Seagate Technology Plc (STX) has reported 391.18 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $167 million, or $0.55 a share in the quarter, compared with $34 million, or $0.11 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $299 million, or $0.99 a share compared with $165 million or $0.54 a share, a year ago.
Revenue during the quarter dropped 4.38 percent to $2,797 million from $2,925 million in the previous year period. Gross margin for the quarter expanded 508 basis points over the previous year period to 28.64 percent. Total expenses were 92.10 percent of quarterly revenues, down from 97.06 percent for the same period last year. This has led to an improvement of 496 basis points in operating margin to 7.90 percent.
Operating income for the quarter was $221 million, compared with $86 million in the previous year period.
"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," said 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." For a detailed reconciliation of GAAP to non-GAAP results, see accompanying financial tables.
Operating cash flow drops significantlySeagate Technology Plc has generated cash of $592 million from operating activities during the quarter, down 28.16 percent or $ 232 million, when compared with the last year period. The company has spent $139 million cash to meet investing activities during the quarter as against cash outgo of $209 million in the last year period.
The company has spent $89 million cash to carry out financing activities during the quarter as against cash outgo of $1,178 million in the last year period.
Cash and cash equivalents stood at $1,489 million as on Sep. 30, 2016, down 22.25 percent or $426 million from $1,915 million on Oct. 02, 2015.
Working capital drops significantly
Seagate Technology Plc has witnessed a decline in the working capital over the last year. It stood at $1,320 million as at Sep. 30, 2016, down 39 percent or $844 million from $2,164 million on Oct. 02, 2015. Current ratio was at 1.51 as on Sep. 30, 2016, down from 1.80 on Oct. 02, 2015.
Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 23 days for the last year period. Days sales outstanding went down to 43 days for the quarter compared with 51 days for the same period last year.
Days inventory outstanding has decreased to 41 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding was almost stable at 70 days for the quarter, when compared with the previous year period.
Debt comes down marginallySeagate Technology Plc has recorded a decline in total debt over the last one year. It stood at $4,092 million as on Sep. 30, 2016, down 1.16 percent or $48 million from $4,140 million on Oct. 02, 2015. Seagate Technology Plc has recorded a decline in long-term debt over the last one year. It stood at $4,092 million as on Sep. 30, 2016, down 1.16 percent or $48 million from $4,140 million on Oct. 02, 2015. Total debt was 48.17 percent of total assets as on Sep. 30, 2016, compared with 45.60 percent on Oct. 02, 2015. Debt to equity ratio was at 2.69 as on Sep. 30, 2016, up from 2.15 as on Oct. 02, 2015. Interest coverage ratio improved to 4.42 for the quarter from 1.83 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
