Seagate Shares Reports on Revenue and Profits for Fiscal Year 2012
Yesterday, Seagate reported its financial results for the quarter and fiscal year as it ended June 29, 2012. During the fourth quarter, on a GAAP basis, the company reported revenue of approximately USD4.5 billion, gross margin of 33.1%, net income of US1.0 billion and diluted earnings per share of USD2.37. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported gross margin of 33.6% and diluted earnings per share of USD2.41.
In the June quarter, Seagate generated approximately USD1.4 billion in cash from operations, paid cash dividends of USD106 million and used approximately USD1.2 billion to redeem approximately 45 million ordinary shares. Through the first half of 2012, Seagate has also redeemed approximately 88 million ordinary shares, representing approximately 19% of the company's market capitalization. Cash, cash equivalents, restricted cash, and short-term investments totaled USD2.2 billion at the end of the fourth quarter, a sequential increas of approximately USD67 million.
Seagate's fiscal year ended June 29 and on a GAAP basis, Seagate reported revenue of USD14.9 billion, gross margin of 31.4%, net income of USD2.9 billion and diluted earnings per share of USD6.49. On a non-GAAP basis, the company reported gross margin of 31.7% diluted earnings per share of USD6.75. In fiscal year 2012, Seagate returned over 85% of its operating cash flow to shareholders in the form dividends and share redemptions.
“As we announced previously, we were disappointed not to meet our revenue and margin plan for the fourth quarter as a result of the industry's faster recovery from the supply chain disruption and isolated supplier issue that we experienced,” said Steve Luczo, Seagate Chairman and Chief Executive Officer. “Nevertheless, we are pleased to have achieved record revenue and unit shipments for the June quarter, which enabled Seagate to continue to return significant value to shareholders through dividends and share purchases.”
Besides just these reports, Seagate's Board of Directors have also approved a quarterly cash dividend of USD0.32 per share, which will be payable on August 29, 2012 to shareholders of record as the close of business on August 14, 2012. 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.
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