What is the impact of the Thailand floods on Seagate's operations?

The severe flooding in Thailand has caused significant disruptions to the industry's supply chain. While Seagate's own factories in Thailand are operational, some of their component suppliers are facing disruptions. The company expects a substantial impact on production levels over multiple quarters due to these extensive supply constraints.

What is the status of the acquisition of Samsung's hard disk drive assets?

Seagate entered into an Asset Purchase Agreement with Samsung on April 19, 2011, to acquire certain hard disk drive assets. The European Commission has approved the acquisition, and Seagate is working with other regulatory bodies. The transaction is expected to close by the end of the calendar year 2011.

How did Seagate perform in terms of revenue and profitability this quarter?

For the quarter ended September 30, 2011, Seagate reported revenue of $2.811 billion and a net income of $140 million. Gross margin remained stable at 20% compared to the prior year, though slightly up from the previous quarter's 19%.

What is Seagate doing to return value to shareholders?

During the September 2011 quarter, Seagate repurchased 9.1 million ordinary shares for $128 million under its share repurchase programs and paid $78 million in dividends to shareholders.

STX 10-Q Quarterly Report Q1 FY2012 — Revenue, Net Income, EPS

Summary

Seagate Technology Holdings plc reported $2.811 billion in revenue for the fiscal quarter ending September 30, 2011, a slight decrease from the previous quarter but an increase compared to the same period last year. The company generated $140 million in net income and $160 million in operating cash flow. Despite market demand growth in disk drives across enterprise, client compute, and client non-compute segments, Seagate experienced a slight share loss in enterprise and client compute markets. A significant factor impacting the industry is the severe flooding in Thailand, which is disrupting component suppliers and expected to affect production levels for multiple quarters. Seagate is progressing with its acquisition of Samsung's hard disk drive assets, with regulatory approvals advancing and the transaction expected to close by the end of the calendar year.

Financial Highlights

53 data points

Beta

Revenue

$2.81B

0.2% Gross Margin

Net Income

$140.00M

0.0% Net Margin

EPS (Diluted)

$0.32

Total Assets

$8.73B

Cash & Equivalents

$2.47B

Free Cash Flow

-$58.00M

Financial Statements

Beta

Revenue	$2.81B
Cost of Revenue	$2.26B
Gross Profit	$549.00M
R&D Expenses	$208.00M
SG&A Expenses	$105.00M
Operating Expenses	$2.58B
Operating Income	$236.00M
Interest Expense	$69.00M
Net Income	$140.00M
EPS (Basic)	$0.33
EPS (Diluted)	$0.32
Shares Outstanding (Basic)	421.00M
Shares Outstanding (Diluted)	433.00M

Key Highlights

1Revenue for the September 2011 quarter was $2.81 billion, with net income of $140 million.
2The company shipped 50.7 million units, with total available market (TAM) for hard disk drives estimated at 177 million units, an increase from the prior year.
3Gross margin remained stable at 20%, despite increased component costs for rare earth metals.
4Significant supply chain disruption is anticipated due to severe flooding in Thailand affecting component suppliers.
5Seagate is on track to close the acquisition of Samsung's hard disk drive assets by the end of calendar year 2011, with European Commission approval obtained.
6Operating cash flow was $160 million, while capital expenditures were $218 million.
7Shareholder returns included $128 million in share repurchases and $78 million in dividends.

Seagate Technology Holdings plc Quarterly Report for Q1 Ended Sep 30, 2011

Summary

Financial Highlights

Key Highlights

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