Seagate Technology reported strong financial results for its fiscal first quarter 2025. Revenue increased to $2.17 billion, with GAAP diluted EPS of $1.41 and non-GAAP diluted EPS of $1.58. The company generated $95 million in cash flow from operations and $27 million in free cash flow. Notably, gross margin expanded to the highest level in over a decade.
CEO Dave Mosley highlighted the successful ramp-up of 28-terabyte nearline drives and increased cloud customer qualifications for HAMR-based Mozaic products. The company’s confidence in future opportunities led to a 3% increase in the quarterly cash dividend to $0.72 per share. Seagate’s strong product momentum positions it well to address customer demand and deliver profitable growth.
Seagate Technology ha riportato risultati finanziari solidi per il primo trimestre fiscale del 2025. I ricavi sono aumentati a 2,17 miliardi di dollari, con una EPS diluita GAAP di 1,41 dollari e una EPS diluita non GAAP di 1,58 dollari. L’azienda ha generato 95 milioni di dollari di flusso di cassa dalle operazioni e 27 milioni di dollari di flusso di cassa libero. È importante notare che il margine lordo è aumentato al livello più alto in oltre un decennio.
Il CEO Dave Mosley ha sottolineato il successo nell’aumento della produzione di dischi nearline da 28 terabyte e l’incremento delle qualifiche dei clienti nel cloud per i prodotti Mozaic basati su HAMR. La fiducia dell’azienda nelle opportunità future ha portato a un aumento del 3% del dividendo trimestrale in contante, a 0,72 dollari per azione. Il forte slancio dei prodotti di Seagate la posiziona bene per soddisfare la domanda dei clienti e generare una crescita redditizia.
Seagate Technology reportó resultados financieros sólidos para su primer trimestre fiscal de 2025. Los ingresos aumentaron a 2.17 mil millones de dólares, con EPS diluido GAAP de 1.41 dólares y EPS diluido no GAAP de 1.58 dólares. La compañía generó 95 millones de dólares en flujo de caja de operaciones y 27 millones de dólares en flujo de caja libre. Notablemente, el margen bruto se expandió al nivel más alto en más de una década.
El CEO Dave Mosley destacó el exitoso aumento en la producción de unidades nearline de 28 terabytes y el aumento en las calificaciones de clientes en la nube para productos Mozaic basados en HAMR. La confianza de la compañía en las oportunidades futuras llevó a un incremento del 3% en el dividendo en efectivo trimestral a 0.72 dólares por acción. El fuerte ímpetu de los productos de Seagate la posiciona bien para abordar la demanda de los clientes y entregar un crecimiento rentable.
세게이트 테크놀로지는 2025 회계연도 첫 분기 강력한 재무 결과를 발표했습니다. 수익은 21억 7천만 달러로 증가했습니다, GAAP 희석 주당 순이익(EPS)은 1.41 달러, 비GAAP 희석 EPS는 1.58 달러입니다. 회사는 운영에서 9천5백만 달러의 현금 흐름과 2천7백만 달러의 자유 현금 흐름을 생성했습니다. 특히, 총 마진이 10년 이상 만에 최고 수준으로 확대되었습니다.
CEO 데이브 모슬리는 28TB 근거리 드라이브의 성공적인 생산 증가와 HAMR 기반 Mozaic 제품에 대한 클라우드 고객 자격의 증가를 강조했습니다. 회사의 미래 기회에 대한 자신감은 분기 배당금을 3% 인상하여 주당 0.72 달러로 만들었습니다. 세게이트의 강력한 제품 모멘텀은 고객 수요를 충족하고 수익성 있는 성장을 제공하기 위한 좋은 위치를 마련해줍니다.
Seagate Technology a annoncé de solides résultats financiers pour son premier trimestre fiscal 2025. Le chiffre d’affaires a augmenté pour atteindre 2,17 milliards de dollars, avec un BPA dilué GAAP de 1,41 dollar et un BPA dilué non-GAAP de 1,58 dollar. L’entreprise a généré 95 millions de dollars de flux de trésorerie d’exploitation et 27 millions de dollars de flux de trésorerie libre. Notamment, la marge brute s’est élargie au niveau le plus élevé depuis plus de dix ans.
