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Jan 19, 2011

Seagate Technology Reports Fiscal Second Quarter 2011 Financial Results

SCOTTS VALLEY, California -

Seagate Technology plc (NASDAQ: STX) today reported financial results for the quarter ended 31 December 2010. The Company shipped 48.9 million disc drives and on a GAAP basis reported revenue of US$2.7 billion, gross margin of 19.5%, net income of US$150 million and diluted earnings per share of US$0.31. On a non-GAAP basis, which excludes the net impact of purchased intangibles amortisation and restructuring, Seagate reported net income of US$159 million and diluted earnings per share of US$0.33 for the quarter ended 31 December 2010.

For the six months ended 31 December 2010, the Company reported, on a GAAP basis, revenue of US$5.4 billion, gross margin of 19.9%, net income of US$299 million and diluted earnings per share of US$0.61. On a non-GAAP basis, which excludes the impact of purchased intangibles amortisation and restructuring, Seagate reported net income of US$339 million and diluted earnings per share of US$0.70.

For reconciliation of non-GAAP to GAAP results, see accompanying financial tables.

Establishment of Revolving Credit Facility
On 18 January 2011 the Company and its subsidiary Seagate HDD Cayman (“the Borrower”) entered into a Credit Agreement that provides for a US$350 million senior secured revolving credit facility. The revolving credit facility is currently undrawn and provides the Company with flexibility to meet its business needs. Additional details regarding the Credit Agreement can be found in the Form 8-K filed today.

Investor Communications
Seagate will hold a conference call to review its second fiscal quarter results at 2:00 p.m. Pacific Time today. The conference call will consist of opening comments from Steve Luczo, CEO, followed by a question and answer session with the executive management team. During today’s conference call, the Company will provide an outlook for its third fiscal quarter of 2011, including key underlying assumptions.

Seagate has issued a Supplemental Commentary document. The Supplemental Commentary will not be read during today’s conference call, but rather it is available in the investor relations section of seagate.com.

Conference Call
The conference call can be accessed online at seagate.com or by phone as follows: USA: (866) 770-7051, International: +1 (617) 213-8064, Participant Passcode: 69764926

Replay
A replay will be available from 6:00 p.m. Pacific Time today. The replay can be accessed at seagate.com.

About Seagate
Seagate is the world leader in hard disc drives and storage solutions. Learn more at seagate.com.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to Seagate as of the date of this press release. Current expectations, forecasts and assumptions involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks, uncertainties and other factors may be beyond the Company’s control. In particular, global economic conditions may pose a risk to the Company’s operating and financial performance. Such risks and uncertainties also include the impact of variable demand; dependence on Seagate’s ability to successfully qualify, manufacture and sell its disc drive products in increasing volumes on a cost-effective basis and with acceptable quality, particularly the new disc drive products with lower cost structures; the impact of competitive product announcements; and the Company’s ability to achieve projected cost savings. Information concerning risks, uncertainties and other factors that could cause results to differ materially from those projected in the forward-looking statements is contained in the Company's Annual Report on Form 10-K, Form 10-K-A and the Quarterly Report on Form 10-Q, as filed with the US Securities and Exchange Commission on 20 August 2010, 6 October 2010 and 3 November 2010 respectively, whose 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 Seagate undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date on which they were made.

 

Please click here to view financial statements Q2 FY2011 Financial Statements.

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