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Unedited press release follows:
Seagate Technology PLC Declares Quarterly Cash Dividend And Provides Update On Fiscal Third Quarter Results
SCOTTS VALLEY, Calif. – April 7, 2011 – Seagate Technology plc (“Seagate” or the “Company”) (NASDAQ:STX) today announced that its Board of Directors (the “Board”) has approved a quarterly cash dividend of $0.18 per share. The first dividend will be payable on June 1, 2011 to shareholders of record as of the close of business on May 2, 2011. This dividend represents a quarterly payout of approximately $75 million in aggregate, or $300 million on an annualized basis. 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.
“The establishment of a quarterly dividend reflects the strength of our balance sheet and the exceptional cash generation ability of our business, as well as the confidence that the Board and the management team have in the Company’s ability to generate free cash flow on a sustained basis,” said Steve Luczo, Seagate chairman, president and CEO. “We are taking this action as a part of Seagate’s ongoing commitment to a balanced capital deployment strategy to maximize shareholder value. We will continue to evaluate a wide range of strategic uses for cash going forward.”
Seagate expects to maintain a prudent cash balance that will enable the company to respond quickly to changes in market dynamics, take advantage of unexpected opportunities and provide flexibility for future investments in growth.
Fiscal Third Quarter 2011 Preliminary Financial Results
For the fiscal third quarter which ended April 1, 2011, Seagate management expects to report revenue of approximately $2.7 billion, unit shipments of 49 million and gross margin as a percent of revenue near or slightly above the high-end of the original outlook range of 18-19%. Cash, cash equivalents and short-term investments at the end of the fiscal third quarter totaled approximately $2.5 billion. Inventory in the distribution channel of Seagate 3.5” SATA hard disk drives is below the targeted range of 4 – 6 weeks on hand.
The preliminary results for the fiscal third quarter do not include the impact of any potential new restructuring activities, future mergers, acquisitions, financing, dispositions or other business combinations the company may undertake.
Seagate is the worldwide leader in hard disk drives and storage solutions. Learn more at Seagate.com.