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SEAGATE TECHNOLOGY REPORTS FOURTH QUARTER AND FISCAL YEAR 2020 FINANCIAL RESULTS
Fiscal Q4 2020 Highlights
–Revenue of $2.52 billion
–GAAP operating margin of 10.6%; non-GAAP operating margin of 14.8%
–GAAP diluted earnings per share (EPS) of $0.64; non-GAAP diluted EPS of $1.20
–Cash flow from operations of $388 million and free cash flow of $274 million
–Revenue from mass capacity storage markets increased 35% year-over-year and represented 63% of FQ4 HDD revenue
Fiscal Year 2020 Highlights
–Revenue of $10.51 billion
–GAAP operating margin of 12.4%; non-GAAP operating margin of 14.7%
–GAAP diluted EPS of $3.79; non-GAAP diluted EPS of $4.95
–Cash flow from operations of $1.7 billion and free cash flow of $1.1 billion
–Returned $1.5 billion to shareholders through dividends and share repurchases
–Revenue from mass capacity storage markets increased 25% year-over-year and represented 57% of annual HDD revenue
FREMONT, CA - July 28, 2020 - Seagate Technology plc (NASDAQ: STX) (the “Company” or “Seagate”) today reported financial results for its fourth quarter and fiscal year ended July 3, 2020.
“The June quarter was led by robust cloud and data center demand, which drove record exabyte shipments for our nearline mass capacity drives and strongly contributed to the Company’s overall revenue and solid free cash flow generation. However, continued economic uncertainty and COVID-19 related disruptions impacted demand in other key end markets including video and image applications, mission critical and consumer markets and also impacted profitability as we incurred higher logistics and labor costs which together weighed on our fourth quarter results,” said Dave Mosley, Seagate’s chief executive officer.
“We are focused on managing the business well and executing on what we can control. Fiscal 2020 marked a strong year of progress as we grew mass capacity storage revenue by 25% and increased our overall revenue. We executed our technology roadmap, strengthened our balance sheet and delivered on our capital return program. Entering fiscal year 2021, the level of macro uncertainty remains high and we will continue to carefully manage our cash and expenses. However, we anticipate demand across our end markets to improve within the next six months and currently model revenue to be fairly flat in fiscal year 2021, supported by the strength of our mass capacity product portfolio. Longer-term, the unabated growth in data at the edge and in the cloud is driving secular demand for mass capacity storage and we believe Seagate’s financial strength and innovative product portfolio position us well for these trends.”
The following information was filed by Seagate Technology Plc (STX) on Tuesday, July 28, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.