Seagate Technology Reports Fiscal Third Quarter 2012 Financial Results

2012-04-17 00:00:00.0

Over US$1.2 Billion Returned to Shareholders in Dividends and Buybacks

Seagate Technology plc (NASDAQ: STX) today reported financial results for the quarter ended 30 March, 2012. The Company reported revenue of US$4.4 billion, gross margin of 37%, net income of US$1.1 billion and diluted earnings per share of US$2.48. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported net income of US$1.2 billion and diluted earnings per share of US$2.64.

The Company generated approximately US$938 million in cash from operations, paid cash dividends of US$112 million and used approximately US$1.1 billion to repurchase 43.1 million shares of common stock and for the early retirement of debt.

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

"Seagate delivered strong performance this quarter by concentrating our efforts towards supporting our customers as the recovery of the hard drive industry continues to progress," said Steve Luczo, Chairman, President and CEO. "Importantly, during this challenging period, Seagate has successfully transitioned its portfolio to industry-leading products across all markets, thereby positioning the Company for continued leadership through operational excellence."

Dividend
The Board of Directors has approved a quarterly cash dividend of US$0.25 per share, which will be payable on 17 May 2012 to shareholders of record as of the close of business on 2 May 2012. 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.

Investor Communications
Seagate management will hold a public webcast to review its third fiscal quarter today at 3.00pm US Pacific Time on its Investor Relations website at www.seagate.com/investors. During today's conference call, the Company will provide an outlook for its fourth fiscal quarter of 2012 and its view of the remainder of the calendar year, including key underlying assumptions. Seagate is planning an investor and analyst meeting on 21 September 2012 to discuss the Company's longer-term strategic plan.

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

Conference Call
The conference call can be accessed online at http://www.seagate.com/investors.

Replay
A replay will be available at approximately 6.00pm US Pacific Time today.

About Seagate Technology
Seagate is the world leader in hard disc drives and storage solutions. Learn more at www.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, including, in particular, statements about our plans, strategies and prospects and estimates of industry growth for the fiscal quarter ending 30 June 2012 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. 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, the decline in global economic conditions continues to pose a risk to the Company’s operating and financial performance as consumers and businesses have deferred, and may defer, purchases in response to tighter credit and financial conditions. Such risks and uncertainties also include, but are not limited to, 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; and possible excess industry supply with respect to particular disk drive products; the Company's ability to achieve projected cost savings in connection with restructuring plans; the risk that we will incur significant incremental costs in connection with our recently executed transaction with Samsung Electronics Co, Ltd ("Samsung") or that we will not achieve the benefits expected from such transaction; and significant disruption to the industry supply chain due to the severe flooding throughout parts of Thailand. 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 and Form 10-K/A, as filed with the US Securities and Exchange Commission on 17 August 2011 and 24 August 2011 respectively, and in the Company’s Quarterly Report on Form 10-Q, as filed with the US Securities and Exchange Commission on 25 January 2012, 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 the Company 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 the financial statements Q3 FY2012 Financial Statements.