Seagate Technology plc (NASDAQ: STX) (the "Company") today reported
financial results for the quarter ended December 28, 2012. During the
fiscal second quarter, the Company reported revenue of approximately
$3.7 billion, shipping 58 million units. On a GAAP basis, Seagate
reported gross margin of 27.0%, net income of $492 million and diluted
earnings per share of $1.30. On a non-GAAP basis, which excludes the net
impact of certain items, Seagate reported gross margin of 27.6%, net
income of $523 million and diluted earnings per share of $1.38. Cash
flow from operations in the quarter was $844 million and the Company
returned $1.1 billion to shareholders in dividends and share
redemptions. Cash, cash equivalents, restricted cash, and short-term
investments totaled approximately $2.0 billion at the end of the fiscal
"Seagate is executing well in an environment where customer demand
forecasting is challenging," said Steve Luczo, Seagate's chairman,
president and chief executive officer. "Looking ahead, we will continue
to manage our business conservatively to the demand environment, focus
on profitability and effectively invest for market leadership in storage
for mobility, cloud and open source. Creating value for shareholders
remains a top priority, and in the first half of fiscal 2013, we
returned over 95% of operating cash flows through share redemptions and
For a detailed reconciliation of GAAP to non-GAAP results, see
accompanying financial tables.
Seagate has issued a Supplemental Commentary document. The Supplemental
Commentary will not be read during today's call, but rather it is
available in the investors section of seagate.com.
Quarterly Cash Dividend
The Board of Directors approved an increase in our quarterly cash
dividend to $0.38 per share which was paid on December 28, 2012, rather
than in the March 2013 quarter. The payment of any future quarterly
dividends will be at the discretion of the Board and will be dependent
upon Seagate's financial position, results of operations, available
cash, cash flow, capital requirements and other factors deemed relevant
by the Board.
Seagate management will hold a public webcast today at 2:00 p.m. Pacific
Time that can be accessed on its Investor Relations website at www.seagate.com/investors.
During today's webcast, the Company will provide an outlook for its
third fiscal quarter of 2013 including key underlying assumptions.
A replay will be available beginning today at approximately 6:00 p.m.
Pacific Time at www.seagate.com/investors.
Seagate is a world leader in hard disk drives and storage solutions.
Learn more at www.seagate.com.
Cautionary Note Regarding Forward-Looking
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, each as amended, including, in
particular, statements about our plans, strategies and prospects and
estimates of industry growth for the fiscal quarter ending March 29,
2013 and beyond. These statements identify prospective information and
include words such as "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "projects" and similar expressions. These
forward-looking statements are based on information available to the
Company as of the date of this press release and are based on
management's current views and assumptions. These forward-looking
statements are conditioned upon and also involve a number of known and
unknown risks, uncertainties, and other factors that could cause actual
results, performance or events to differ materially from those
anticipated by these forward-looking statements. Such risks,
uncertainties, and other factors may be beyond the Company's control and
may pose a risk to the Company's operating and financial condition. Such
risks and uncertainties include, but are not limited to: the
uncertainty in global economic conditions, as consumers and businesses
may defer purchases in response to tighter credit and financial news;
the impact of the variable demand and adverse pricing environment for
disk drives, particularly in view of current business and economic
conditions; dependence on the Company's ability to successfully qualify,
manufacture and sell its disk drive products in increasing volumes on a
cost-effective basis and with acceptable quality, particularly the new
disk drive products with lower cost structures; the impact of
competitive product announcements; possible excess industry supply with
respect to particular disk drive products; and the Company's ability to
achieve projected cost savings in connection with restructuring plans.
Information concerning additional factors that could cause results to
differ materially from those projected in the forward-looking statements
are contained in the Company's Annual Report on Form 10-K as filed with
the SEC on August 8, 2012 and Quarterly Report on Form 10-Q as filed
with the SEC on October 31, 2012, which statements are incorporated into
this press release by reference. These forward-looking statements should
not be relied upon as representing the Company's views as of any
subsequent date and the Company undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the
date they were made.
SEAGATE TECHNOLOGY PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
June 29, 2012
The information as of June 29, 2012 was derived from the Company's
audited Consolidated Balance Sheet as of June 29, 2012.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Use of non-GAAP financial information
To supplement the condensed consolidated financial statements presented
in accordance with generally accepted accounting principles (GAAP), the
Company provides non-GAAP measures of net income, diluted net income per
share and gross margin as a percentage of revenue, which are adjusted
from results based on GAAP to exclude certain expenses, gains and
losses. These non-GAAP financial measures are provided to enhance the
user's overall understanding of the Company's current financial
performance and our prospects for the future. Specifically, the Company
believes non-GAAP results provide useful information to both management
and investors as these non-GAAP results exclude certain expenses, gains
and losses that we believe are not indicative of our core operating
results and because it is consistent with the financial models and
estimates published by financial analysts who follow the Company.
These non-GAAP results are some of the primary measurements management
uses to assess the Company's performance, allocate resources and plan
for future periods. Reported non-GAAP results should only be considered
as supplemental to results prepared in accordance with GAAP, and not
considered as a substitute for, or superior to, GAAP results. These
non-GAAP measures may differ from the non-GAAP measures reported by
other companies in our industry.
ADJUSTMENTS TO GAAP NET INCOME AND DILUTED NET INCOME PER SHARE
(In millions, except per share amounts)
For the ThreeMonthsEndedDecember
For the SixMonthsEndedDecember
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