Seagate Technology plc (NASDAQ: STX) (the “Company” or “Seagate”) reported financial results for the quarter ended September 28, 2018.
“In the September quarter, we achieved strong financial results in revenue, profitability and cash flow, reflecting solid execution and positive demand for our products across multiple markets. By delivering competitive cost-effective mass storage solutions, Seagate is a crucial supplier in supporting the Data Age digital transformations that are happening across the storage marketplace. We believe our deep storage industry expertise, leading technology portfolio and focused execution will continue to drive long-term success for the company and deliver value to our shareholders,” said Dave Mosley, Seagate’s chief executive officer.
Quarterly Financial Results:
| GAAP | Non-GAAP | ||||
| FQ1 2019 | FQ1 2018 | FQ1 2019 | FQ1 2018 | ||
| Revenue ($M) | $2,991 | $2,632 | $2,992 | $2,632 | |
| Gross Margin | 30.5% | 28.0% | 31.0% | 29.0% | |
| Net Income ($M) | $450 | $181 | $496 | $279 | |
| Diluted Earnings Per Share | $1.54 | $0.62 | $1.70 | $0.96 | |
In the first quarter, the Company generated $587 million in cash flow from operations and $410 million in free cash flow, paid cash dividends of $181 million and repurchased 3 million ordinary shares for $150 million. Cash and cash equivalents totaled $1.9 billion at the end of the quarter.
Quarterly Cash Dividend:
The Board of Directors of the Company (the “Board”) has approved a quarterly cash dividend of $0.63 per share, which will be payable on January 2, 2019 to shareholders of record as of the close of business on December 19, 2018. 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.