Seagate Technology Holdings plc, today reported financial results for its fiscal first quarter ended September 29, 2023. "Seagate's first quarter results were in line with our revised expectations. During a longer-than-typical downcycle we have prioritized financial discipline, positive free cash flow generation and execution on our HAMR product roadmap, which will extend our industry leadership in areal density and improve the total cost of ownership for our customers," said Dave Mosley, Seagate's chief executive officer. "With indications that demand fundamentals in certain markets are starting to improve, including a modest uptick in U.S. cloud, Seagate is well positioned to enhance profitability and capture attractive long-term opportunities for Mass Capacity storage."

Quarterly Financial Results
During the fiscal first quarter the Company generated $127 million in cash flow from operations, $57 million in free cash flow, and returned $145 million of capital to shareholders through its quarterly dividend. Additionally, the Company issued $1.5 billion convertible notes due 2028 bearing an interest rate of 3.5% with the proceeds primarily used to retire the outstanding balance on its remaining term loans. As of the end of the quarter, cash and cash equivalents totaled $795 million, and there were 209 million ordinary shares issued and outstanding.Quarterly Cash Dividend
The Board of Directors of the Company (the "Board") declared a quarterly cash dividend of $0.70 per share, which will be payable on January 9, 2024 to shareholders of record as of the close of business on December 21, 2023. The payment of any future quarterly dividends will be at the discretion of the Board and will be dependent upon Seagate's financial position, results of operations, available cash, cash flow, capital requirements and other factors deemed relevant by the Board.

Business Outlook
The business outlook for the fiscal second quarter 2024 is based on our current assumptions and expectations; actual results may differ materially, as a result of, among other things, the important factors discussed in the Cautionary Note Regarding Forward-Looking Statements section of this release.

The Company is providing the following guidance for its fiscal second quarter 2024:

• Revenue of $1.55 billion, plus or minus $150 million
• Non-GAAP (loss) per share of $(0.10), plus or minus $0.20

Guidance regarding non-GAAP (loss) per share excludes known pre-tax charges related to estimated share-based compensation expenses of $0.14 per share.

We have not reconciled our non-GAAP (loss) per share guidance for fiscal second quarter 2024 to the most directly comparable GAAP measure, other than estimated share-based compensation expenses, because material items that may impact these measures are out of our control and/or cannot be reasonably predicted, including, but not limited to, accelerated depreciation, impairment and other charges related to cost saving efforts, net (gain) loss recognized from early redemption of debt, purchase order cancellation fees, strategic investment losses (gains) or impairment charges, income tax adjustments on these measures, and other charges or benefits that may arise. The amounts of these measures are not currently available but may be material to future results. A reconciliation of the non-GAAP (loss) per share guidance for fiscal second quarter 2024 to the corresponding GAAP measures is not available without unreasonable effort. A reconciliation of our historical non-GAAP financial measures to their nearest GAAP equivalent is contained in this release.