposal to address their concerns and yesterday’s announcement was confirmation that MOFCOM has officially accepted the proposed resolutions. This is good news because MOFCOM is now focused on reviewing the application to lift hold separate. However, I want to emphasize that we don’t have a decision from them yet and timing of a potential response is uncertain. Relative to our obligations under the hold separate directive, nothing has changed and we must continue to fully comply.
Regardless of any decision by MOFCOM, however, it’s important that each of us remain focused on executing our 2014 playbook as we close out the year. HGST’s ongoing success requires that we continue to efficiently execute our business strategy and plans.
We have made considerable progress this year and I’m proud of the exceptional teamwork and collaboration that is allowing us to win in the marketplace. Your ability to stay focused and thrive in change is inspiring, and I want to personally thank you for everything you do.
We will keep you updated as we move through the process with MOFCOM.
-Mike
December 10, 2014