Seagate reports $US3.3 billion revenue in Q4

Seagate reports $US3.3 billion revenue in Q4

Storage vendor sees earnings rise off the back of Cloud and flash.

Storage vendor, Seagate, generated revenue of about $US3.3 billion for the fourth quarter, with a gross margin of 28.0 per cent.

$US13.7 billion of revenue was reported for the fiscal year ended June 27, 2014, with a gross margin of 28.0 per cent.

Seagate chairman and chief executive officer, Steve Luczo, said the financials were the result of strategic investments in the storage vendor’s technology portfolio, resulting in “higher capacity and power efficient” products.

“Throughout fiscal year 2014, Seagate delivered strong financial and operational performance and returned significant value to shareholders,” he said.

Luczo added the company also expanded its capabilities to target a broader storage customer base in the future through the Cloud and flash technology for connected storage.

When excluding the net impact of certain items on a non-GAAP (generally accepted accounting principles) basis, the final quarter generated a gross margin of 28.5 per cent, net income of $US370 million, and diluted earnings per share of $US1.10.

The fiscal year had a gross margin of 28.5 per cent on a non-GAAP basis, as well as a net income of $US1.8 billion and diluted earnings per share of $US5.04.

The changing landscape

Luczo said disruptions in the traditional storage industry through the shifting IT market dynamics are in meaningful ways are creating opportunities for Seagate.

“We remain focused on investing in our storage technology product portfolio to deliver high quality storage products and solutions for our customers, as well as continuing to create long-term value for our shareholders,” he said.

Seagate’s operating cash flow during the quarter was approximately $US577 million, and shareholders received $US166 million in the form of dividends and share redemptions.

Patrick Budmar covers consumer and enterprise technology breaking news for IDG Communications. Follow Patrick on Twitter at @patrick_budmar.

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