Seagate Technology plc (STX) has reported 80 percent jump in profit for the quarter ended Dec. 30, 2016. The company has earned $297 million, or $1 a share in the quarter, compared with $165 million, or $0.55 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $412 million, or $1.38 a share compared with $246 million or $0.82 a share, a year ago. Revenue during the quarter dropped 3.08 percent to $2,894 million from $2,986 million in the previous year period. Gross margin for the quarter expanded 597 basis points over the previous year period to 30.79 percent. Total expenses were 87.21 percent of quarterly revenues, down from 92.33 percent for the same period last year. This has led to an improvement of 512 basis points in operating margin to 12.79 percent.
Operating income for the quarter was $370 million, compared with $229 million in the previous year period.
“The Company’s product execution, operational performance, and financial results improved every quarter throughout 2016. In the December quarter we achieved near record results in gross margin, cash flow, and profitability. Seagate’s employees are to be congratulated for their incredible effort,” said Steve Luczo, Seagate’s chairman and chief executive officer. “Looking ahead, we are optimistic about the long-term opportunities for Seagate’s business as enterprises and consumers embrace and benefit from the shift of storage to cloud and mobile applications. Seagate is well positioned to work with the leaders in this digital transformation with a broad market-leading storage solution portfolio.”
Operating cash flow improves marginally
Seagate Technology plc has generated cash of $1,247 million from operating activities during the first half, up 3.40 percent or $41 million, when compared with the last year period. The company has spent $234 million cash to meet investing activities during the first six months as against cash outgo of $980 million in the last year period.
The company has spent $413 million cash to carry out financing activities during the first six months as against cash outgo of $1,444 million in the last year period.
Cash and cash equivalents stood at $1,716 million as on Dec. 30, 2016, up 36.41 percent or $458 million from $1,258 million on Jan. 01, 2016.
Working capital increases marginally
Seagate Technology plc has recorded an increase in the working capital over the last year. It stood at $1,459 million as at Dec. 30, 2016, up 4.81 percent or $67 million from $1,392 million on Jan. 01, 2016. Current ratio was at 1.54 as on Dec. 30, 2016, down from 1.55 on Jan. 01, 2016.
Cash conversion cycle (CCC) was almost stable at 14 days for the quarter, when compared with the last year period. Days sales outstanding went down to 43 days for the quarter compared with 44 days for the same period last year.
Days inventory outstanding has decreased to 23 days for the quarter compared with 43 days for the previous year period. At the same time, days payable outstanding went up to 80 days for the quarter from 74 for the same period last year.
Debt comes down marginally
Seagate Technology plc has recorded a decline in total debt over the last one year. It stood at $4,093 million as on Dec. 30, 2016, down 1.14 percent or $47 million from $4,140 million on Jan. 01, 2016. Seagate Technology Plc has recorded a decline in long-term debt over the last one year. It stood at $4,093 million as on Dec. 30, 2016, down 1.14 percent or $47 million from $4,140 million on Jan. 01, 2016. Total debt was 47.81 percent of total assets as on Dec. 30, 2016, compared with 47.07 percent on Jan. 01, 2016. Debt to equity ratio was at 2.69 as on Dec. 30, 2016, up from 2.27 as on Jan. 01, 2016. Interest coverage ratio improved to 7.40 for the quarter from 4.77 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
