Summary
Seagate Technology Holdings plc's 10-K filing for the fiscal year ended July 2, 2021, demonstrates a company operating in a dynamic data storage market. The report highlights Seagate's core business in Hard Disk Drives (HDDs) while also emphasizing its expansion into Solid State Drives (SSDs) and its innovative Lyve edge-to-cloud data platform. The company is strategically positioning itself to capitalize on the exponential growth of data generation, driven by trends like 5G, IoT, AI, and the increasing demand for high-capacity storage in hyperscale data centers and cloud environments. Financially, Seagate reported a revenue of $10.7 billion and a net income of $1.3 billion for FY21. The company maintained a gross margin of 27%, reflecting efforts to offset price erosion and increased logistics costs. Seagate continues to return value to shareholders through significant share repurchases ($2.0 billion in FY21) and dividends ($649 million in FY21). The company's balance sheet shows a substantial debt load, but its liquidity position remains solid with significant cash and cash equivalents and an available revolving credit facility.
Financial Highlights
56 data points| Revenue | $10.68B |
| Cost of Revenue | $7.76B |
| Gross Profit | $2.92B |
| R&D Expenses | $903.00M |
| SG&A Expenses | $502.00M |
| Operating Expenses | $9.19B |
| Operating Income | $1.49B |
| Interest Expense | $220.00M |
| Net Income | $1.31B |
| EPS (Basic) | $5.43 |
| EPS (Diluted) | $5.36 |
| Shares Outstanding (Basic) | 242.00M |
| Shares Outstanding (Diluted) | 245.00M |
Key Highlights
- 1Revenue for fiscal year 2021 was $10.7 billion, with a net income of $1.3 billion, resulting in diluted EPS of $5.36. Operating cash flow was $1.6 billion.
- 2The company shipped 535 exabytes of HDD storage capacity in FY21, a significant increase from 442 exabytes in FY20, indicating strong demand for mass capacity storage solutions.
- 3Mass capacity storage now represents 60% of revenue, up from 53% in FY20, while legacy markets decreased to 32% from 39%, reflecting a strategic shift towards higher-growth areas.
- 4Seagate returned $2.0 billion to shareholders through share repurchases and paid $649 million in dividends during FY21, demonstrating a commitment to shareholder returns.
- 5The company has a robust liquidity position with $1.2 billion in cash and cash equivalents and $1.725 billion available under its senior unsecured revolving credit facility.
- 6Product development expenses decreased by 7% in FY21 compared to FY20, largely due to headcount reductions from restructuring efforts and reduced travel expenses.
- 7Seagate is investing in its Lyve portfolio, a platform designed to manage massive data volumes across distributed enterprises, signaling a move into more comprehensive data solutions.