Summary
Seagate Technology Holdings plc (STX) reported $1.555 billion in revenue for the third quarter of fiscal year 2024, a decrease of 17.6% year-over-year. The company's net loss widened to $19 million, or $0.09 per diluted share, compared to a net loss of $33 million in the prior year's quarter. Despite the revenue decline, the gross margin improved significantly to 23% from 13% in the prior year quarter, driven by the absence of prior-period order cancellation fees and reduced factory underutilization charges. Financially, Seagate ended the quarter with $787 million in cash and cash equivalents. The company generated $296 million in operating cash flow for the first six months of the fiscal year, underscoring its ability to manage cash flow despite market challenges. Management highlighted a gradual recovery in the U.S. cloud market and continued cost discipline as key factors influencing performance. Looking ahead, the company anticipates continued macroeconomic headwinds but expects early signs of industry-wide demand recovery.
Financial Highlights
54 data points| Revenue | $1.55B |
| Cost of Revenue | $1.19B |
| Gross Profit | $362.00M |
| R&D Expenses | $161.00M |
| SG&A Expenses | $108.00M |
| Operating Expenses | $1.43B |
| Operating Income | $124.00M |
| Interest Expense | $84.00M |
| Net Income | -$19.00M |
| EPS (Basic) | $-0.09 |
| EPS (Diluted) | $-0.09 |
| Shares Outstanding (Basic) | 209.00M |
| Shares Outstanding (Diluted) | 209.00M |
Key Highlights
- 1Revenue for the quarter was $1.555 billion, down 17.6% year-over-year, reflecting broad-based demand slowdown due to macroeconomic conditions.
- 2The company reported a net loss of $19 million ($0.09 per diluted share) for the quarter, compared to a net loss of $33 million in the same period last year.
- 3Gross margin improved substantially to 23% from 13% year-over-year, benefiting from the absence of prior-period order cancellation fees and reduced factory underutilization charges.
- 4Operating cash flow for the six months ended December 29, 2023, was $296 million, indicating healthy cash generation from operations.
- 5Cash and cash equivalents stood at $787 million as of December 29, 2023, providing a solid liquidity position.
- 6The company experienced a net gain of $30 million from the sale and leaseback of certain property, which contributed to the positive restructuring and other net results for the quarter.
- 7Seagate continues to manage debt, with $5.7 billion in long-term debt outstanding as of December 29, 2023, and has a $1.5 billion revolving credit facility available.