CUPERTINO, CA – July 25, 2017 – Seagate Technology plc (NASDAQ: STX) (the “Company” or “Seagate”) today reported financial results for the quarter and fiscal year ended June 30, 2017. For the fourth quarter, the Company reported revenue of $2.4 billion, gross margin of 27.7%, net income of $114 million and diluted earnings per share of $0.38. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported gross margin of 28.9%, net income of $192 million and diluted earnings per share of $0.65.
During the fourth quarter, the Company generated $243 million in cash flow from operations and returned approximately $400 million to shareholders in the form of dividends and share repurchases.
For the fiscal year ended June 30, 2017, the Company reported revenue of $10.8 billion, gross margin of 29.5%, net income of $772 million and diluted earnings per share of $2.58. On a non-GAAP basis, Seagate reported gross margin of 30.5%, net income of $1.2 billion and diluted earnings per share of $4.12.
In fiscal year 2017, the Company generated approximately $1.9 billion in cash flow from operations and returned 53% of that to shareholders in cash dividends of $561 million and share repurchases of 12.1 million ordinary shares for $460 million. Seagate’s balance sheet remains healthy and during the fiscal year the Company successfully raised $1.25 billion in investment-grade debt and repurchased and redeemed approximately $316 million of outstanding debt. Cash and cash equivalents totaled approximately $2.5 billion at the end of the fiscal year. There were 292 million ordinary shares issued and outstanding as of the end of the fiscal year.
“The results of our performance this fiscal year reflect improved year-over-year profitability of our storage product portfolio and business operations,” said Steve Luczo, Seagate’s chairman and chief executive officer. “Although the near-term dynamics of technology shifts present demand variations for the storage industry from time to time, we continue to see growing storage demand in the long-run driven by the proliferation of data growth from new technologies, emerging industries, and growing businesses. We believe we have the vision, products, technology and experience to ensure our long-term success and shareholder value.”
For a detailed reconciliation of GAAP to non-GAAP results, see accompanying financial tables.
Seagate has issued a Supplemental Financial Information document, which is available on Seagate’s Investors Relations website at www.seagate.com/investors.
Quarterly Cash Dividend
The Board of Directors of the Company (the “Board”) has approved a quarterly cash dividend of $0.63 per share, which will be payable on October 4, 2017 to shareholders of record as of the close of business on September 20, 2017. 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.
Seagate management will hold a public webcast today at 6:00 a.m. Pacific Time that can be accessed on its Investor Relations website at www.seagate.com/investors. During today’s webcast, the Company will provide an outlook for its first fiscal quarter of 2018, including key underlying assumptions.
An archived audio webcast of this event will be available on Seagate’s Investors Relations website at www.seagate.com/investors shortly following the event conclusion.
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