Seagate last week released its official financial results for the first quarter of fiscal year 2017, bringing in $2.8 billion - a fraction less than its forecast $2.9 billion.
The cost of revenue reached $2 billion, less than its $2.2 billion in 2015.
“In response to strong cloud storage customer demand, Seagate delivered record levels of exabyte shipments, and generated strong revenues, margin and cash flow in the September quarter. In addition, as a result of our operating expense management, the company’s non-GAAP earnings per share increased by 85% year over year,” explains Steve Luczo, Seagate’s chairman and chief executive officer.
“As the demand for HDD storage continues to benefit from the shift to data driven cloud based architectures, Seagate is in a strong position to grow its businesses, improve margins and continue with its dividend and buyback capital allocation objectives,” Luczo continues.
The company's gross margin reached 28.6%, while its net income earned $167 million. Diluted earnings per share are worth $0.55.
The company's non-GAAP financials include gross margin of 29.5%, net income of $299 million and diluted earnings per share of $0.99.
The company states that operating cash flow generated $592 million, while it also repurchased 3 million ordinary shares for $101 million. Currently 299 million ordinary shares are issued and outstanding. Its cash, equivalents and short-term investments hit $1.5 billion.