Le PDG Dave Mosley a souligné le succès de l’augmentation de la production de disques nearline de 28 To et l’augmentation des qualifications des clients cloud pour les produits Mozaic basés sur HAMR. La confiance de l’entreprise dans les opportunités futures a entraîné une augmentation de 3 % du dividende en espèces trimestriel à 0,72 dollar par action. Le fort élan des produits de Seagate place l’entreprise dans une bonne position pour répondre à la demande des clients et réaliser une croissance rentable.
Seagate Technology hat für das erste Quartal des Geschäftsjahres 2025 starke Finanzergebnisse vermeldet. Der Umsatz stieg auf 2,17 Milliarden Dollar, mit einem verwässerten GAAP-Ergebnis von 1,41 Dollar und einem verwässerten Non-GAAP-Ergebnis von 1,58 Dollar. Das Unternehmen generierte 95 Millionen Dollar an operativen Cashflows und 27 Millionen Dollar an freiem Cashflow. Bemerkenswert ist, dass die Bruttomarge auf den höchsten Stand seit über einem Jahrzehnt gestiegen ist.
CEO Dave Mosley hob die erfolgreiche Steigerung der Produktion von 28-Terabyte-Nearline-Laufwerken und die erhöhten Cloud-Kundenqualifikationen für HAMR-basierte Mozaic-Produkte hervor. Das Vertrauen des Unternehmens in zukünftige Möglichkeiten führte zu einer Erhöhung der vierteljährlichen Bardividende um 3 % auf 0,72 Dollar pro Aktie. Der starke Produktmomentum von Seagate positioniert das Unternehmen gut, um die Kundennachfrage zu bedienen und profitables Wachstum zu erzielen.
Positive
- Revenue increased to $2.17 billion from $1.45 billion in the same quarter last year
- GAAP diluted EPS improved to $1.41 from a loss of $0.88 in the previous year
- Non-GAAP diluted EPS rose to $1.58 from a loss of $0.22 year-over-year
- Gross margin expanded to 32.9% (GAAP) and 33.3% (non-GAAP), the highest in over a decade
- Operating margin improved to 18.6% (GAAP) and 20.4% (non-GAAP)
- Generated $95 million in cash flow from operations and $27 million in free cash flow
- Increased quarterly cash dividend by 3% to $0.72 per share
Insights
Seagate’s Q1 2025 results show a remarkable turnaround, with revenue jumping to
The company’s focus on high-capacity drives, particularly the 28TB nearline drives and HAMR-based Mozaic products, appears to be paying off. This product strategy positions Seagate well in the growing cloud storage market. The
However, investors should note the relatively modest free cash flow of
Seagate’s strong performance this quarter underscores the growing demand for high-capacity storage solutions, driven by cloud computing and data center expansion. The successful ramp-up of 28TB nearline drives and the broadening qualification of HAMR-based Mozaic products among cloud customers are critical developments. These advancements position Seagate at the forefront of storage technology, potentially capturing market share in the lucrative enterprise and cloud segments.
The company’s ability to improve gross margins significantly while introducing new technologies is impressive. It suggests effective cost management and pricing power, likely due to the advanced nature of their offerings. The emphasis on HAMR technology is particularly noteworthy, as it represents a leap in areal density capabilities, which is important for meeting the ever-increasing data storage demands of AI and big data applications.
Looking ahead, Seagate’s focus on high-capacity drives aligns well with industry trends, but investors should monitor competitive pressures and the pace of cloud infrastructure investments, which could impact future demand.
Fiscal Q1 2025 Highlights
-
Revenue increased to
$2.17 billion -
GAAP diluted earnings per share (EPS) of
$1.41 $1.58 -
Cash flow from operations of
$95 million $27 million -
Increased quarterly cash dividend by approximately
3% to$0.72
Seagate Technology Holdings plc (NASDAQ: STX) (the “Company” or “Seagate”), a leading innovator of mass-capacity data storage, today reported financial results for its fiscal first quarter ended September 27, 2024.
“Seagate is off to an outstanding start to the fiscal year, highlighted by gross margin expanding to the highest level in more than a decade,” said Dave Mosley, Seagate’s chief executive officer.
“We executed on our plans to aggressively ramp our 28-terabyte nearline drives and broaden the number of cloud customers entering qualification on HAMR-based Mozaic products. We are excited by the strong product momentum which positions us well to address customer demand while delivering profitable growth. Our confidence in Seagate’s future opportunities is reflected in the decision to raise the quarterly dividend as announced today,” Mosley concluded.
