The top line fell by 16% due to supply chain constraints and delays in customer acceptance, which resulted in significantly higher levels of backlog, particularly in Compute, HPC & MCS, and Storage. Further, the company will not provide guidance for Q3 or full-year due to the increased level of uncertainty of the pandemic.
The board of directors approved a Cost Optimization and Prioritization Plan to prioritize investments and realign resources to areas of growth: Three-year plan, to be implemented through the fiscal year 2022; Estimated gross savings of at least $1 billion and annualized net run-rate savings of at least $800 million; and Expected cash funding payments of $1-1.3 billion.
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