Picking here because we're always running short on time. It's busy. It's day one of our Global TMT Conference. Feels like the afternoon already. Really pleased here to have Irving and Kris, both as well as WDC 's IR, who are here in the audience. This is expected to be an open fireside, so we have some questions. Before we kick things off, I'd like to hand it over to WDC first for some prepared commentary.
Yes, sir.
We can kick it off with some questions. Welcome, Irving. Welcome, Kris.
Thank you. Thanks, thanks, Asha, for having us. Just before we start, today we will be making some forward-looking statements, based on management's current assumptions and expectations, including with respect to our product portfolio, business plans and performance, market trends and dynamics, and future financial results. These forward-looking statements are subject to risk and uncertainties. Please refer to our most recent financial report on Form 10-K for more information on the risks and uncertainties that could cause actual results to differ materially from expectations. We also will be making some references to non-GAAP financials, and a reconciliation of our GAAP to non-GAAP results can be found on our website. With that, turn it back to Asha.
All right. Thank you for joining us again. We'll get into all the nitty-gritties and financials and technology roadmaps, but just a high-level question first. One for Irving, one for Kris. Irving, you've been the CEO now for about nine months. What are some of the top strategic priorities as you were preparing to take this job, and how would you rank yourself relative to those priorities that you laid out?
Yeah, thanks for the question. Maybe just a quick public service announcement for those of you who may not be so familiar with us. You know, Western Digital, with the spin of our flash business, which is now SanDisk, is now a pure-play hard drive company, very focused around data storage, particularly in the cloud, given that 90% of our revenue in our most recent quarter was from the cloud. Still have 10% that's in the client and consumer space. Right. To your question, Asha, around strategic priorities, I would say there are really two broad categories. The first one was really around growth. Right. How do we drive growth? The second was around how do we strengthen the foundation of the business. In growth, there were three specific strategic initiatives that I put forward.
One was getting much more engaged with our customers, given that our business today is predominantly in the data center. It's very cloud hyperscaler-centric. How do we ensure that we're really partnering closely with our hyperscale customers to really understand the nuances of their architectures, of the specific use cases, and how hard drives are such a central part of both their cloud and AI business today and going forward. Right. We reorganized internally and have dedicated teams now for each of our top hyperscale customers across sales, product management, engineering, operations, logistics to cater to their specific needs. On that, I would say we are well on track. We're probably 80%, 90% of the way there.
I got great feedback from one of our investors yesterday who said they did checks with our customers, and they actually shared with us that our customers have seen the difference in how we're engaging with them. Second is around product leadership. We feel very comfortable that we have a market-leading industry portfolio right now, obviously, with our EPMR technology powered by UltraSMR. Also with the upcoming introduction of HAMR, we have a nice way to continue to deliver TCO benefit, the capacity that our customers want in a very scalable, reliable, and predictable way, and de-risking any technology transition for them. Third is to continue to innovate because it's not just about the drive itself.
We continue to innovate around our platforms business, which we are very relevant we see for neocloud players and also some of the OEMs as they want to take advantage of the technology and innovations that we have around our platforms business. Those are really the three growth pillars. At the foundational level, continuing the very strong focus on operational excellence we have across the company, not just within the operations teams, but making sure that every facet of the business is really focused on executing flawlessly. A lot of process re-engineering, adoption of technology, AI is going in there. Financial excellence, Kris will talk more about it. We have a very clear capital return policy that we've laid out. Last but not least, a really big focus around cultural change, driving a very strong culture of performance within the company.
We've changed incentive structures to emphasize a lot more around individual performance, driving results within the business, and really creating a degree of differentiation. In order to achieve that cultural change as well, there's been a lot of work where starting with the leadership team, like 1/3 of us were part of the existing leadership team from Western Digital before the spin. 1/3 I promoted from within the company to take on new leadership roles. 1/3 we've brought in new people, like folks like Kris [Sennesael] , finance professionals. Our new Chief Product Officer came from Microsoft, where he led a big chunk of Azure storage and was at AWS before that. Really has a deep customer understanding of how our product is being used. Same thing on the HR side. A really nice combination starting at the leadership team, but we are percolating that further down the organization.
Okay. The same for you, Kris? What brought you to WD ?
