STX
#Hi, <UNK>, this is <UNK>.
As we think about heading into the back half of the year, obviously first and foremost we're going to continue to invest in our business ourselves.
As we stated, as we look at some of these one-time costs, restructuring, cash charge specifically around the $150 million, we think that's very manageable over a generation, and what we're able to yield here, again, over the next six to nine months.
Then as far as the dividend, we think that is well manageable, albeit at the higher end of those levels of a pay-out ratio, and obviously up to the Board of Directors.
With that said, we feel that it's very defendable against what we're able to generate moving forward.
I think in the near term, <UNK>, meaning the next six to 12 months, though, the considerations clearly go invest in the business, because we do feel we have technology and product leads across the portfolio that we really want to execute to.
As long as the macro environment stays ---+ I won't say decent, because I don't know that I can call today decent ---+ but as long as it stays like it is today with that product execution, we feel pretty good about the Company's position competitively.
Then in terms of what we would do with that cash flow, again, I think defending the dividend is the first thing that we would do.
We would certainly like to keep the dividend level where it is.
Initially, obviously these are pay-out ratios above the 30% and 50% that we had indicated.
But if the Company's growing into that with improving revenues and margins, then certainly we would put the Company in position where the Board has at least hopefully an easier decision to make than if it were the other way around.
I think in terms of buy-backs, whether or not it's debt or equity, for the near term that's probably not going to be the use of cash.
It will probably be if there's excess cash we would keep it on the balance sheet, just in case the macro situation turns on us, as we had more confidence about a 2017 outlook, and again, the success of our products.
Then we would re-evaluate that in terms of what's the best use of it beyond dividend or going on the balance sheet.
Yes, Eric, thanks.
We talked about it wasn't worth guessing right now to provide you some guidance.
I think I would prefer just for us to get through this next 60 days of really understanding the changes we're going to be making to the operational footprint with related OpEx investments, because the reality is depending on which decisions we make, there's different timing implications.
Some of the things we can get after right away, as <UNK> mentioned, but others, they're really a function of product transitions, customer quality issues, regulatory issues, et cetera.
I think it's just probably not worth guessing at this point.
I think as we get more clarity on the specific actions we're taking, we'll get back to you.
If the question is do we think, though, that we still get back into that range in a reasonable period of time, the answer is yes, we think we can work ourselves back into the range.
But we just ---+ we want to get a little more work done before we give you an idea of when that's going to happen in terms of in this quarter.
As you know, the ---+ our world does not work in the crisp 90-day segments that the calendar provides.
We would rather do a little more work before we lay that out for you.
Yes, I think our feeling, based on customer input, is that ---+ and I was mostly talking to the application shift, <UNK>.
The macro stuff, I'm not going to speculate on.
If it gets worse, then obviously all these markets will be under pressure.
If it gets better, all of them probably get a little bit of reprieve.
But it feels to us like the trend of where mission-critical 15K is being taken out is the point of exposure, and the 10K piece isn't, at least for now, and maybe not for quite a while based on some of our customer impact.
Our only point is that as it transitions, at some point it stabilizes.
We feel like that probably happens in the second half of this calendar year.
Okay.
All right, great everyone.
Thanks for taking the time today, and we look forward to talking next quarter.
Thanks for all your support, as well as to our customers and our suppliers, and most importantly, our employees.
Thanks very much.
