May 3rd, 2018 by Adam Armstrong
Seagate Reports 3Q18 Earnings
Seagate Technology reported its financial results for the quarter ended March 30, 2018, the company’s third fiscal quarter of the year. The numbers looked good just beating expectations and the company is reporting a large growth in shipments of capacity. Their stock, too, tumbled a bit after the numbers were announced.
Looking at the numbers, Seagate is reporting a revenue of $2.8 billion, down from last quarter’s $2.9 billion. The company is reporting a GAAP gross margin of 30.2% and a non-GAAP gross margin was 30.8%. For net income, Seagate is reporting $381 million (or $1.31 diluted earnings per share) GAAP and $424 million (or $1.46 diluted earnings per share) non-GAAP. The company is also reporting $558 million in cash flow from operations and $489 million in free cash flow.
The company reported that it as approved a quarterly cash dividend of $0.63 per share, which will be payable on July 5, 2018 to shareholders of record as of the close of business on June 20, 2018. And it has shipped 87.4EB of HDD capacity averaging 2.4TB per drive.
While most of the numbers look good the company is still putting nearly all of its eggs in the HDD basket. Seagate is a major player in the spinning disk for enterprise but its competitors, such as WD, offer a full line of products that make them seem to be a better future bet. On the flip side, Seagate could announce a new line of NVMe SSDs in the future and prove me wrong.