Yeah, I just crossed over 100 days at Western Digital now. I'm really blessed and happy to be part of the team. Before I joined Western Digital, I did my diligence. For me, what was really standing out was, as Irving already said, but maybe I'll summarize it in my own words, global technology leader with a very strong product roadmap. Secondly, deep customer engagements with the most innovative, successful, largest companies on the planet. To earn a seat at their table, you have to be able to create a lot of value. Third, a strong global manufacturing footprint, being able to produce millions of units each and every quarter at the highest quality, highest reliability, and delivery of our products to our customers.
When you put this all together in combination with a strong management team, you create a very strong financial business model with very strong financial output in terms of revenue and revenue growth, gross margins and operating margin expansion, and also free cash flow. Free cash flow that can be used to continue to invest in the business, as well as a shareholder-friendly capital return policy. I'm sure we'll talk more about each of those topics in the next 30 minutes.
Third quarter was very strong for you guys. I think you had revenues up 30%, much more on the bottom line. As you sit here in calendar third quarter, Irving, there were lots of puts and takes at the start of the year. There were tariffs, there was demand or thoughts of demand evaporation. As you sit here in calendar 3Q, how has, as you think back, how has demand evolved for these end markets that you're in, particularly for cloud, which is now 90% of it?
Yeah. First of all, you know, we only got one quarter at a time. Having said that, I can give you a bit of color of what we're seeing. You know, we laid out initially at our investor day a growth, a financial model where we saw baseline growth at 15% exabyte CAGR over a four-year period. That baseline growth was predominantly our analysis based on what cloud growth would be going forward. We also laid out an AI uplift case, which was 23% exabyte growth. What we're seeing right now is actually growth is trending more towards that 23% exabyte growth CAGR. Really, AI really kicking in a lot more. The conversations with our customers have evolved quite rapidly over the last year. If you go back a year, we had POs or long-term agreements with them that probably were six to nine months.
Most recently, at our last earnings call, we shared that we now have firm POs with all of our top four and LTAs with one of our top five, that span throughout our entire fiscal year 2027, and with two of them, even into the first half of fiscal year 2026, sorry. Yeah. With two of them, even into fiscal year 2027, we're now in conversations with them to see how we can enter into even longer arrangements because they've clearly seen that hard drives are central to continue to power the growth that they're seeing within AI. Just as they've been focusing on GPUs and HBMs, most recently, they're seeing that actually HDDs are going to be a critical part of the growth enabler of AI going forward. A very different set of conversations that are happening with the customers.
We see that this is probably the early innings of a multi-quarter growth cycle.
Mm-hmm. Okay. On the flip side, we're talking about strong growth. What are some of the, you know, if you think about it, obviously, you're also into risk mitigation? What could be the flip side of that strong growth that you're seeing, the puts and takes to that end demand outlook?
Yeah, I mean, there's always the concern that we experienced probably two years ago, right? It's something we have scar tissue. Having run operations at that time, I definitely have scar tissue on it. We're very prudent around that, right? Our focus is really how do we support that capacity growth that our customers want through ongoing improvements in aerial density. What I mean by that in simple terms is how do we deliver higher and higher capacity drives to them in a very scalable and reliable manner? It's not just about the highest capacity drive we can deliver, it's about being able to produce that at scale, right? Being able to deliver reliable quality products that, you know, they don't have any concerns around what's going to happen one year down the road, two years down the road, with those products.
We are continuing to invest into our head and media facilities. Those are the big drivers of aerial density. In terms of investments into our backend, which is the unit volume improvements, we continue to be very prudent around that area. If you're able to secure these longer-term commitments with our customers, which have commercial arrangements with some downside protection, we're open to exploring some moderate increases in that area.
Okay. Tariffs, we still don't have a decision, I guess, on Section 232. It was expected in the summer. I did have a question around that. Just any thoughts on, if these were to come down, where the focus would be. You have to manufacture in the U.S. to, I guess, not be as impacted by tariffs. Just some high-level thoughts on how you guys are thinking about the impact.
Right now, as you mentioned, we are not impacted by tariffs because we are classified as a semiconductor. As we all know, it's a very fluid environment. We'll see what pans out. I would say that we actually do manufacture in the U.S. today. We have two fabs in the U.S., both located in California. That's where all our head wafers are produced. As I had just previously mentioned, we are continuing to make investments into adding capacity in our head wafer capability, and that investment will come back into the U.S. as well. In terms of tariffs, our supply chain teams continue to do a lot of work in terms of how we can mitigate some of this impact. As things stand, and with some of the commercial arrangements we have with our customers, we don't anticipate any material impact to our financials with tariffs.