Quarterly Financial Results
|
|
|
GAAP |
|
Non-GAAP |
||||||||||||
|
|
FQ1 2025 |
|
FQ1 2024 |
|
FQ1 2025 |
|
FQ1 2024 |
|||||||||
|
Revenue ($M) |
$ |
2,168 |
|
|
$ |
1,454 |
|
|
$ |
2,168 |
|
|
$ |
1,454 |
|
|
|
Gross Margin |
|
32.9 |
% |
|
|
10.2 |
% |
|
|
33.3 |
% |
|
|
19.8 |
% |
|
|
Operating Margin |
|
18.6 |
% |
|
|
(8.9 |
%) |
|
|
20.4 |
% |
|
|
2.8 |
% |
|
|
Net Income (Loss) ($M) |
$ |
305 |
|
|
$ |
(184 |
) |
|
$ |
337 |
|
|
$ |
(46 |
) |
|
|
Diluted Earnings (Loss) Per Share |
$ |
1.41 |
|
|
$ |
(0.88 |
) |
|
$ |
1.58 |
|
|
$ |
(0.22 |
) |
|
For a detailed reconciliation of GAAP to non-GAAP results, see accompanying financial tables.
During the fiscal first quarter the Company generated
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
Business Outlook
The business outlook for the fiscal second quarter 2025 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 second quarter 2025:
-
Revenue of
$2.30 billion $150 million -
Non-GAAP diluted EPS of
$1.85 $0.20
Guidance regarding non-GAAP diluted EPS excludes known pre-tax charges related to estimated share-based compensation expenses of
We have not reconciled our non-GAAP diluted EPS guidance for fiscal second quarter 2025 to the most directly comparable GAAP measure, other than estimated share-based compensation expenses, because material items that may impact these measures are out of our control and/or cannot be reasonably predicted, including, but not limited to, net (gain) loss recognized from early redemption of debt, purchase order cancellation fees, strategic investment losses (gains) or impairment charges, income tax adjustments on these measures, and other charges or benefits that may arise. The amounts of these measures are not currently available but may be material to future results. A reconciliation of the non-GAAP diluted EPS guidance for fiscal second quarter 2025 to the corresponding GAAP measures is not available without unreasonable effort. A reconciliation of our historical non-GAAP financial measures to their nearest GAAP equivalent is contained in this release.
Investor Communications
Seagate management will hold a public webcast today at 2:00 PM PT / 5:00 PM ET that can be accessed on its Investor Relations website at investors.seagate.com.
An archived audio webcast of this event will be available on Seagate’s Investor Relations website at investors.seagate.com shortly following the event conclusion.
About Seagate
Seagate Technology is a leading innovator of mass-capacity data storage. We create breakthrough technology so you can confidently store your data and easily unlock its value. Founded over 45 years ago, Seagate has shipped over four billion terabytes of data capacity and offers a full portfolio of storage devices, systems, and services from edge to cloud. To learn more about how Seagate leads storage innovation, visit www.seagate.com and our blog, or follow us on X, Facebook, LinkedIn, and YouTube.
© 2024 Seagate Technology LLC. All rights reserved. Seagate, Seagate Technology, and the Spiral logo are registered trademarks of Seagate Technology LLC in
Cautionary Note Regarding Forward-Looking Statements
This press release and our other communications regarding our quarterly financial results contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical fact. Forward-looking statements include, among other things, statements about the Company’s plans, programs, strategies, prospects, and opportunities; financial outlook for future periods, including the fiscal second quarter 2025; expectations regarding our ability to service debt and continue to generate free cash flow; expectations regarding our ability to make timely quarterly payments under the settlement agreement with the
The inclusion of Seagate’s website addresses in this press release are provided for convenience only. The information contained in, or that can be accessed through, Seagate’s websites and social media channels are not part of this press release.
