Seagate Technology Reports Revenue Drop

Seagate Technology has reported its financial results for the fiscal third quarter ending March 29, 2024. The company's revenue for this period was $1.66 billion, which is a decrease from the revenue of $1.86 billion in the same quarter of the previous year.

In terms of earnings per share (EPS), the GAAP diluted EPS was $0.12 for the fiscal Q3 2024, a significant improvement from the loss of $2.09 per share in fiscal Q3 2023. On a non-GAAP basis, the diluted EPS was $0.33, compared to a loss of $0.28 in the same quarter of the previous year.

The company's gross margin also improved, reaching 25.7% in fiscal Q3 2024 compared to 17.2% in fiscal Q3 2023. Similarly, the operating margin showed significant improvement, standing at 8.6% in fiscal Q3 2024 compared to a negative operating margin of 16.9% in fiscal Q3 2023.

Seagate's net income for fiscal Q3 2024 was $25 million, a substantial increase from a net loss of $433 million in fiscal Q3 2023.

The company generated $188 million in cash flow from operations and $128 million in free cash flow during the fiscal third quarter. Seagate also returned $147 million of capital to shareholders through its quarterly dividend. As of the end of the quarter, the company had $795 million in cash and cash equivalents.

Looking ahead, Seagate declared a quarterly cash dividend of $0.70 per share, payable on July 5, 2024, to shareholders of record as of the close of business on June 20, 2024.

Seagate's CEO, Dave Mosley, expressed optimism about the company's performance, citing growth in revenue and a significant increase in non-GAAP EPS. He also highlighted the company's strong operating discipline and price execution as contributing factors to the improved financial results. Today the company's shares have moved 1.6% to a price of $86.53. For more information, read the company's full 8-K submission here.

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