Seagate Technology introduces Q1 2024 financial report, highlighting strong performance.


October 27, 2023

Seagate Technology introduces Q1 2024 financial report, highlighting strong performance.

Summary: Seagate Technology Holdings plc, a leading data storage solutions provider, has reported financial results for the fiscal first quarter ending September 29, 2023, in line with revised expectations, and has declared a quarterly cash dividend of $0.70 per share.

  • Seagate's focus on financial discipline and positive free cash flow generation
  • Execution of its HAMR product roadmap
  • Returned $145 million of capital to shareholders through its quarterly dividend


Seagate Technology Holdings plc, a leading data Storage solutions provider, has released its financial results for the fiscal first quarter ending September 29, 2023. Despite a longer-than-typical downcycle, the company’s performance was in line with revised expectations. Seagate’s focus on financial discipline, positive free cash flow generation, and the execution of its HAMR product roadmap has positioned it to maintain its industry leadership in areal density and improve the total cost of ownership for customers.

Dave Mosley, Seagate’s CEO, expressed optimism about the improving demand fundamentals in certain markets, including a modest uptick in U.S. cloud services. This positive trend puts Seagate in a favorable position to enhance profitability and seize long-term opportunities in the field of Mass Capacity storage.

In terms of financials, Seagate generated $127 million in cash flow from operations and $57 million in free cash flow during the first quarter. The company also returned $145 million of capital to shareholders through its quarterly dividend. Furthermore, Seagate issued $1.5 billion convertible notes due in 2028, with the proceeds primarily used to retire the outstanding balance on its remaining term loans. As of the end of the quarter, Seagate had $795 million in cash and cash equivalents.

The Board of Directors declared a quarterly cash dividend of $0.70 per share, payable on January 9, 2024, to shareholders of record as of December 21, 2023. The decision to pay future dividends will depend on various factors such as Seagate’s financial position, results of operations, available cash, cash flow, and capital requirements.

Looking ahead, Seagate provides guidance for its fiscal second quarter of 2024. The company expects revenue of $1.55 billion, plus or minus $150 million. The non-GAAP (loss) per share is projected to be $(0.10), plus or minus $0.20. It’s important to note that the guidance excludes known pre-tax charges related to estimated share-based compensation expenses of $0.14 per share.

It’s worth mentioning that the non-GAAP (loss) per share guidance hasn’t been reconciled with the most directly comparable GAAP measure, apart from estimated share-based compensation expenses. This is because there are certain material items that may impact these measures, which are beyond Seagate’s control or cannot be reasonably predicted at this time. These factors include accelerated depreciation, impairment charges, net (gain) loss from early debt redemption, purchase order cancellation fees, strategic investment losses (gains), income tax adjustments, and other charges or benefits that may arise. A reconciliation of the non-GAAP (loss) per share guidance to the corresponding GAAP measures is not currently available without unreasonable effort. However, a reconciliation of historical non-GAAP financial measures to their nearest GAAP equivalent can be found in the company’s release.

Overall, Seagate’s fiscal first quarter results demonstrate its commitment to financial discipline and innovation, positioning it well for future growth and profitability in the data storage industry.

Seagate Technology introduces Q1 2024 financial report, highlighting strong performance.

Seagate Technology introduces Q1 2024 financial report, highlighting strong performance.

Seagate Technology introduces Q1 2024 financial report, highlighting strong performance.

(Source)

Background Information


About Seagate: Seagate Technology, founded in 1978, is a leading data storage solutions provider that specializes in hard drives and storage solutions for consumers, businesses, and data centers. With a reputation for reliability and innovation, Seagate's products address diverse storage needs, from individual data storage to large-scale enterprise environments. The company has played a crucial role in shaping the data storage landscape and continues to be at the forefront of technological advancements.

Seagate Website: https://www.seagate.com/
Seagate LinkedIn: https://www.linkedin.com/company/seagate-technology/

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