|
SEAGATE TECHNOLOGY HOLDINGS PLC |
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
(In millions) |
|||||||
|
|
September 27, 2024 |
|
June 28, 2024 |
||||
|
|
(unaudited) |
|
|
||||
|
ASSETS |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
1,239 |
|
|
$ |
1,358 |
|
|
Accounts receivable, net |
|
628 |
|
|
|
429 |
|
|
Inventories, net |
|
1,383 |
|
|
|
1,239 |
|
|
Other current assets |
|
358 |
|
|
|
306 |
|
|
Total current assets |
|
3,608 |
|
|
|
3,332 |
|
|
Property, equipment and leasehold improvements, net |
|
1,599 |
|
|
|
1,614 |
|
|
Goodwill |
|
1,219 |
|
|
|
1,219 |
|
|
Deferred income taxes |
|
1,038 |
|
|
|
1,037 |
|
|
Other assets, net |
|
508 |
|
|
|
537 |
|
|
Total Assets |
$ |
7,972 |
|
|
$ |
7,739 |
|
|
LIABILITIES AND SHAREHOLDERS’ DEFICIT |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
1,778 |
|
|
$ |
1,786 |
|
|
Accrued employee compensation |
|
148 |
|
|
|
106 |
|
|
Accrued warranty |
|
71 |
|
|
|
74 |
|
|
Current portion of long-term debt |
|
479 |
|
|
|
479 |
|
|
Accrued expenses |
|
685 |
|
|
|
654 |
|
|
Total current liabilities |
|
3,161 |
|
|
|
3,099 |
|
|
Long-term accrued warranty |
|
70 |
|
|
|
75 |
|
|
Other non-current liabilities |
|
844 |
|
|
|
861 |
|
|
Long-term debt, less current portion |
|
5,197 |
|
|
|
5,195 |
|
|
Total Liabilities |
|
9,272 |
|
|
|
9,230 |
|
|
Total Shareholders’ Deficit |
|
(1,300 |
) |
|
|
(1,491 |
) |
|
Total Liabilities and Shareholders’ Deficit |
$ |
7,972 |
|
|
$ |
7,739 |
|
|
SEAGATE TECHNOLOGY HOLDINGS PLC |
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||
|
(In millions, except per share data) |
|||||||
|
(Unaudited) |
|||||||
|
|
For the Three Months Ended |
||||||
|
|
September 27, 2024 |
|
September 29, 2023 |
||||
|
Revenue |
$ |
2,168 |
|
|
$ |
1,454 |
|
|
|
|
|
|
||||
|
Cost of revenue |
|
1,454 |
|
|
|
1,305 |
|
|
Product development |
|
181 |
|
|
|
171 |
|
|
Marketing and administrative |
|
129 |
|
|
|
105 |
|
|
Restructuring and other, net |
|
1 |
|
|
|
2 |
|
|
Total operating expenses |
|
1,765 |
|
|
|
1,583 |
|
|
|
|
|
|
||||
|
Income (loss) from operations |
|
403 |
|
|
|
(129 |
) |
|
|
|
|
|
||||
|
Interest income |
|
7 |
|
|
|
2 |
|
|
Interest expense |
|
(85 |
) |
|
|
(84 |
) |
|
Net gain from termination of interest rate swap |
|
— |
|
|
|
104 |
|
|
Net loss from early redemption of debt |
|
— |
|
|
|
(29 |
) |
|
Other, net |
|
(9 |
) |
|
|
(11 |
) |
|
Other expense, net |
|
(87 |
) |
|
|
(18 |
) |
|
|
|
|
|
||||
|
Income (loss) before income taxes |
|
316 |
|
|
|
(147 |
) |
|
Provision for income taxes |
|
11 |
|
|
|
37 |
|
|
Net income (loss) |
$ |
305 |
|
|
$ |
(184 |
) |
|
|
|
|
|
||||
|
Net income (loss) per share: |
|
|
|
||||
|
Basic |
$ |
1.45 |
|
|
$ |
(0.88 |
) |
|
Diluted |
$ |
1.41 |
|
|
$ |
(0.88 |
) |
|
Number of shares used in per share calculations: |
|
|
|
||||
|
Basic |
|
211 |
|
|
|
208 |
|
|
Diluted |
|
216 |
|
|
|
208 |
|
|
|
|
|
|
||||
|
Cash dividends declared per ordinary share |
$ |
0.70 |
|
|
$ |
0.70 |
|
|
SEAGATE TECHNOLOGY HOLDINGS PLC |
|||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(In millions) |
|||||||
|
(Unaudited) |
|||||||
|
|
For the Three Months Ended |
||||||
|
|
September 27, 2024 |
|
September 29, 2023 |
||||
|
OPERATING ACTIVITIES |
|
|
|
||||
|
Net income (loss) |
$ |
305 |
