Seagate Ships 52 Million Drives, but Earnings Down Nearly 70%
Wall Street expected hard-disk drive maker Seagate Technology Inc’s fiscal four-quarter earnings to slide down to 25 cents a share, but it looks like those experts were off today. Seagate announced this afternoon that the company shipped 52 million disk drives and reported revenue of $2.9 billion, gross margin of 19.3%, net income of $119 million and diluted earnings per share of $0.27. This beat what the street expected, but still an earnings decline of nearly 70%.
For the fiscal year ended July 1, 2011, the company reported revenue of $11.0 billion, gross margin of 19.6%, net income of $511 million and diluted earnings per share of $1.09. On a non-GAAP basis, which excludes the net impact of loss on redemption of debt, purchased intangibles amortization, restructuring, write-down of an equity investment, gain on the sale of one of its facilities, expenses related to the previously announced transaction with Samsung and tax adjustments related to prior fiscal years, Seagate reported net income of $578 million and diluted earnings per share of $1.24. Additionally, Seagate returned $77 million to shareholders in the form of a dividend and repurchased $822 million of Seagate ordinary shares.
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