Seagate Technology reaps good start for new fiscal year

October 25, 2011 | 13:53

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Seagate Technology plc (NASDAQ: STX) today reported financial results for the quarter ended September 30, 2011.

The company shipped 51 million disk drives and reported revenue of $2.8 billion, gross margin of 19.5 per cent, net income of $140 million and diluted earnings per share of $0.32.

On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported net income of $146 million and diluted earnings per share of $0.34 for the quarter ended September 30, 2011.

Additionally, Seagate returned $75 million to shareholders in the form of a dividend and repurchased $128 million of ordinary shares during the first fiscal quarter.

The European Commission announced on October 19, 2011 that they have approved under the EU Merger Regulation, Seagate’s proposed acquisition of Samsung’s hard disk drive assets.

The company will continue to work with other regulatory bodies to secure additional approvals in the coming weeks. Seagate believes the transaction will close by the end of this year.

The company’s board of directors has also approved a quarterly cash dividend of $0.18 per share which will be payable on November 18, 2011 to shareholders of record as of the close of business on November 3, 2011.

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.