April 30, 2014 (Wed): Seagate plc, a world leader in storage solutions, today reported financial results for the third quarter of fiscal year 2014 ended March 28, 2014. For the third quarter, the Company reported revenue of approximately US $3.4 billion, gross margin of 28.2%, net income of US $395 million and diluted earnings per share of US $1.17. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported gross margin of 28.5%, 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 third quarter, the Company generated approximately US $443 million in operating cash flow, paid cash dividends of US $140 million and repurchased 3.5 million ordinary shares for US $184 million. There were 326 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 $2.3 billion at the end of the quarter.
“Seagate’s March quarter results reflect ongoing effective execution in a dynamic market environment,” said Steve Luczo, Seagate’s chairman and chief executive officer. “We are positioning the Company to lead in the evolving storage ecosystem by leveraging and investing in our market-leading product portfolio to enable shifts in the storage landscape in hyperscale, performance and mobility. In addition, we are maintaining our focus on operational discipline through conservative demand forecasting and supply management.”
Seagate has issued a Supplemental Commentary document. The Supplemental Commentary will not be read during today’s call, but is available on Seagate’s Investors website at www.seagate.com/investors.
Quarterly Cash Dividend
The Board of Directors has approved a quarterly cash dividend of US $0.43 per share, which will be payable on May 28, 2014 to shareholders of record as of the close of business on May 14, 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.