Seagate Technology has reported financial results for the second quarter of fiscal year 2015 ended January 2, 2015. For the second quarter, the Company reported revenue of approximately $3.7 billion, gross margin of 27.8%, net income of $933 million and diluted earnings per share of $2.78. On a non-GAAP basis, which excludes the net impact of certain items, including a $620 million net gain on the arbitration award, Seagate reported gross margin of 28.2%, net income of $452 million and diluted earnings per share of $1.35. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial tables.
During the second quarter, the Company generated approximately $1.4 billion in operating cash flow, paid cash dividends of $177 million and repurchased approximately 0.3 million ordinary shares for $18 million. There were 329 million ordinary shares issued and outstanding as of the end of the quarter. Cash, cash equivalents, restricted cash, and short-term investments totaled approximately $3.3 billion at the end of the quarter.
“Seagate’s second fiscal quarter performance is the result of consistent execution and our solid competitive positioning in the storage technology marketplace,” said Steve Luczo, Seagate’s chairman and chief executive officer. “In addition, our cash flow generation remains strong as we continue to effectively balance investing in our business with returning capital to shareholders.”
Seagate has issued a Supplemental Financial Information document. The Supplemental Financial Information is available on Seagate’s Investors website at www.seagate.com/investors.
Quarterly Cash Dividend
The Board of Directors has approved a quarterly cash dividend of $0.54 per share, which will be payable on February 24, 2015 to shareholders of record as of the close of business on February 10, 2015. 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.
