Summary
Seagate Technology Holdings plc reported revenue of $2.63 billion for the September 2017 quarter, a sequential increase from $2.41 billion in the prior quarter and a decrease from $2.80 billion in the same quarter last year. The company shipped 70 exabytes of HDD storage capacity, up from 62 exabytes sequentially and slightly up from 67 exabytes year-over-year, indicating a growing demand for higher capacity storage. Gross margin remained stable at 28% sequentially but saw a slight decline from 29% year-over-year, impacted by price erosion despite efforts in product mix optimization and cost savings from restructuring. Net income for the quarter was $181 million, a significant improvement from $114 million in the previous quarter, driven by higher revenue and controlled operating expenses. The company continued its commitment to shareholder returns, repurchasing $166 million of shares and paying $184 million in dividends, underscoring a focus on capital return alongside operational execution. Seagate's liquidity position remains strong with $2.3 billion in cash and cash equivalents, supported by a $700 million revolving credit facility, though the company faces ongoing risks related to global economic conditions and pricing pressures in the disk drive market.
Financial Highlights
52 data points| Revenue | $2.63B |
| Cost of Revenue | $1.90B |
| Gross Profit | $736.00M |
| R&D Expenses | $263.00M |
| SG&A Expenses | $145.00M |
| Operating Expenses | $2.38B |
| Operating Income | $255.00M |
| Interest Expense | $61.00M |
| Net Income | $181.00M |
| EPS (Basic) | $0.62 |
| EPS (Diluted) | $0.62 |
| Shares Outstanding (Basic) | 290.00M |
| Shares Outstanding (Diluted) | 292.00M |
Key Highlights
- 1Revenue for the September 2017 quarter was $2.63 billion, up 9.4% sequentially from $2.41 billion but down 6.0% year-over-year from $2.80 billion.
- 2HDD storage capacity shipped increased to 70 exabytes, up from 62 exabytes in the prior quarter and 67 exabytes in the year-ago quarter.
- 3Gross margin remained steady at 28% sequentially, but declined slightly from 29% in the year-ago quarter, impacted by price erosion.
- 4Net income improved significantly to $181 million from $114 million in the prior quarter, and $167 million in the year-ago quarter.
- 5The company returned $350 million to shareholders through $166 million in share repurchases and $184 million in dividends during the quarter.
- 6Operating expenses, including product development and marketing/administrative, have been reduced compared to the prior year, largely due to ongoing restructuring efforts.
- 7Seagate maintained a strong liquidity position with $2.29 billion in cash and cash equivalents as of September 29, 2017.