|
|
$ |
(184 |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
64 |
|
|
|
76 |
|
|
Share-based compensation |
|
38 |
|
|
|
25 |
|
|
Net loss from redemption and repurchase of debt |
|
— |
|
|
|
7 |
|
|
Deferred income taxes |
|
(3 |
) |
|
|
28 |
|
|
Other non-cash operating activities, net |
|
23 |
|
|
|
(50 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable, net |
|
(199 |
) |
|
|
100 |
|
|
Inventories, net |
|
(144 |
) |
|
|
88 |
|
|
Accounts payable |
|
10 |
|
|
|
(70 |
) |
|
Accrued employee compensation |
|
37 |
|
|
|
(12 |
) |
|
BIS settlement penalty |
|
(15 |
) |
|
|
— |
|
|
Accrued expenses, income taxes and warranty |
|
16 |
|
|
|
54 |
|
|
Other assets and liabilities |
|
(37 |
) |
|
|
65 |
|
|
Net cash provided by operating activities |
|
95 |
|
|
|
127 |
|
|
INVESTING ACTIVITIES |
|
|
|
||||
|
Acquisition of property, equipment and leasehold improvements |
|
(68 |
) |
|
|
(70 |
) |
|
Net cash used in investing activities |
|
(68 |
) |
|
|
(70 |
) |
|
FINANCING ACTIVITIES |
|
|
|
||||
|
Redemption and repurchase of debt |
|
— |
|
|
|
(1,288 |
) |
|
Proceeds from issuance of long-term debt |
|
— |
|
|
|
1,500 |
|
|
Dividends to shareholders |
|
(147 |
) |
|
|
(145 |
) |
|
Taxes paid related to net share settlement of equity awards |
|
(28 |
) |
|
|
(25 |
) |
|
Proceeds from issuance of ordinary shares under employee stock plans |
|
29 |
|
|
|
35 |
|
|
Other financing activities, net |
|
— |
|
|
|
(126 |
) |
|
Net cash used in financing activities |
|
(146 |
) |
|
|
(49 |
) |
|
Effect of foreign currency exchange rate changes on cash, cash equivalents and restricted cash |
|
— |
|
|
|
1 |
|
|
(Decrease) increase in cash, cash equivalents and restricted cash |
|
(119 |
) |
|
|
9 |
|
|
Cash, cash equivalents and restricted cash at the beginning of the period |
|
1,360 |
|
|
|
788 |
|
|
Cash, cash equivalents and restricted cash at the end of the period |
$ |
1,241 |
|
|
$ |
797 |
|
Use of non-GAAP financial information
The Company uses non-GAAP measures of gross profit, gross margin, operating expenses, income from operations, operating margin, net income, diluted EPS, free cash flow, EBITDA, adjusted EBITDA and last twelve months adjusted EBITDA, which are adjusted from results based on GAAP to exclude certain benefits, expenses, gains and losses. These non-GAAP financial measures are used by management to evaluate the business and provided to enhance the user’s overall understanding of the Company’s current financial performance and its prospects for the future. Specifically, the Company believes non-GAAP results provide useful information to investors as these non-GAAP results exclude certain benefits, expenses, gains and losses that the Company believes are not part of the Company’s ongoing operations and not indicative of its core operating results.
These non-GAAP financial measures are some of the measurements management uses to assess the Company’s performance, allocate resources and plan for future periods. Reported non-GAAP results should only be considered as supplemental to results prepared in accordance with GAAP, and not considered as a substitute or replacement for, or superior to, GAAP results. These non-GAAP measures may differ from the non-GAAP measures reported by other companies in its industry.
