Seagate Technology plc (NASDAQ:STX), a world leader in storage
solutions, today announced selected preliminary financial
information for its fiscal fourth quarter of 2015, which ended on
July 3, 2015.
Seagate expects to report revenue of approximately $2.9 billion
and non-GAAP gross margin of approximately 27.0% for the
fiscal fourth quarter 2015. These preliminary results compare to
the Company’s previously forecasted range for fiscal fourth
quarter of revenue of $3.2 to $3.3 billion and non-GAAP gross
margin of approximately 28.5%. The difference was driven primarily
by lower than expected intra-quarter demand. Non-GAAP operating
expenses are expected to be approximately $530 million, below
previously forecasted non-GAAP operating expenses of approximately
$555 million.
Seagate expects to report unit shipments for the fiscal fourth
quarter of approximately 45 million, maintaining approximately
40% market share and reflecting approximately 52 exabytes. Cash,
cash equivalents, restricted cash and short term
investments totaled approximately $2.5 billion at the end of
the quarter.
Conference Call Details for Fiscal Fourth Quarter and Year End
2015 Financial Results
Seagate will report its fiscal fourth quarter and year-end
2015 financial results before the market opens on Friday July
31, 2015. The investment community conference call to discuss
these results will take place that day at 6:00
a.m. Pacific/9:00 a.m. Eastern Time. The live event can
be accessed online at Seagate’s Investor Relations website
at www.seagate.com/investors.
An archived audio webcast of this event will be available
shortly following the event conclusion.
About Seagate
Seagate creates space for the human experience by innovating how
data is stored, shared and used. Learn more at www.seagate.com.
This Press Release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, each as
amended, including, in particular, statements about the Company’s
financial results for the fiscal quarter ended July 3, 2015. These
statements identify prospective information and may include words
such as “expects,” “intends,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” “projects” and similar expressions. These
forward-looking statements are based on information available to
the Company as of the date of this Press Release and are based on
management’s current views and assumptions. These forward-looking
statements are conditioned upon and also involve a number of known
and unknown risks, uncertainties, and other factors that could
cause actual results, performance or events to differ materially
from those anticipated by these forward-looking statements. Such
risks, uncertainties, and other factors may be beyond the Company’s
control and may cause the Company’s financial results to differ
materially from the expectations described in this Press Release
and may pose a risk to the Company’s operating and financial
condition. Such risks and uncertainties include, but are not
limited to: items may be identified during the Company’s financial
statement closing process that cause adjustments to the estimates
included in the Press Release, the uncertainty in global economic
conditions, as consumers and businesses may defer purchases in
response to tighter credit and financial news; the impact of the
variable demand and adverse pricing environment for disk drives,
particularly in view of current business and economic conditions;
the Company’s ability to successfully qualify, manufacture and sell
its disk drive products in increasing volumes on a cost-effective
basis and with acceptable quality, particularly the new disk drive
products with lower cost structures; the impact of competitive
product announcements; currency fluctuations that may impact our
margins and international sales; possible excess industry supply
with respect to particular disk drive products; disruptions to our
supply chain or production capabilities; and fluctuations in
interest rates. Information concerning risks, uncertainties and
other factors that could cause results to differ materially from
the expectations described in this Press Release is contained in
the Company’s Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission on August 7, 2014, the “Risk
Factors” section of which is incorporated into this Press Release
by reference, and other documents filed with or furnished to the
Securities and Exchange Commission. These forward-looking
statements should not be relied upon as representing the Company’s
views as of any subsequent date and the Company undertakes no
obligation to update forward-looking statements to reflect events
or circumstances after the date they were made.
The inclusion of Seagate’s website address in this press release
is intended to be an inactive textual reference only and not an
active hyperlink. The information contained in, or that can be
accessed through, Seagate’s website and social media channels are
not part of this press release.
Use of Non-GAAP Information
The Company has provided non-GAAP measures of gross margin and
operating expenses, which are adjusted from results based on GAAP
to exclude certain expenses, gains and losses. The Company believes
non-GAAP results provide useful information to both management and
investors as these non-GAAP results exclude certain expenses, gains
and losses that we believe are not indicative of our core operating
results and because they are consistent with the financial models
and estimates published by financial analysts who follow the
Company.
For the ThreeMonths
EndedJuly 3, 2015
Reconciliation of GAAP Gross Margin: Preliminary GAAP Gross Margin
26.3 % Non-GAAP adjustments:
A
0.7 % Preliminary non-GAAP Gross Margin 27.0 %
A Gross margin has been adjusted on a non-GAAP basis to
exclude the write off of certain discontinued inventory and the
amortization of intangibles associated with acquisitions and other
acquisition related expenses.
For the ThreeMonths
EndedJuly 3, 2015
Reconciliation of Operating Expense: Preliminary GAAP Operating
Expense $ 586 Non-GAAP adjustments: Product Development
A (2
) Marketing and administrative
B (12 ) Amortization of
intangibles
C (33 ) Restructuring and other, net
D
(9 ) Preliminary non-GAAP Operating Expense $ 530
A Product development expense has been adjusted on a
non-GAAP basis to exclude the impact of integration costs
associated with acquisitions.
B Marketing and administrative expense has been adjusted
on a non-GAAP basis primarily to exclude the write off of certain
fixed assets and the impact of integration costs associated with
acquisitions.
C Amortization of intangibles primarily related to our
acquisitions has been excluded on a non-GAAP basis.
D Restructuring and other, net, has been adjusted on a
non-GAAP basis primarily related to a reduction in our work force
as a result of our ongoing focus on cost efficiencies in all areas
of our business.
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version on businesswire.com: http://www.businesswire.com/news/home/20150713005363/en/
Investor Relations Contact:Seagate Technology plcMichael
Busselen, 408-658-1222IR@Seagate.com
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