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Seagate Technology Reports Fiscal Fourth Quarter and Year-End 2011 Financial Results

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Demand for disk drive storage continues to grow as quarterly shipments reach a record 52 million units and fiscal year shipments increase to a record 199 million units

 

CUPERTINO, Calif. - July 20, 2011 - Seagate Technology plc (NASDAQ: STX) today reported financial results for the quarter ended July 1, 2011. The company shipped 52 million disk drives and reported revenue of $2.9 billion, gross margin of 19.3%, net income of $119 million and diluted earnings per share of $0.27. On a non-GAAP basis, which excludes the net impact of restructuring, write-down of an equity investment, gain on the sale of one of its facilities, and expenses related to the previously announced transaction with Samsung, Seagate reported net income of $126 million and diluted earnings per share of $0.28 for the quarter ended July 1, 2011.

 

For the fiscal year ended July 1, 2011, the company reported revenue of $11.0 billion, gross margin of 19.6%, net income of $511 million and diluted earnings per share of $1.09. On a non-GAAP basis, which excludes the net impact of loss on redemption of debt, purchased intangibles amortization, restructuring, write-down of an equity investment, gain on the sale of one of its facilities, expenses related to the previously announced transaction with Samsung and tax adjustments related to prior fiscal years, Seagate reported net income of $578 million and diluted earnings per share of $1.24. Additionally, Seagate returned $77 million to shareholders in the form of a dividend and repurchased $822 million of Seagate ordinary shares.

 

"Seagate and the industry are benefitting from the significant demand for storage related to new applications and architectures associated with mobile and connected devices," said Steve Luczo, Seagate chairman, president and CEO. "Because hard disk drive storage is a fundamental technology for cloud service providers, data centers and all other network-based content providers, total industry demand grew almost 40% in fiscal year 2011 to 330 million terabytes. For the June quarter, Seagate's average capacity per drive shipped grew to approximately 590 GB an increase of 39% year-over-year. As more online content and services become available to billions of connected mobile devices, we expect demand for storage capacity to continue to grow and Seagate to benefit from this growth."

 

For reconciliation of non-GAAP to GAAP results, see accompanying financial tables.

 

Investor Communications

Seagate will hold a conference call to review its fourth fiscal quarter and year-end results today at 2:00 p.m. Pacific Time. The conference call will consist of opening comments from Steve Luczo, CEO, followed by a question and answer session with the executive management team. During today's conference call, the company will provide an outlook for its first fiscal quarter of 2012, including key underlying assumptions.

 

Seagate has issued a Supplemental Commentary document. The Supplemental Commentary will not be read during today's call, but rather it is available in the investor relations section of seagate.com.

 

Dividend

The Board of Directors has approved a quarterly cash dividend of $0.18 per share which will be payable on August 26, 2011 to shareholders of record as of the close of business on August 5, 2011. 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.

 

Conference Call

The conference call can be accessed online at http://www.seagate.com/investors or by telephone as follows: USA: (866) 356-3377 International: (617) 597-5392 Participant Passcode: 85406145

 

Replay

A replay will be available beginning today at approximately 6:00 p.m. Pacific Time. The replay can be accessed from seagate.com.

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