10-QPeriod: Q1 FY2014

Seagate Technology Holdings plc Quarterly Report for Q1 Ended Sep 27, 2013

Filed October 29, 2013For Securities:STX

Summary

Seagate Technology plc (STX) reported its quarterly results for the period ending September 27, 2013. Revenue for the quarter was $3.49 billion, a slight increase from the previous quarter but a decrease compared to the same period last year. Net income attributable to Seagate Technology plc was $427 million, resulting in diluted earnings per share of $1.16. The company maintained a strong operational cash flow of $682 million and ended the quarter with a healthy cash and cash equivalents balance of $1.92 billion. Key financial activities during the quarter included share repurchases totaling $182 million and dividend payments of $135 million. The company also highlighted its ongoing investments in product development, with R&D expenses remaining stable quarter-over-quarter but increasing year-over-year. Seagate continues to manage its debt obligations, with no borrowings drawn on its $500 million revolving credit facility and a focus on maintaining compliance with its financial covenants.

Financial Highlights

54 data points
Beta

Revenue

$3.49B

27.9% Gross Margin

Net Income

$427.00M

12.2% Net Margin

EPS (Diluted)

$1.16

Total Assets

$9.35B

Cash & Equivalents

$1.92B

Free Cash Flow

$521.00M

Financial Statements
Beta
Revenue$3.49B
Cost of Revenue$2.51B
Gross Profit$975.00M
R&D Expenses$294.00M
SG&A Expenses$181.00M
Operating Expenses$3.01B
Operating Income$478.00M
Interest Expense$44.00M
Net Income$427.00M
EPS (Basic)$1.20
EPS (Diluted)$1.16
Shares Outstanding (Basic)357.00M
Shares Outstanding (Diluted)368.00M

Key Highlights

  • 1Revenue for the quarter was $3.49 billion, showing sequential growth but a year-over-year decline.
  • 2Net income attributable to Seagate Technology plc was $427 million, with diluted EPS of $1.16.
  • 3Operating cash flow remained strong at $682 million.
  • 4The company returned capital to shareholders through $182 million in share repurchases and $135 million in dividends.
  • 5Cash and cash equivalents stood at $1.92 billion, indicating robust liquidity.
  • 6Product development expenses increased year-over-year, reflecting ongoing investment in technology.
  • 7Seagate maintained compliance with its debt covenants and had no outstanding borrowings on its revolving credit facility.

Frequently Asked Questions

Seagate reported revenue of $3.49 billion for the quarter ended September 27, 2013. Net income attributable to Seagate Technology plc was $427 million, resulting in diluted earnings per share of $1.16.

Seagate generated strong operating cash flow of $682 million. The company ended the quarter with $1.92 billion in cash and cash equivalents. During the quarter, it used cash for share repurchases ($182 million) and dividend payments ($135 million).

Seagate has significant long-term debt but maintained no borrowings under its $500 million revolving credit facility as of September 27, 2013. The company stated it was in compliance with all covenants under its debt agreements and revolving credit facility.

The company continued to invest in product development, with product development expenses increasing compared to the prior year's quarter, indicating a focus on R&D for storage technologies.