Seagate Technology Holdings plc reported significant financial performance improvements in its latest 10-Q filing for the quarter ending December 27, 2024. The company generated revenue of $2.325 billion, a 49% increase from $1.555 billion in the same quarter of the previous year. For the first half of the fiscal year, revenue reached $4.493 billion, up from $3.009 billion, reflecting a strong demand for high-capacity hard disk drives (HDDs) primarily from cloud and enterprise customers. The gross margin for the quarter was 34.9%, an increase from 23% in the prior year, driven by favorable product mix and pricing actions.
In terms of profitability, Seagate reported a net income of $336 million for the December 2024 quarter, compared to a net loss of $19 million in the same quarter of 2023. For the six months ended December 27, 2024, the net income was $641 million, a significant turnaround from a loss of $203 million in the prior year. The company attributed these improvements to increased shipments of mass capacity HDDs and effective cost management strategies.
Operationally, Seagate shipped 151 exabytes of HDD storage capacity during the December quarter, with a notable increase in mass capacity shipments. The company also reported a rise in its customer base, particularly in the cloud and enterprise sectors. However, it noted temporary supply constraints that could impact its ability to meet customer demand in the upcoming quarter. The company continues to focus on enhancing operational efficiency and increasing production levels to address this demand.
Seagate's balance sheet showed total assets of $7.959 billion as of December 27, 2024, up from $7.739 billion at the end of the previous fiscal period. The company’s cash and cash equivalents decreased to $1.238 billion from $1.358 billion, primarily due to dividend payments and capital expenditures. The company declared a quarterly cash dividend of $0.72 per share, reflecting its commitment to returning value to shareholders while managing its liquidity effectively.
Looking ahead, Seagate anticipates continued growth in its HDD business, driven by increasing data demand, including potential demand from the adoption of Generative AI applications. The company remains cautious about macroeconomic conditions and customer inventory adjustments but is optimistic about its operational strategies and market positioning.
About Seagate Technology Holdings plc
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