Seagate Technology Reports Fiscal Second Quarter 2022 Financial Results

2:18:59 PM | 1/27/2022

Seagate Technology Holdings plc (NASDAQ: STX) (the “Company” or “Seagate”) reported financial results for its fiscal second quarter ended December 31, 2021.

Revenue of $3.12 billion
GAAP operating margin of 18.6%; non-GAAP operating margin of 19.9%
GAAP diluted earnings per share (EPS) of $2.23; non-GAAP diluted EPS of $2.41
Cash flow from operations of $521 million and free cash flow of $426 million
Returned $622 million to shareholders through dividends and the repurchase of 5.1 million ordinary shares
Calendar year cash flow from operations of $1.9 billion and calendar year free cash flow of $1.4 billion

“Calendar 2021 was an outstanding year for Seagate. Compared with the prior calendar year, we grew revenue by 18% and more importantly, delivered free cash flow growth of 39%, which we are deploying effectively into our long-standing capital returns program,” said Dave Mosley, Seagate’s chief executive officer.

“The calendar year was capped by strong December quarter performance including our highest revenue level in over 6-years, supported by cloud data center demand for our high capacity nearline products. We continue to execute amid a very dynamic business environment. Barring any significant additional macro disruptions, we expect to build on our 2021 performance this calendar year and beyond as favorable demand trends support revenue expansion consistent with our long-term financial model range of 3-to-6% growth.”

Quarterly Financial Results

The Company generated $521 million in cash flow from operations and $426 million in free cash flow during the fiscal second quarter 2022. Seagate maintained a healthy balance sheet, and during the fiscal second quarter the Company paid cash dividends of $151 million and repurchased 5.1 million ordinary shares for $471 million. Cash and cash equivalents totaled $1.5 billion. There were 219 million ordinary shares issued and outstanding as of the end of the quarter.

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 Investor Relations website at investors.seagate.com.

Quarterly Cash Dividend

The Board of Directors of the Company (the “Board”) declared a quarterly cash dividend of $0.70 per share, which will be payable on April 6, 2022 to shareholders of record as of the close of business on March 22, 2022. 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.

Business Outlook

The business outlook for the fiscal third quarter 2022 is based on our current assumptions and expectations; actual results may differ materially, as a result of, among other things, the important factors discussed in the Cautionary Note Regarding Forward- Looking Statements section of this release.

The Company is providing the following guidance for its fiscal third quarter 2022:

Revenue of $2.9 billion, plus or minus $150 million
Non-GAAP diluted EPS of $2.00, plus or minus $0.20

Guidance regarding non-GAAP diluted EPS excludes known charges related to amortization of acquired intangible assets of $0.02 per share and estimated share-based compensation expenses of $0.17 per share.

H.N (Vietnam Business Forum)