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10-QPeriod: Q2 FY2014

Seagate Technology Holdings plc Quarterly Report for Q2 Ended Dec 27, 2013

Filed January 28, 2014For Securities:STX

Summary

Seagate Technology Holdings plc (STX) reported its quarterly results for the period ending December 27, 2013. The company generated $3.528 billion in revenue, a slight decrease of 4% compared to the same quarter in the prior year, primarily due to lower unit shipments. Despite the revenue dip, gross margins remained stable at 28%, reflecting a balance between pricing and product mix. Key financial activities during the quarter included significant share repurchases totaling $1.52 billion and the issuance of $800 million in senior notes. The company also announced its intention to acquire Xyratex Ltd. for approximately $374 million. While operating expenses, particularly in product development and marketing/administrative areas, saw an increase, the company maintained profitability. The balance sheet reflects a strengthening cash position, with cash and cash equivalents increasing substantially, driven by strong operating cash flow and debt issuance.

Financial Highlights

55 data points
Beta

Revenue

$3.53B

0.3% Gross Margin

Net Income

$428.00M

0.1% Net Margin

EPS (Diluted)

$1.24

Total Assets

$8.89B

Cash & Equivalents

$2.29B

Free Cash Flow

$713.00M

Financial Statements
Beta
Revenue$3.53B
Cost of Revenue$2.54B
Gross Profit$987.00M
R&D Expenses$312.00M
SG&A Expenses$190.00M
Operating Expenses$3.08B
Operating Income$444.00M
Interest Expense$49.00M
Net Income$428.00M
EPS (Basic)$1.27
EPS (Diluted)$1.24
Shares Outstanding (Basic)336.00M
Shares Outstanding (Diluted)346.00M

Key Highlights

  • 1Revenue for the quarter was $3.528 billion, a decrease of 4% year-over-year, primarily driven by lower unit shipments.
  • 2Gross margin remained stable at 28% of revenue, indicating a consistent pricing environment and product mix.
  • 3The company repurchased approximately $1.52 billion of its ordinary shares in the quarter, demonstrating a commitment to returning capital to shareholders.
  • 4Seagate issued $800 million in 3.75% Senior Notes due November 2018 to strengthen its financial position.
  • 5The company announced an agreement to acquire Xyratex Ltd. for approximately $374 million, a move aimed at expanding its business.
  • 6Cash and cash equivalents increased significantly to $2.293 billion, up from $1.708 billion at the beginning of the fiscal year, bolstered by operating cash flow and debt proceeds.
  • 7Product development expenses increased by 13% year-over-year, reflecting continued investment in storage technologies and headcount.

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