Seagate Technology Q1 Profit And Revenues Down

(RTTNews) - Seagate Technology Plc (STX) reported that its net income for the first-quarter fell from last year. Quarterly revenues declined 22.7% from last year. The company said it is focused on delivering storage solutions for a significant range of existing, growing and emerging areas, and believe it has the right strategy and portfolio to deliver value to shareholders.

"While lower than planned nearline enterprise demand temporarily impacted our financial results, we are pleased with the momentum we have across our products, which will be further supported by the newly acquired assets of Dot Hill and our ability to now completely integrate the Samsung hard drive business. As we look forward, we are focused on delivering storage solutions for a significant range of existing, growing and emerging areas, and believe we have the right strategy and portfolio to deliver value to shareholders," said Steve Luczo, Seagate's chairman and chief executive officer.

Net income for the first-quarter dropped to $34 million or $0.11 per share from $381 million or $1.13 per share in the prior year.

Non-GAAP net income for the latest-quarter was $165 million or $0.54 per share. Analysts polled by Thomson Reuters expected the company to report earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenue declined to $2.925 billion from $3.785 billion in the prior year. Wall Street expected revenues of $2.92 billion.

As previously disclosed on October 21, 2015, the Board has approved a quarterly cash dividend of $0.63 per share, which will be payable on November 20, 2015 to shareholders of record as of the close of business on November 6, 2015. 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.