|
SEAGATE TECHNOLOGY HOLDINGS PLC RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES (In millions, except per share amounts, gross margin and operating margin) (Unaudited) |
|||||||
|
|
For the Three Months Ended |
||||||
|
|
September 27, 2024 |
|
September 29, 2023 |
||||
|
GAAP Gross Profit |
$ |
714 |
|
|
$ |
149 |
|
|
Accelerated depreciation, impairment and other charges related to cost saving efforts |
|
— |
|
|
|
13 |
|
|
Purchase order cancellation fees |
|
(1 |
) |
|
|
118 |
|
|
Share-based compensation |
|
10 |
|
|
|
7 |
|
|
Other charges |
|
— |
|
|
|
1 |
|
|
Non-GAAP Gross Profit |
$ |
723 |
|
|
$ |
288 |
|
|
|
|
|
|
||||
|
GAAP Gross Margin |
|
32.9 |
% |
|
|
10.2 |
% |
|
Non-GAAP Gross Margin |
|
33.3 |
% |
|
|
19.8 |
% |
|
|
|
|
|
||||
|
GAAP Operating Expenses |
$ |
311 |
|
|
$ |
278 |
|
|
Restructuring and other, net |
|
(1 |
) |
|
|
(2 |
) |
|
Share-based compensation |
|
(28 |
) |
|
|
(18 |
) |
|
Other charges |
|
(1 |
) |
|
|
(10 |
) |
|
Non-GAAP Operating Expenses |
$ |
281 |
|
|
$ |
248 |
|
|
|
|
|
|
||||
|
GAAP Income (Loss) From Operations |
$ |
403 |
|
|
$ |
(129 |
) |
|
Accelerated depreciation, impairment and other charges related to cost saving efforts |
|
— |
|
|
|
13 |
|
|
Purchase order cancellation fees |
|
(1 |
) |
|
|
118 |
|
|
Restructuring and other, net |
|
1 |
|
|
|
2 |
|
|
Share-based compensation |
|
38 |
|
|
|
25 |
|
|
Other charges |
|
1 |
|
|
|
11 |
|
|
Non-GAAP Income From Operations |
$ |
442 |
|
|
$ |
40 |
|
|
|
|
|
|
||||
|
GAAP Operating Margin |
|
18.6 |
% |
|
|
(8.9 |
)% |
|
Non-GAAP Operating Margin |
|
20.4 |
% |
|
|
2.8 |
% |
|
GAAP Net Income (Loss) |
$ |
305 |
|
|
$ |
(184 |
) |
|
Accelerated depreciation, impairment and other charges related to cost saving efforts |
|
— |
|
|
|
13 |
|
|
Net gain from termination of interest rate swap |
|
— |
|
|
|
(104 |
) |
|
Net loss from early redemption of debt |
|
— |
|
|
|
29 |
|
|
Purchase order cancellation fees |
|
(1 |
) |
|
|
118 |
|
|
Restructuring and other, net |
|
1 |
|
|
|
2 |
|
|
Share-based compensation |
|
38 |
|
|
|
25 |
|
|
Strategic investment losses or impairment charges |
|
1 |
|
|
|
— |
|
|
Other charges |
|
1 |
|
|
|
11 |
|
|
Income tax adjustments |
|
(8 |
) |
|
|
44 |
|
|
Non-GAAP Net Income (Loss) |
$ |
337 |
|
|
$ |
(46 |
) |
|
GAAP Diluted Net Income (Loss) Per Share |
$ |
1.41 |
|
|
$ |
(0.88 |
) |
|
Accelerated depreciation, impairment and other charges related to cost saving efforts |
|
— |
|
|
|
0.06 |
|
|
Net gain from termination of interest rate swap |
|
— |
|
|
$ |
(0.50 |
) |
|
Net loss from early redemption of debt |
|
— |
|
|
|
0.14 |
|
|
Purchase order cancellation fees |
|
— |
|
|
|
0.57 |
|
|
Restructuring and other, net |
|
— |
|
|
|
0.01 |
|
|
Share-based compensation |
|
0.18 |
|
|
|
0.12 |
|
|
Strategic investment losses or impairment charges |
|
— |
|
|
|
— |
|
|
Other charges |
|
— |
|
|
|
0.05 |
|
|
Income tax adjustments |
|
(0.04 |
) |
|
|
0.21 |
|
|
Non-GAAP diluted share count adjustments1 |
|
0.03 |
|
|
|
— |
|
|
Non-GAAP Diluted Net Income (Loss) Per Share1 |
$ |
1.58 |
|
|
$ |
(0.22 |
) |
|
|
|
|
|
||||
|
Shares Used In Diluted Net Income (Loss) Per Share Calculation |
|
|
|||||
|
GAAP |
|
216 |
|
|
|
208 |
|
|
Non-GAAP diluted share count adjustments1 |
|
(3 |
) |
|
|
— |
|
|
Non-GAAP |
|
213 |
|
|
|
208 |
|
|
|
|
|
|
||||
|
GAAP Net Cash Provided by Operating Activities |
$ |
95 |
|
|
$ |
127 |
|
|
Acquisition of property, equipment and leasehold improvements |
|
(68 |
) |
|
|
(70 |
) |
|
Free Cash Flow |
$ |
27 |
|
|
$ |
57 |
|
| _____________________________________ | |
|
1 |
For the three months ended September 27, 2024, using the if-converted method, approximately 3 million shares are issuable upon conversion of our 2028 exchangeable senior notes. These dilutive effects are expected to be offset in full by the capped call transactions and are excluded from non-GAAP shares used in diluted net income per share calculation. For the three months ended September 29, 2023, GAAP and non-GAAP diluted net loss per share were computed using weighted average basic shares of 208 million, as a result of the net loss reported during the period. |
