Seagate Reports Third Quarter 2016 Financial Results
CUPERTINO, Calif., May 2 -- Seagate Technology plc (NASDAQ: STX) (the “Company” or “Seagate”) has reported financial results for the third quarter of fiscal year 2016 ended April 1, 2016. For the third quarter, the Company reported revenue of approximately $2.6 billion, gross margin of 20.2%, net loss of $21 million and diluted loss per share of $0.07. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported gross margin of 22.7%, net income of $66 million and diluted earnings per share of $0.22. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial tables.
During the third quarter, the Company generated approximately $205 million in operating cash flow and paid cash dividends of $188 million. There were 298 million ordinary shares issued and outstanding as of the end of the quarter. Cash, cash equivalents and short-term investments totaled approximately $1.2 billion at the end of the quarter.
“Our quarterly results fell short of our expectations as a result of several near-term demand factors. Despite these challenges, we believe we have the product portfolio, technology roadmap and operational leverage to ensure we are well-positioned for long-term success,” said Steve Luczo, Seagate’s chairman and chief executive officer. “Accordingly, we are aggressively working to position Seagate to respond to new demand levels and are committed to ongoing financial discipline.”
Luczo continued, “Although the short-term dynamics of our industry are challenging, we continue to see significant and growing Exabyte demand, particularly as enterprise applications shift to cloud environments. As we look forward, our strategic focus is unchanged -- we are broadening our storage portfolio to meet the needs of our growing global customer base, building upon our strong competitive position and optimizing our business for continued financial performance. These focus areas will enable us to build lasting value for shareholders.”
Seagate has issued a Supplemental Financial Information document, which is available on Seagate’s Investors website at www.seagate.com/investors.
Quarterly Cash Dividend
The Company’s Board of Directors has approved a quarterly cash dividend of $0.63 per share, which will be payable on May 24, 2016 to shareholders of record as of the close of business on May 10, 2016. 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 of Directors.
About Seagate
To learn more about the company’s products and services, visit www.seagate.com and follow us on Twitter, Facebook, LinkedIn, Spiceworks, YouTube and subscribe to our blog. The contents of our website and social media channels are not a part of this release.
Source: Seagate
