Seagate Technology plc Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 29, 2017; Provides Total Revenue Guidance for the Third Quarter Ending March 2018 and Fiscal Year 2018
January 29, 2018 at 08:01 am
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Seagate Technology plc reported unaudited consolidated earnings results for the second quarter and six months ended December 29, 2017. For the quarter, the company reported revenue of $2,914 million compared to $2,894 million a year ago. Income from operations was $433 million compared to $370 million a year ago. Income before income taxes was $371 million compared to $310 million a year ago. Net income was $159 million or $0.55 per basic and diluted share compared to $297 million or $1.00 per basic and diluted share a year ago. Non-GAAP net income was $431 million or $1.48 per diluted share. During the second quarter, the company generated $850 million in cash flow from operations and $773 million in free cash flow. Capital expenditures were $77 million for the December quarter, for supporting the continued ramp of new highest-capacity HDD products and maintenance capital.
For the six months, the company reported revenue of $5,546 million compared to $5,691 million a year ago. Income from operations was $688 million compared to $592 million a year ago. Income before income taxes was $559 million compared to $483 million a year ago. Net income was $340 million or $1.17 per diluted share compared to $464 million or $1.55 per diluted share a year ago. Net cash provided by operating activities was $1,087 million compared to $1,247 million a year ago. Acquisition of property, equipment and leasehold improvements was $201 million compared to $235 million a year ago. Non-GAAP net income was $710 million or $2.44 per diluted share. The company announced $900 million in free cash flow.
For the third quarter ending March 2018, The company expects capital expenditures to be approximately $120 million, primarily for maintenance capital and some incremental capital to address the strong cloud market demand. The company expects total revenue to be down 5% to 7% sequentially from the December quarter. This represents lower sequential revenue declines than the last few years and year-over-year revenue growth for Seagate.
The company anticipated capital expenditures to remain less than 5% of total consolidated revenue for fiscal year 2018.
Seagate Technology Holdings plc provides mass-data storage infrastructure solution. The Companyâs principal products are hard disk drives, commonly referred to as disk drives, hard drives (HDDs). In addition to HDDs, the Company produces a range of data storage products, including solid state drives (SSDs), solid state hybrid drives, storage subsystems, as well as a scalable edge-to-cloud mass data platform. Its HDD products are designed for mass capacity storage and legacy markets. Mass capacity storage involves use cases, such as hyperscale data centers and public clouds, as well as emerging use cases. The Companyâs HDD and SSD product portfolio includes Serial Advanced Technology Attachment, Serial Attached SCSI and Non-Volatile Memory Express based designs to support a variety of mass capacity and legacy applications. Its systems portfolio includes storage subsystems for enterprises, cloud service providers, scale-out storage servers and original equipment manufacturers.
Seagate Technology plc Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended December 29, 2017; Provides Total Revenue Guidance for the Third Quarter Ending March 2018 and Fiscal Year 2018