Seagate Technology Holdings plc reported significant financial improvements for the three months ended September 27, 2024, compared to the same period in the previous fiscal year. Revenue surged to $2,168 million, a substantial increase from $1,454 million for the three months ended September 29, 2023. This growth was primarily driven by heightened demand for high-capacity nearline drives from cloud customers and favorable pricing actions, with OEMs contributing 81% of total revenue, up from 71% a year earlier.
The company's profitability also saw a remarkable turnaround, with net income reaching $305 million, compared to a net loss of $184 million in the prior year. Income from operations was $403 million, a significant recovery from a loss of $129 million in the same quarter of the previous year. The gross margin improved to 33%, up from 10% in the same quarter last year, reflecting a favorable product mix and pricing strategies.
Total operating expenses increased to $1,765 million from $1,583 million year-over-year, influenced by higher product development costs, which rose by $23 million due to increased compensation and benefits. Marketing and administrative expenses also increased by $24 million compared to the same quarter last year, primarily due to higher employee-related costs.
Seagate's balance sheet showed total assets of $7,972 million as of September 27, 2024, up from $7,739 million at the end of the previous quarter. Cash and cash equivalents decreased to $1,239 million from $1,358 million, primarily due to $147 million in dividends paid and $68 million in capital expenditures. The company reported a total shareholders’ deficit of $(1,300) million, an improvement from $(1,491) million in the previous quarter.
Strategically, Seagate issued $1.5 billion in 3.50% Exchangeable Senior Notes in September 2023, which helped repay existing term loans. The company also entered into capped call transactions to manage equity market risks associated with its deferred compensation plan. Additionally, Seagate is under a settlement agreement with the U.S. Department of Commerce, requiring quarterly payments of $15 million over five years related to sales of hard disk drives to Huawei.
Overall, Seagate's performance in the September 2024 quarter reflects a strong recovery in revenue and profitability, driven by increased demand in key markets and strategic financial management.
About Seagate Technology Holdings plc
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.