Note from editor:
At a time when many disk array vendors are seeing their sales threatened due to a move to putting storage on the cloud, it is interesting to see Seagate faring so well. Interesting but perhaps not surprising. IT managers might be changing the way they purchase and consume storage but that does not mean they are consuming any less. We know that data and hence storage growth continues, and whilst many are choosing to push storage to the cloud, the basic premise remains the same, if we need more storage we need more disk. Seagates results suggest that for them it's simply a case of where the data will reside. Whether its on premise or on cloud, disk will be needed and they are seeing demand rise accordingly.

Press release follows:

Seagate Technology reported financial results for the second quarter of fiscal year 2017 ended December 30, 2016. For the second quarter, the Company reported revenue of $2.9 billion, gross margin of 30.8 percent, net income of $297 million and diluted earnings per share of $1.00. On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported gross margin of 31.8 percent, net income of $412 million and diluted earnings per share of $1.38.

During the second quarter, the Company produced $656 million in cash flow from operations, paid cash dividends of $188 million, and repurchased 4.1 million ordinary shares for $147 million. Cash, cash equivalents, and short-term investments totalled approximately $1.7 billion at the end of the quarter. There were 295 million ordinary shares issued and outstanding as of the end of the quarter.

According to Steve Luczo, Seagate’s Chairman and CEO, “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. 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.”

Quarterly Cash Dividend

The Board of Directors of the Company (the “Board”) has approved a quarterly cash dividend of $0.63 per share, which will be payable on April 5, 2017 to shareholders of record as of the close of business on March 22, 2017. 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.