July 30th, 2018 by Adam Armstrong
Seagate Releases 4Q18 & Fiscal Year Earnings
Today Seagate Technology announced both its fourth quarter financial results (quarter ended June 29, 2018) and its year-end financial results. The company saw some pretty good numbers in both the quarter and full year. Seagate also announced the resignation of its CFO, David H. Morton, Jr., as he has taken a role at another company.
Looking at the numbers for the quarter, Seagate is reporting a revenue of $2.8 billion, holding steady with last quarter’s $2.8 billion. The company is reporting a GAAP net income of $461 million (or a diluted EPS of $1.57) and a non-GAAP net income of $475 million (or a diluted EPS of $1.62). Gross margin was 31.9% GAAP and 32.4% non-GAAP. Cash flow from operations was $468 million down from $558 million in the last quarter.
For the year, Seagate is reporting $11.2 billion in revenue up from $10.8 billion the year prior. The company had a gross margin of 30.1% up form 29.5% in 2017. Seagate is reporting a net income of $1.2 billion up from last year’s $772 million. The company states that they have generated approximately $2.1 billion in operating cash flow and paid cash dividends of $726 million and repurchased 10 million ordinary shares for $361 million. Seagate’s board of directors have approved of 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.
Throughout the year the company’s stock has slowly risen. The news of an amicable transition of leadership as well as good numbers show the stock holding steady so far since announcing the numbers. For the quarter the company shipped 92.9 Exabytes with the drives averaging 2.5TB each. The company is also slowly pushing more into the SSD market with the release of its BarraCuda SSD.