Seagate Technology introduces Q2 2024 financial results, showcasing steady growth.

Seagate Technology Holdings plc, a leading data storage solutions provider, announced its financial results for the fiscal second quarter ending December 29, 2023. The company reported a strong performance with a 7% sequential revenue growth and non-GAAP EPS returning to profitability, surpassing the high end of their guidance range.

Dave Mosley, Seagate’s CEO, attributed the positive results to improving cloud nearline demand and early signs of market recovery. Mosley highlighted Seagate’s commitment to financial discipline and execution on their product roadmap, particularly the recent launch of their Mozaic platform. This new platform incorporates advanced technologies like HAMR (Heat-Assisted Magnetic Recording) to address key challenges faced by data center operators, including cost, power, and space constraints. The volume ramp-up for Seagate’s first Mozaic product is already underway, positioning the company to capitalize on the growing demand for mass capacity storage solutions.

During the fiscal second quarter, Seagate generated $169 million in cash flow from operations and $99 million in free cash flow. The company also returned $146 million of capital to shareholders through its quarterly dividend. As of the end of the quarter, Seagate had $787 million in cash and cash equivalents.

Looking ahead, Seagate provided its business outlook for the fiscal third quarter of 2024. The company expects revenue of $1.65 billion, with a range of plus or minus $150 million. Non-GAAP diluted EPS is projected to be $0.25, with a range of plus or minus $0.20. It’s worth noting that this guidance excludes estimated share-based compensation expenses of $0.15 per share.

Seagate’s Board of Directors also declared a quarterly cash dividend of $0.70 per share, payable on April 4, 2024, to shareholders of record as of March 21, 2024.

While Seagate remains optimistic about its future prospects, the company acknowledges that actual results may differ from their projections due to various factors. These factors are discussed in the Cautionary Note Regarding Forward-Looking Statements section of the release.

For more detailed financial information, including a reconciliation of GAAP to non-GAAP results, interested parties can refer to the accompanying financial tables and the Supplemental Financial Information document available on Seagate’s Investor Relations website.

In conclusion, Seagate’s strong financial performance in the fiscal second quarter reflects its ability to navigate market challenges and deliver innovative storage solutions. With the launch of the Mozaic platform and a positive business outlook for the coming quarter, Seagate is well-positioned to capitalize on emerging opportunities in the data storage industry.

Background Information

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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.