Seagate: Fiscal 1Q17 Financial Results

Seagate Technology plc reported financial results for the first quarter of fiscal year 2017 ended September 30, 2016.

For the first quarter, the company reported revenue of $2.8 billion, gross margin of 28.6%, net income of $167 million and diluted earnings per share of $0.55.

On a non-GAAP basis, which excludes the net impact of certain items, the firm reported gross margin of 29.5%, net income of $299 million and diluted earnings per share of $0.99.

During the first quarter, the company generated $592 million in operating cash flow and repurchased 3 million ordinary shares for $101 million. Cash, cash equivalents, and short-term investments totaled approximately $1.5 billion at the end of the quarter.

There were 299 million ordinary shares issued and outstanding as of the end of the quarter.

“In response to strong cloud storage customer demand, Seagate delivered record levels of exabyte shipments, and generated strong revenues, margin and cash flow in the September quarter. In addition, as a result of our operating expense management, the company’s non-GAAP earnings per share increased by 85% year over year,” said Steve Luczo, Seagate’s chairman and CEO. “As the demand for HDD storage continues to benefit from the shift to data driven cloud based architectures, Seagate is in a strong position to grow its businesses, improve margins and continue with its dividend and buyback capital allocation objectives.”

The board of directors of the company  has approved a quarterly cash dividend of $0.63 per share, which will be payable on January 4, 2017 to shareholders of record as of the close of business on December 21, 2016.