November 4, 2014 (Tue): Seagate Technology plc (the “Company” or “Seagate”) reported financial results for the first quarter of fiscal year 2015 ended October 3, 2014. For the first quarter, the Company reported revenue of approximately US$3.8 billion, gross margin of 27.8%, net income of US$381 million and diluted earnings per share of USUS$1.13. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported gross margin of 28.1%, net income of US$453 million and diluted earnings per share of US$1.34. For a detailed reconciliation of GAAP to non-GAAP results, see accompanying financial tables.
During the first quarter, the Company generated approximately US$602 million in operating cash flow, paid cash dividends of US$140 million and repurchased approximately 3 million ordinary shares for US$183 million. There were 327 million ordinary shares issued and outstanding as of the end of the quarter. Cash, cash equivalents, restricted cash, and short-term investments totaled approximately US$2.2 billion at the end of the quarter.
“We achieved strong financial results in the first fiscal quarter, driven by consistent execution and better-than-anticipated market demand for our PC and Cloud storage products,” said Steve Luczo, Seagate’s chairman and chief executive officer. “We continue to improve our position in the evolving storage market by leveraging and investing in our core storage technology and expanding our product portfolio with Cloud systems and solutions and integrated flash technology. We remain confident in our cash flow generation and the opportunities ahead for Seagate as evidenced by our recently announced target annual dividend increase of 26% to US$2.16.”
Seagate has issued a Supplemental Financial Information document. The Supplemental Financial Information is available on Seagate’s Investors website at www.seagate.com/investors.
Quarterly Cash Dividend
As previously disclosed on October 22, 2014, the Board of Directors has approved a quarterly cash dividend of US$0.54 per share, which will be payable on November 25, 2014 to shareholders of record as of the close of business on November 11, 2014. 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.