Seagate Technology Holdings plc Q4 FY2021 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Seagate reported a strong finish to fiscal year 2021, with record June‑quarter performance driven by mass capacity demand, tighter supply conditions, and solid execution.
  • Q4 revenue exceeded $3 billion for the first time in six years, reaching $3.01 billion (up 10% sequentially and 20% year‑over‑year).
  • Non‑GAAP EPS was $2.00 (up 35% sequentially and 67% year‑over‑year).
  • Non‑GAAP gross margin expanded to 29.6%, approaching the long‑term target range (30%‑33%) earlier than expected.
  • Strong momentum across Nearline, VIA, and cloud markets positions the company for high single‑digit or better revenue growth in fiscal 2022.

Key Financial Highlights

  • Q4 revenue: $3.01 billion • Up 10% vs. Q3. • Up 20% vs. Q4 FY20.
  • Non‑GAAP operating margin: 18.1% • Up from 15.3% last quarter. • Up from 14.8% in Q4 FY20.
  • Non‑GAAP EPS: $2.00 • Highest since FY12. • Up from $1.48 in Q3 2021. • Up from $1.20 in Q4 FY20.
  • Free cash flow: $354 million • Up 29% sequentially and year‑over‑year.
  • Capex: $124 million in Q4; under $500 million for FY21 (4.7% of revenue). • Down ~15% vs. FY20 through improved manufacturing efficiencies.

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Operator: Good morning and welcome to the Seagate Technology’s fourth quarter and fiscal year 2021 financial results conference call. My name is Tabitha 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 only. At this time, I would like to turn the call over to Shanye Hudson, Senior Vice President, Investor Relations and Treasury. Please proceed, Shanye. Shanye Hudson: Thank you. Good afternoon 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’ve posted our earnings press release and detailed supplemental information for our June quarter and fiscal year 2021 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 included in our 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 items are out of our control and/or cannot be reasonably predicted, therefore a reconciliation to the corresponding GAAP measures is not available without unreasonable efforts. As a reminder, this call contain forward-looking statements, including our September quarter f

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