Seagate Technology Holdings plc Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Revenue reached $2.7 billion, up 5% sequentially and consistent with guidance.
  • Non-GAAP operating income increased 29% from the prior quarter, reaching $424 million.
  • Non-GAAP EPS rose to $1.35, up 31% sequentially and above guidance midpoint.
  • Free cash flow remained strong, bringing trailing 12-month free cash flow to nearly $1.2 billion.
  • Company achieved record exabyte shipments driven by mass capacity storage growth.

Business Segment Performance

Mass Capacity Storage
  • Revenue grew 9% sequentially and 25% year-over-year.
  • Accounts for 49% of total revenue, up from 47% in prior quarter and 39% a year ago.
  • Exabyte shipments into this segment rose 12% sequentially to 71 exabytes.
  • 16TB drives were the highest revenue product; shipments nearly tripled quarter-over-quarter.
  • Company shipped 1 million 16TB drives in the quarter and continues strong ramp.
  • 18TB drives on track to begin shipping in the first half of calendar 2020.
Video & Image Applications
  • Achieved record revenue in the quarter; double-digit growth in both revenue and exabytes.
  • Strength driven by surveillance demand and broader adoption of high-resolution imaging.
  • Long-term demand outlook remains positive despite pockets of global uncertainty.
Legacy Markets

Continue Reading

Unlock the full AI-powered summary with key highlights, financial performance, and analyst Q&A.

Upgrade to Professional
Operator: Good morning, and welcome to the Seagate Technology’s Fiscal Second Quarter 2020 Financial Results Conference Call. My name is Josh, and I'll be your coordinator for today. At this time, all participants are in a listen-only mode. Following the prepared remarks, there will be a question-and-answer session. As a reminder, this conference is being recorded for replay purposes. At this time, I'd like to turn the call over to Shanye Hudson, Vice President, Investor Relations. Please proceed, Shanye. Shanye Hudson: Thank you. Good morning, everyone, and welcome to today's call. Joining me are Dave Mosley, Seagate's Chief Executive Officer; and Gianluca Romano, our Chief Financial Officer. We posted our earnings press release and detailed supplemental information for our December 2019 quarter on the Investors section of our website. During today's call, we will refer to GAAP and non-GAAP measures. Non-GAAP figures are reconciled to GAAP figures in the earnings press release posted on our website and Form 8-K that was filed with the SEC. We've not reconciled certain non-GAAP outlook measures because material items that may impact these measures are out of our control and/or cannot be reasonably predicted. Therefore, reconciliation to the corresponding GAAP measures is not available without unreasonable efforts. As a reminder, this call contains forward-looking statements, including our March quarter financial outlook and expectations about our financial performance, market

Continue Reading

Unlock the full earnings call transcript with speaker labels and formatted dialogue.

Upgrade to Professional