Okay. You talk a lot about demand visibility, which is fantastic. Just help investors. There's always a lot of nervousness around those agreements. What gives you the confidence that these agreements will come to fruition and it's not just them putting these numbers out there and it's actually real demand that will actually come to fruition?
Yeah. I mean, it's a really fair question. We obviously get multiple input sources in order to make those supply capacity decisions, not just the demand signal that we get from our customers, as we've seen in the past, right? We do use our own modeling. We have our own machine learning algorithms that we use to ascertain what the demand signal should be. Based on a triangulation of different data points, that's the investment decisions that we make, not purely the demand signal that's coming from our customers. As I mentioned, for longer-term agreements, we are in discussions to have some financial teeth to them to give us confidence to make those investments. I want to say that upfront, Kris and I always talk about it. We're not believers of take or pay, because all we're doing is creating a problem down the road.
We work very closely with our customers to understand whether there are any changes in their demand signal. We must remember, with 90% of the business with cloud and the size of these new data centers that are being built, right? We will see potentially quarter-to-quarter variability. Sometimes it's a delay, whether it's in construction or some components that they have, or sometimes they need stuff earlier because they're trying to ramp up a data center faster. I think the dynamic for customers has changed quite significantly. One of them actually said, "You are strategic to us right now." That early visibility, that sense of partnership and close engagement has fundamentally changed over the last year, I would say.
Okay. When you think about the AI, like you talked about the kicker relative to the base cloud growth, help investors understand what are those workloads that are driving the increased demand and the strategic use of HDDs here?
Over and above the cloud growth.
Sure. I would say that, if you look at AI, let's take training, for example, and it extends into inference, right? If you look at the compute resources, you look at GPUs, you look at HBMs, to some degree DRAM, those components are, you could say that they are recyclable. As they train a model, when they're done, they train the next model, they recycle those components within the data center. What we're seeing and hearing from our customers is hard drives and storage is not being recycled. What happens is when they train a model, they store not only the model, but all the associated data that was used to train the model as well. As they move to the next iteration of that model, after they finish training that model, again, they store the model and the associated data that comes with it.
In a way, there's a disconnect between what's happening on the compute side in AI and what's happening in storage going forward. It's also very important for hyperscale customers to understand that one of the things they do really well is to take advantage of the economics of storage tiering. What's the difference between tape, HDDs, and flash, and be able to use their software capabilities and the economics that are made available by those three tiers to really deliver the service that they can and be able to monetize it with the maximum return. What we're seeing is that 80% of data in a hyperscale data center is being stored on hard drives.
As they're looking to train models, what they're doing is actually buffering all that data that they need from hard drives into the flash layer so we can deliver that data at the velocity that it needs to train the model. They've really done a great job of figuring out how to basically manage the economics of the different tiers at the same time delivering the performance of data that they need to feed the GPUs.
Which is a good point because when I was at the Future Memory Summit in August, I did see a lot of that cost-efficient, maybe high-capacity SSD storage, exactly like you talked about, this tiered storage model. I think Meta was one of them who started experimenting with this, and I'm sure there's other hyperscale cloud providers there as well. When you think about the HDDs being sort of tight, as you talked about it, like you don't have excess capacity, you're trying to just mostly do this with density roadmaps. How are you thinking about the impact to HDD EV demand given these SSDs are starting to make some inroads into the data lakes, into these high storage?
Yeah, I think if you look at the Meta case that, you know, it's been going around a fair bit, it's really a very specific use case in research. If you look at QLC drives, in particular, they're very good at throughput, but they have some limitations in the sense that they degrade very quickly after a certain number of writes. They're very good at applications that require a lot of read because of the capacity and the throughput that it has. When you have to start to write to it, it starts to degrade very quickly after 1,000 writes. There's definitely a niche in terms of applications for flash. If you look at the broad scale utilization of data and how it's being continuously moved within a hyperscale data center environment, as I just mentioned, data is not static within a hyperscale data center environment.
