Summary
Seagate Technology Holdings plc's (STX) 10-Q filing for the quarter ended October 2, 2015, reveals a significant decline in revenue and net income compared to the prior year's quarter. Revenue dropped from $3.785 billion to $2.925 billion, and net income plummeted from $381 million to $34 million. This decline is attributed to a decrease in unit shipments and price erosion in the disk drive market. Despite the revenue drop, the company reported a substantial operating cash flow of $824 million, driven by improvements in accounts receivable and payable management. Seagate also continued its aggressive share repurchase program, spending $983 million during the quarter, and declared a dividend of $0.54 per share. The company also announced a new restructuring plan involving the reduction of approximately 1,000 employees, incurring a charge of $59 million.
Financial Highlights
54 data points| Revenue | $2.92B |
| Cost of Revenue | $2.24B |
| Gross Profit | $689.00M |
| R&D Expenses | $328.00M |
| SG&A Expenses | $182.00M |
| Operating Expenses | $2.84B |
| Operating Income | $86.00M |
| Interest Expense | $47.00M |
| Net Income | $34.00M |
| EPS (Basic) | $0.11 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 302.00M |
| Shares Outstanding (Diluted) | 308.00M |
Key Highlights
- 1Revenue declined significantly year-over-year, falling from $3.785 billion to $2.925 billion, driven by lower unit shipments and price erosion.
- 2Net income experienced a sharp decrease from $381 million in the prior year's quarter to $34 million in the current quarter.
- 3Operating cash flow remained strong at $824 million, bolstered by effective management of working capital, particularly accounts receivable and payable.
- 4The company repurchased $983 million of its ordinary shares during the quarter, demonstrating a continued commitment to returning capital to shareholders.
- 5A new restructuring plan was announced, involving the reduction of approximately 1,000 employees and resulting in a $59 million charge for employee termination costs.
- 6Seagate declared a cash dividend of $0.54 per share, indicating continued commitment to shareholder returns despite revenue challenges.
- 7The company completed the acquisition of Dot Hill Systems Corp. for approximately $696 million in cash, signaling strategic expansion into cloud storage systems.