Seagate Technology's operational headquarters in Fremont, California. — Photo Seagate
Seagate Technology Holdings PLC (Seagate) reported financial results for its fiscal second-quarter ending December 31, 2022.
The company generated US$521 million in cash flow from operations and $426 million in free cash flow during the fiscal second quarter of 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.
“The calendar year 2021 was an outstanding year for Seagate. Compared with the prior calendar year, we grew revenue by 18 per cent and more importantly, delivered free cash flow growth of 39 per cent, which we are deploying effectively into our long-standing capital returns program,” said Dave Mosley, Seagate’s chief executive officer.
Cash and cash equivalents totalled $1.5 billion. There were 219 million ordinary shares issued and outstanding as of the end of the quarter. The company’s Board of Directors 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 calendar year was capped by strong December quarter performance including our highest revenue level in over 6-years, supported by cloud data centre 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 favourable demand trends support revenue expansion consistent with our long-term financial model range of 3-to-6 per cent growth,” said Mosely.
The company also provided a forecast for its fiscal third-quarter: revenue of $2.9 billion, plus or minus $150 million; and Non-GAAP diluted EPS of $2.00, plus or minus $0.20. Guidance regarding non-GAAP diluted EPS excludes known charges related to the amortisation of acquired intangible assets of $0.02 per share and estimated share-based compensation expenses of $0.17 per share. — VNS