It's constantly moving from tape to HDDs and flash. That means a lot of read and write. We still feel very comfortable that, due to the QLC limitations and the number of reads, it's not going to be a mainstream viable solution. Secondly, we're also working very aggressively to make sure that we maintain a total cost of ownership differentiation. As we laid out in our investor day, from a $1 per terabyte standpoint, that's the acquisition cost. We're very focused on maintaining a 6x delta. At our investor day, we laid out till fiscal year 2030 a roadmap that we feel very comfortable we're able to maintain the 6x delta. The 6x delta on acquisition cost translates into a 3.6x delta on total cost of ownership. Flash does have some advantage on energy consumption and space because of density.
At 3.6x delta, we work very closely with one of our large hyperscale customers to come up with that analysis. If you have a chance to look at the webcast of it, you should look at it. We had one of the chief architects from that customer as well, whose job is to really look at storage technology into the future, give a very strong testimony to say that as far as he can see, there's nothing out there that's going to replace HDD as the mainstream storage media in the data center.
Okay. We'll switch to margins in a little bit to talk to Kris, but just, you know, cloud, it's obviously the big hyperscalers, but you also do sell to enterprise OEMs that also have data centers, and whether they offer it in a cloud way to their end customers or they sell it on-prem. Just help us understand, you know, what are you seeing on demand from these enterprise OEMs?
Yeah, we're obviously seeing the bulk of the growth coming from the hyperscale cloud providers. I think on-prem IT, which OEMs predominantly, with private clouds, for example, has been, the growth has been slightly lower than that from what we've seen with the hyperscale cloud providers. I think part of it is just a more cautiousness around the macroeconomic environment. On-prem IT spend has been a bit more muted. Having said that, we are working closely with these customers, not only in terms of providing them our drives, but a few of them have also engaged with us on our platforms, basically our JBOD. It's a nice acronym called just a bunch of disks, just a bunch of drives. It's basically an enclosure where you can have 60 hard drives into it or 120 drives into it.
We now have platforms that also can convert the data output into Ethernet as well, which is something that they appreciate. That's giving them the opportunity to redeploy their resources away from having to build these platforms into other areas that can give them better return. We're seeing that very clearly, getting a lot of traction with OEM customers. We're having the same discussions with neocloud players as well because many of them don't have big infrastructure teams, like some of the more established hyperscale cloud providers do. We actually have one very large cloud customer that's already using our platforms to power a very popular social media application.
Okay. Kris, over to you, because I'm sure Irving is always asking for more dollars, but just help us understand. I mean, you have this tight balance to run between adding on incremental capacity to, you know, perhaps meet the needs of these hyperscale cloud providers, you know, which are growing. At the same time, you want to be careful about that situation. How are you kind of thinking about that, you know, tight balance that you have to run?
Yeah, no, that's indeed a very tight balance. We can continue to increase the capacity in exabytes by aerial density. That's the most important thing. There are two ways of doing that. First of all, it's by increasing the top end of our capacity per drive. As we continue to invest in our EPMR roadmap, we just brought out six months ago what we call the latest EPMR technology. We are still working on one more generation, which is probably going to be the last generation that will come out in a couple quarters from here, while we, of course, are working on HAMR as well. Driving aerial density will enable us to create a lot more exabytes and translate into more revenue. In addition to that, we are making some investments in heads and media as well to expand the capacity there.
We're working really hard on yield and OEE improvements through automation in our factories, and that creates a little bit more capacity. We're working with our suppliers in the supply chain to get some more supply as well. When you combine all of that, we feel in a good position to support the exabyte growth that we see from our customers.
Is there any mothballed capacity that you could turn on, like things that were turned off during the downturn that could possibly be brought back on? If that were to be the case, how long does it take to turn on that capacity?
Some of that is available to us, and we're working on that. You have to take into account that it might take a couple quarters to bring that online, similar with some of the CapEx that we do. It takes 12 months to produce a hard disk drive because nine months of that goes into the heads, the wafer that eventually gets into the heads. The total manufacturing lead time is 12 months.
I think people underestimate the amount of time that it takes on that front. I do get people who are surprised by it. Maybe shifting back to the technology roadmaps you talked about, you did bring up the 11-disk solution. There's another one more generation of EPMR, and you obviously have the UltraSMR on top of that as well. How do you think about your position with your key customers? I mean, are they looking at HAMR, which is going to be next, and shifting their priorities here? Just help us understand how the cloud customers make decisions.
We haven't seen that. In fact, I was just up in the Pacific Northwest with our customers two weeks ago. It's very clear our customers don't really bother whether it's EPMR or HAMR.
Sure.
