Saturday, August 1st 2015
Seagate Reports Fiscal Third Quarter 2015 Results
Seagate Technology plc today reported financial results for the third quarter of fiscal year 2015 ended April 3, 2015. For the third quarter, the Company reported revenue of approximately $3.3 billion, gross margin of 28.7%, net income of $291 million and diluted earnings per share of $0.88. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported gross margin of 28.9%, net income of $357 million and diluted earnings per share of $1.08. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial tables.
During the third quarter, the Company generated approximately $374 million in operating cash flow, paid cash dividends of $176 million and repurchased approximately 12 million ordinary shares for $706 million. Year to date, the Company has returned approximately $1.4 billion to shareholders in dividend and stock redemptions. Cash, cash equivalents, restricted cash, and short-term investments totaled approximately $2.6 billion at the end of the quarter.
"In light of dynamic market conditions this quarter we are quite satisfied with our operational performance and ability to return value to shareholders," said Steve Luczo, Seagate's chairman and chief executive officer. "Near-term macro uncertainty is affecting certain areas of our addressable market however we remain optimistic that market demand for exabytes of storage will continue to increase over the long-term. Looking ahead, we are focused on aligning our storage technology portfolio effectively to capitalize on market growth opportunities, demonstrating operating profitability and returning value to shareholders."
Quarterly Cash Dividend
The Board of Directors has approved a quarterly cash dividend of $0.54 per share, which will be payable on May 15, 2015 to shareholders of record as of the close of business on May 1, 2015. 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.
During the third quarter, the Company generated approximately $374 million in operating cash flow, paid cash dividends of $176 million and repurchased approximately 12 million ordinary shares for $706 million. Year to date, the Company has returned approximately $1.4 billion to shareholders in dividend and stock redemptions. Cash, cash equivalents, restricted cash, and short-term investments totaled approximately $2.6 billion at the end of the quarter.
"In light of dynamic market conditions this quarter we are quite satisfied with our operational performance and ability to return value to shareholders," said Steve Luczo, Seagate's chairman and chief executive officer. "Near-term macro uncertainty is affecting certain areas of our addressable market however we remain optimistic that market demand for exabytes of storage will continue to increase over the long-term. Looking ahead, we are focused on aligning our storage technology portfolio effectively to capitalize on market growth opportunities, demonstrating operating profitability and returning value to shareholders."
Quarterly Cash Dividend
The Board of Directors has approved a quarterly cash dividend of $0.54 per share, which will be payable on May 15, 2015 to shareholders of record as of the close of business on May 1, 2015. 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.
12 Comments on Seagate Reports Fiscal Third Quarter 2015 Results
I'd personally like to see Seagate's profits diminish and its advantage steadily decline into nothing. WD is no angel, but they have a marketing strategy that makes info clear yet informative for consumers, better defined warranty, as well as drives that cover more usage scenarios. Seagate seems to have forgotten that SSDs exist after the Seagate 600 series, which is pretty hard to find and faded into oblivion.
And with the recent developments regarding WD "OEM" drives, I can't really argue WD's warranty is "well-defined" anymore...
Hitachi owning HGST was back prior to 2011 I think, but I know for a fact that Dell tends to go with Seagate. HP isn't so clear.
Their hybrid drives are also basically still an HDD in performance. They really are pretty sucky. In the laptop space, SRT 16GB/32GB mSATA + HDD is becoming more widespread instead, where a hybrid drive would usually be dominant in value. And that kind of SRT configuration would probably still be superior to hybrid drives, given that Seagate's hybrid drives have like, 8GB of SSD cache, which would probably be too slow to use in an SSD.
You basically need a large porn collection that you'll never view in your lifetime. Count me out. :P