| SEAGATE TECHNOLOGY HOLDINGS PLC | |||||||||||||||||||
|
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES |
|||||||||||||||||||
|
(In millions) |
|||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||
|
|
For the Three Months Ended |
|
|
||||||||||||||||
|
|
September 27, |
|
June 28, |
|
March 29, |
|
December 29, |
|
Last Twelve |
||||||||||
|
GAAP Net Income (Loss) |
$ |
305 |
|
|
$ |
513 |
|
|
$ |
25 |
|
|
$ |
(19 |
) |
|
$ |
824 |
|
|
Depreciation and amortization |
|
64 |
|
|
|
63 |
|
|
|
63 |
|
|
|
62 |
|
|
|
252 |
|
|
Interest expense |
|
85 |
|
|
|
82 |
|
|
|
82 |
|
|
|
84 |
|
|
|
333 |
|
|
Interest income |
|
(7 |
) |
|
|
(7 |
) |
|
|
(3 |
) |
|
|
(3 |
) |
|
|
(20 |
) |
|
Income tax expense |
|
11 |
|
|
|
25 |
|
|
|
33 |
|
|
|
15 |
|
|
|
84 |
|
|
Non-GAAP EBITDA |
|
458 |
|
|
|
676 |
|
|
|
200 |
|
|
|
139 |
|
|
|
1,473 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net gain from business divestiture |
|
— |
|
|
|
(313 |
) |
|
|
— |
|
|
|
— |
|
|
|
(313 |
) |
|
Purchase order cancellation fees |
|
(1 |
) |
|
|
(26 |
) |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
(32 |
) |
|
Restructuring and other, net |
|
1 |
|
|
|
(3 |
) |
|
|
2 |
|
|
|
(31 |
) |
|
|
(31 |
) |
|
Share-based compensation |
|
38 |
|
|
|
38 |
|
|
|
34 |
|
|
|
30 |
|
|
|
140 |
|
|
Strategic investment losses or impairment charges |
|
1 |
|
|
|
8 |
|
|
|
— |
|
|
|
43 |
|
|
|
52 |
|
|
Underutilization charges, net of depreciation and amortization |
|
— |
|
|
|
20 |
|
|
|
38 |
|
|
|
31 |
|
|
|
89 |
|
|
Other charges |
|
1 |
|
|
|
4 |
|
|
|
5 |
|
|
|
8 |
|
|
|
18 |
|
|
Non-GAAP Adjusted EBITDA |
$ |
498 |
|
|
$ |
404 |
|
|
$ |
278 |
|
|
$ |
216 |
|
|
$ |
1,396 |
|
The Company’s Non-GAAP measures are adjusted for the following items:
Accelerated depreciation, impairment and other charges related to cost saving efforts
These expenses are excluded in the non-GAAP measures due to the inconsistency in amount and frequency, and they are not normal operating expenses or indicative of the Company’s operating performance. Exclusion of these amounts provides a supplemental view of the Company’s operating performance to investors to enable them to evaluate the Company’s current operating performance compared to the past periods’ operating performance.
Net gain from business divestiture
The Company recorded a pre-tax net gain of
Net loss (gain) from early redemption of debt and termination of interest rate swap
From time to time, the Company incurs gains, losses and fees from the early redemption and repurchase of certain long-term debt instruments and termination of related interest rate swap agreements. The amount of these charges may be inconsistent in size and varies depending on the timing of the early redemption of debt and/or termination of interest rate swap. The Company does not believe these are part of its normal operating performance. Exclusion of these amounts provides a supplemental view of the Company’s operating performance to investors to enable them to evaluate the Company’s current operating performance compared to the past periods’ operating performance.
Purchase order cancellation fees
Purchase order cancellation fees are the costs incurred to cancel certain purchase commitments made with the Company’s suppliers for component and equipment purchases that will not be received due to change in forecasted demand. These charges are inconsistent in amount and frequency. The Company does not believe these are part of its normal operating expenses. Exclusion of these amounts provides a supplemental view to investors to evaluate the Company’s current operating performance compared to the past periods’ operating performance.