Right. What they really want is, can you give me the highest capacity drive in a scalable way? What does scalable mean? At least a million units a quarter. Is it reliable? That's ultimately what they want. That's really our focus. As Kris mentioned, we feel very comfortable that we have the leading technology with our UltraSMR products. We currently are shipping up to 32 TB in that platform. We have one more iteration of that coming out in about the early part of calendar 2026. In the roadmap we laid out, it's going to be up to 36 TB. We have great engineers. They always do amazing things. Maybe we can stretch capacity points even more. We'll see about that. Customers really are taking to that because if you look at that current 32 TB drive that we're shipping, we took only two quarters to qualify that drive.
Okay.
Right. The first quarter after qualification, we shipped 800,000 units. The second quarter after qualification, which was just our most recent quarter, we shipped 1.7 million units. This quarter, we're likely to ship over 2 million units. That is the realized scalability that our customers really want. To them, it's no point saying we have a 40 TB, I could ship them a 44 TB drive today. Could I do it at that scale that we're doing? It's not ready. It's not reliable. You're not going to have the yields. It doesn't make economic sense for them and for us to do it. That is what we're really focusing on. In parallel, we're also working on HAMR.
Yep.
I would say I'm actually very pleased with where we are with the milestones that we've set from HAMR. We have a really great line of sight from the aerial density improvements that we're making on HAMR to hit that introductory 44 TB capacity point that we laid out in our roadmap. Our focus right now is ensuring that when we do bring HAMR out into the mainstream, it's reliable. It's got the same reliability as our EPMR portfolio has today. At the same time, we are focusing on manufacturing yields. As Kris mentioned, yields have been a big part of how we're able to deliver more capacity to our customers without having to put in incremental CapEx investments. Over the last three years, I would say our yields have gone from mid-60%- 70% to high 80%.
A great job by the engineering and manufacturing teams to really collaborate so that when we transition products from R&D into production, yield levels have gone up very quickly as well. That's the same thing we're looking to do for HAMR so that when we do make that transition, we are giving our customers a very risk-free transition. Almost like our approach is, and which is resonating with them, if you need, let's say, 200 EB of data in a year, we'll ship you 200 EB. It may be a combination of EPMR and HAMR, but we're just going to de-risk it for you.
Yes.
Right. That's really resonating with them.
Okay. How does that algorithm that you talked about factor into margins, like, you know, incremental margins specifically as you continue this transition towards higher density, whether it's EPMR and eventually to HAMR? Help us understand how the incremental margins could look like.
Yeah. When you think about gross margins, first of all, I'm very pleased with the progression that we've made, right? A couple of years ago, we were in the low 30s, moving to the mid-30s, moving to the high 30s, and now we have two quarters where we're in the 40s. I think there is still a gross margin progression in front of us. If you think about margins, right, it's pricing, it's cost, and it's a mix. Those things tend to evolve over time. Although when you look at the pricing side, I call it we're in a stable pricing environment, right? Pricing on a price per terabyte is kind of flat-ish in this environment on a sequential, on a year-over-year basis.
Secondly, I think we're doing a really good job at driving down the cost per terabyte, in part again by moving to higher capacity drives and leveraging the aerial density roadmap that we have. By the way, that creates a lot of value for our customers as well, right? We really create value through innovation. That value can be shared. Some of that, of course, is retained at Western Digital. Some of that continues to lower the total cost of ownership at our customers and continue to maintain or expand the leadership we have versus competing technologies, right? Of course, you have some quarters, you have mix shifts as well. Again, very pleased with where the gross margins are, in the low 40s and still further room for improvements as we continue to execute on our technology and product roadmaps.
Okay.
Maybe I just want to chime in on one thing Kris mentioned. You know, we deliver a technology called UltraSMR. It's a bit different from the rest of the industry, right? Our UltraSMR gives us a 20% capacity uplift over a standard CMR drive and a 10% capacity uplift over a standard SMR drive. That uplift is predominantly driven through software and some of the designs that we have in our technology. You don't get the associated costs with that capacity uplift. That's also a big part of both the ability to deliver higher capacity points without the associated cost that's coming from it.
And.
Extensible. When we move to, when we do transition to HAMR, that UltraSMR will also be applicable to HAMR.
Right. On the UltraSMR, I've asked some investors who are maybe newer to the Western Digital story, I've asked about, is there anything that's needed on your customers' end to enable the use of UltraSMR?
