Seagate Technology released its second quarter earnings for 2016 with revenue being up from the previous quarter but down from this time last year. Seagate’s second quarter earnings are about on par with WDC’s 2Q. In other words, their results are not fantastic but they are leaning more positive than say Nimble’s Q3 or Violin Memory’s Q3.
Seagate Technology released its second quarter earnings for 2016 with revenue being up from the previous quarter but down from this time last year. Seagate’s second quarter earnings are about on par with WDC’s 2Q. In other words, their results are not fantastic but they are leaning more positive than say Nimble’s Q3 or Violin Memory’s Q3.
Seagate is reporting a revenue just under $3 billion, $2.986, which is up from last quarter’s $2.925 but down from the same quarter last year, $3,696 billion. The company also reported a gross margin of 24.8%(again up from that quarter’s 23.6% but down from 2Q last year 27.8%), net income of $165 million (up almost 5 times over last quarter’s $34 million but down over 82% from this quarter last year) and diluted earnings per share of $0.55 (again up 5 times from last quarter but down considerable from a year ago when it was at $2.78). Seagate was able to produce $382 million in operating cash flow this quarter and paid out $188 million in cash dividends while buying back 2.9 million shares of its ordinary stock. At the end of the quarter, Seagate had cash, cash equivalents, and short-term investments totaled approximately $1.3 billion.
Seagate may not be performing as well as it was this quarter last year it is definitely moving up. The company has shipped 60.6 exabytes, growing 10%, quarter-over-quarter. It recently acquired DotHill and has been shipping some very large capacity non-SMR HDDs including its 10TB Enterprise HDD, its 8TB NAS HDD, and its 8TB Surveillance HDD. One area where some think Seagate is lagging is in flash. While more known for its HDDs, Seagate is starting to move more and more into the flash market with its SAS 1200.2 SSD and its SSD it developed with Micron the Seagate 1200.2/Micron S600DC Enterprise SAS SSD.
Seagate has seen their stock jump up a bit before leveling off higher after the release of its earnings.
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