Seagate Technology's performance in the first quarter of FY2024 indicated a significant decline, with the company reporting a 28.6% year-on-year revenue drop to $1.45 billion. The figure fell short of the predicted revenue of $1.49 billion, marking a challenging start to the fiscal year for the data storage solutions provider.
The company also reported a non-GAAP loss per share of $0.22, which was less than anticipated. Furthermore, Seagate's free cash flow experienced a substantial 66.1% quarter-on-quarter decrease to $57 million, while its GAAP gross margin contracted to 10.2%.
Looking ahead, Seagate's guidance for Q2 2024 revenue is set at a disappointing $1.55 billion, compared to the estimated $1.59 billion. This projection comes amidst an extended downcycle in the industry that has been impacting the company's financial performance.
In spite of these setbacks, Seagate continues to maintain financial discipline and is making progress on its Heat-Assisted Magnetic Recording (HAMR) product roadmap. This commitment is demonstrated by an Inventory Days Outstanding of 73 during this challenging period.
Despite the difficult quarter, Seagate still maintains a strong market presence with a market capitalization of $13.9 billion and trades at $67.45 per share. The company also holds a substantial cash reserve with $795 million in cash on hand, indicating its resilience in navigating through industry downturns.
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