Yeah, there is some work that they need to do on the host side.
Yeah.
Some software adjustments that they need to do, but we now have three large customers, three hyperscale customers that have already qualified and adopted. Two of them have been on UltraSMR for quite a while. A third one has just qualified it and is now adopting it as well because that's a great way for them to get more bits to support the growth that they need. By the end of the calendar, 50% of the nearline bits that we're shipping will be UltraSMR. On top of that, for those customers who maybe don't have the sophistication or the capability to make those software adjustments, we're also looking to use our platforms to basically remove the need for them to do work on the host side by taking that load off in our platforms to enable a broader adoption of UltraSMR.
Okay, great. You're also getting more efficient on OpEx. Maybe you can just touch a little bit on OpEx as well, Kris?
Yeah. At the investor day in February, we lined out a model that had on or about 14% of OpEx to revenue. The last couple of quarters, we have been running below the 14% to revenue. Keep in mind this quarter, we have a 14-week quarter, so there is approximately $15 million extra OpEx that will come out next quarter. We're doing a good job at running our OpEx despite the fact that there is no hesitation. We will continue to invest in our technology and product roadmap, right? We are an innovation company. That's how we, again, create value for our customers. As revenue continues to grow, there is further leverage in the model, and you can see OpEx as a percent to revenue continue to trend down from where the current levels are.
Okay. I'm going to open it up to the audience. I have a few more questions, but if there are any burning questions in the audience, please raise your hand so we can bring the mic to you. Anyone? No? Going once, twice. All right. Along with great margins and great earnings comes great cash flow, great free cash flow. I can see Kris's eyes getting all super excited. Tell us about, you know, you've started a buyback, debt paid down, I think meaningful buybacks expected. Just help us understand, like, you know, how does that free cash flow then flow in to how we should be thinking about the buyback strategy here?
Yeah, no, you're absolutely right. Again, strong revenue growth translating into gross and operating margin expansion, but also strong free cash flow, as we discussed. That's one side. Despite the fact that we continue to invest in the business, we're not starving the business. Secondly, we have a healthy balance sheet. Post-separation or at the separation, there was a lot of debt reduction, and then post-separation, we further reduced the debt. We're now at $4.7 billion gross debt, $2.1 billion cash flow, $2.6 billion of net debt, which is on or about 1x EBITDA leverage, right? Our target range was one to one and a half. We're at the low end of that range. Also, keep in mind, we still have 7.5 million of SanDisk shares that at a certain point will get monetized as well. Healthy balance sheet, strong free cash flow. What do we do with that?
We'll continue to invest in the business for sure, but also return all the excess cash back to the shareholder through a combination of our dividend program that was initiated at $0.10 per share. There is plenty of room to grow that, and we're committed to that. Also, through our share buyback program that was initiated mid-May of 2025. In the first quarter, we repurchased $150 million just in a month and a half, and we will continue to use that program and step up from what we did prior quarter as well.
Okay. There were some discussions last earnings about the dilution from, on the shares. Just help us maybe level set for investors how we should think about the dilution on the share level and how is that offset with buybacks?
Yeah, we do have a convertible note, right? And that's way in the money, above our capped call.
Well-weighed.
As share price eventually continues to go up, there will be some accretion. High- level, I think you have to think about the share count trending sideways. Where we offset the dilution from the convert, we do have a little bit of share count creep because of SBC, although that's minimal. We will be able to offset that with our share buyback program. Until the convert will be retired, the share count will trend sideways.
Okay, that's great. Almost at one time, but if I can quickly ask you about, you know, what do you think investors are not yet fully appreciating about WD shares?
Yeah, I think one, just the way we're really focused on our customers and engaging with them very differently, across multiple functions across our company and their companies, the technology roadmap that we have, I think there's a lot of focus on a particular technology and the highest capacity point. There's not enough understanding of how do we address customer risk management concerns? How do we deliver, how are we, how we are delivering highest capacity at scale in a very reliable way that our customers are really recognizing? That shows up in the amount of bits we're shipping. That also shows up in the share that we have in our customers. I think those are the main things. As Kris mentioned, that's ultimately translating into a very strong set of financials that we are able to reward our investors much better.
Great. Any parting words from you too, Kris? You're just happy to be here.
Yes, sir. Happy to have him.
All right. That about wraps it up. Thank you to Western D here, and good luck with the rest of your meetings.
Thank you. Thank you.