SEAGATE TECHNOLOGY REPORTS FISCAL FOURTH QUARTER AND FISCAL YEAR 2018 FINANCIAL RESULTS
Fiscal Year 2018:
- Revenues up 4% year-over-year
- Diluted Earnings per Share up 57% year-over-year
- Cash Flow from Operations up 10% year-over-year
- Exabyte shipments up 29% year-over-year
Seagate Technology plc (NASDAQ: STX) (the “Company” or “Seagate”)
today reported financial results for the quarter and fiscal year ended June 29,
2018. For the fourth quarter, the Company reported revenue of $2.8 billion,
gross margin of 31.9%, net income of $461 million and diluted earnings per
share of $1.57. On a non-GAAP basis, which excludes the net impact of certain
items, Seagate reported gross margin of 32.4%, net income of $475 million and
diluted earnings per share of $1.62.
During the fourth quarter, the Company generated $468 million in cash
flow from operations and $372 million in free cash flow.
For the fiscal year ended June 29, 2018, the Company reported revenue
of $11.2 billion, gross margin of 30.1%, net income of $1.2 billion and diluted
earnings per share of $4.05. On a non-GAAP basis, Seagate reported gross margin
of 30.7%, net income of $1.6 billion and diluted earnings per share of $5.51.
In fiscal year 2018, the Company generated approximately $2.1 billion
in cash flow from operations and $1.7 billion in free cash flow, paid cash
dividends of $726 million and repurchased 10 million ordinary shares for $361
million. Seagate's balance sheet remains healthy and during the fiscal year the
Company repurchased $214 million of outstanding debt and invested approximately
$1.3 billion, as part of a consortium led by Bain Capital Private Equity, in
the acquisition of Toshiba Memory Corporation. Cash and cash equivalents
totaled approximately $1.9 billion at the end of the fiscal year. There were
287 million ordinary shares issued and outstanding as of the end of the fiscal
year.
For a detailed reconciliation of GAAP to non-GAAP results, see
accompanying financial tables.
Seagate has issued a Supplemental Financial Information document,
which is available on Seagate’s Investors Relations website at www.seagate.com/investors.
Quarterly Cash Dividend
The Board of Directors of the Company (the “Board”) has approved a
quarterly cash dividend of $0.63 per share, which will be payable on October 3,
2018 to shareholders of record as of the close of business on September 19,
2018. 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.
Investor Communications
Seagate management will hold a public webcast today at 6:00 a.m.
Pacific Time that can be accessed on its Investor Relations website at www.seagate.com/investors. During
today’s webcast, the Company will provide an outlook for its first fiscal
quarter of 2019, including key underlying assumptions.
An archived audio webcast of this event will be available on Seagate’s
Investors Relations website at www.seagate.com/investors
shortly following the event conclusion.
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