Seagate Posts First Quarter 2017 Financial Results

Seagate is one of the technology industry’s leading manufacturers and produces a huge range of storage solutions ranging from budget SATA drives all the way up to larger performance devices. The company’s latest financials have just been revealed for the first quarter of 2017, ending September 30th, 2016. Seagate recorded a revenue of $2.8 billion, gross margin of 28.6%, net income of $167 million and diluted earning per share of $0.55. When using the non-GAAP method, the company amassed a net income of $299 million, 29.5% gross margin and $0.99 diluted earnings per share. Seagate generated $592 million in operating cash flow during the first quarter and repurchased 3 million shares for $101 million. Not only that, short-term investments came to approximately $1.5 billion. Steve Luczo, Seagate’s chairman and chief executive officer commented on the results and said:

“In response to strong cloud storage customer demand, Seagate delivered record levels of exabyte shipments, and generated strong revenues, margin and cash flow in the September quarter. In addition, as a result of our operating expense management, the company’s non-GAAP earnings per share increased by 85% year over year,”

“As the demand for HDD storage continues to benefit from the shift to data driven cloud based architectures, Seagate is in a strong position to grow its businesses, improve margins and continue with its dividend and buyback capital allocation objectives.”

The Board of Directors approved a quarterly cash dividend of $0.63 per share which will be payable on January 4th, 2017. The financial results are pretty positive and it seems Seagate is responding to market trends well.