Summary
Seagate Technology Holdings plc reported strong financial results for the second quarter and first half of fiscal year 2022, ending December 31, 2021. Revenue reached $3.1 billion for the quarter and $6.2 billion for the six-month period, demonstrating significant year-over-year growth, particularly driven by increased shipments in mass capacity storage. Net income for the quarter was $501 million, resulting in diluted earnings per share of $2.23, a substantial increase from the prior year's $1.12. The company also maintained a solid operating cash flow of $521 million for the quarter. Despite ongoing supply chain challenges and increased logistics costs related to the COVID-19 pandemic, Seagate has effectively managed its operations and financial position. The company also strengthened its balance sheet by issuing $1.2 billion in long-term debt while continuing its share repurchase program and dividend payments.
Key Highlights
- 1Revenue increased to $3.1 billion for the three months ended December 31, 2021, and $6.2 billion for the six months ended December 31, 2021, up significantly from the prior year periods.
- 2Net income for the quarter was $501 million, with diluted EPS of $2.23, compared to $280 million and $1.12 in the prior year quarter.
- 3Operating cash flow for the six months ended December 31, 2021, was $1.0 billion, indicating strong cash generation.
- 4The company secured $1.2 billion in new long-term debt financing, which was used in part to repay outstanding debt.
- 5Seagate continued to return capital to shareholders through $151 million in dividends and $471 million in share repurchases during the quarter.
- 6Despite supply chain disruptions and increased costs related to the COVID-19 pandemic, the company maintained a gross margin of 30% for the quarter.