Restructuring and other, net
Restructuring and other, net are costs associated with restructuring plans that are primarily related to costs associated with reduction in the Company’s workforce, exiting certain facilities and other related costs, as well as charges or gains from sale of properties. These costs or benefits do not reflect the Company’s normal or ongoing operating performance and consequently the Company excludes these expenses to provide a supplemental view to investors to evaluate the Company’s current operating performance compared to the past periods’ operating performance.
Share-based compensation
These expenses consist primarily of expenses for employee share-based compensation. Given the variety of equity awards used by companies, the varying methodologies for determining share-based compensation expense, the subjective assumptions involved in those determinations, and the volatility in valuations that can be driven by market conditions outside the Company’s control, the Company believes excluding share-based compensation expense enhances the ability of management and investors to understand and assess the underlying performance of its business over time and compare it against the Company’s peers, a majority of whom also exclude share-based compensation expense from their non-GAAP results.
Strategic investment gains, losses and impairment charges
From time to time, the Company incurs gains, losses or impairment charges from strategic investments that are measured and accounted at fair value, under the equity method of accounting, as available-for-sale debt securities or adjust for downward or upward adjustments to the carrying value under the measurement alternative if an impairment or observable price adjustment is recognized in the current period that are not considered normal operating expenses or gains. The resulting expense, gain or impairment loss is inconsistent in amount and frequency and the Company excludes these amounts to provide a supplemental view to investors to evaluate the Company’s current operating performance compared to the past periods’ operating performance.
Other charges
The other charges primarily include IT transformation costs. These charges are inconsistent in amount and frequency and are excluded to provide a supplemental view to investors to evaluate the Company’s current operating performance compared to past periods’ operating performance.
Income tax adjustments
Provision or benefit for income taxes represents the tax effects of non-GAAP adjustments determined using a hybrid with and without method and effective tax rate for the applicable adjustment and jurisdiction.
Non-GAAP diluted share count adjustments
Using the if-converted method, diluted net income per share is calculated assuming that the excess value above the principal of the 2028 exchangeable notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be anti-dilutive. Non-GAAP shares used in diluted net income per share calculation excluded certain dilutive shares, which are expected to be offset partially or in full by the capped call transactions entered by the Company in conjunction with our 2028 exchangeable senior notes in order to reduce the potential dilution to the Company’s ordinary shares upon the conversion.
Free cash flow
Free cash flow is a non-GAAP measure defined as net cash provided by operating activities less acquisition of property, equipment and leasehold improvements. Free cash flow does not reflect non-cash items, net cash used or provided by financing activities and net cash used or provided by investing activities, other than acquisition of property, equipment and leasehold improvements. This non-GAAP financial measure is used by management to assess the Company’s sources of liquidity, capital structure and operating performance.
EBITDA, adjusted EBITDA and last twelve months (LTM) adjusted EBITDA
EBITDA is defined as net income (loss) before income tax expense, interest expense, interest income, depreciation and amortization. Adjusted EBITDA excludes certain expenses, gains and losses that the Company believes are not indicative of its core operating results. These adjustments primarily include impairment and other charges related to cost saving efforts, net loss (gain) from early redemption of debt, net gain from termination of interest rate swap, net gain from business divestiture, purchase order cancellation fees, restructuring and other, net, share-based compensation, strategic investment losses or impairment charges, other extraordinary charges such as factory underutilization charges. LTM adjusted EBITDA is defined as the total of last twelve months adjusted EBITDA. These non-GAAP financial measures are used by management to evaluate the Company’s debt portfolio and structure to comply with its financial debt covenants.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022235947/en/
Investor Relations Contact:
Shanye Hudson, (510) 661-1600
shanye.hudson@seagate.com
Media Contact:
Karin Taylor (408) 772-8279
karin.h.taylor@seagate.com
Source: Seagate Technology Holdings plc
FAQ
What was Seagate’s (STX) revenue for Q1 2025?
Seagate’s revenue for Q1 2025 was $2.17 billion.
How much did Seagate (STX) increase its quarterly dividend in Q1 2025?
Seagate increased its quarterly dividend by approximately 3% to $0.72 per share.
What was Seagate’s (STX) GAAP diluted EPS for Q1 2025?
Seagate’s GAAP diluted EPS for Q1 2025 was $1.41.
How much cash flow from operations did Seagate (STX) generate in Q1 2025?
Seagate generated $95 million in cash flow from operations in Q1 2025.