Seagate Know-how Revises Fiscal First Quarter 2023 Outlook

FREMONT, Calif.–(Business WIRE)–Seagate Technological know-how Holdings plc (NASDAQ: STX) (the “Company” or “Seagate”), a earth leader in facts storage and infrastructure alternatives, right now declared that it is decreasing its company outlook for the fiscal first quarter ending September 30, 2022, towards a worsening macro-economic backdrop.

Seagate now expects fiscal to start with quarter profits of $2.1 billion as well as or minus $100 million, which compares to the Company’s prior advice assortment of $2.5 billion furthermore or minus $150 million.

“Because our earnings simply call in mid-July, weaker economic tendencies in certain Asian locations have amplified consumer inventory corrections and offer chain disruptions. We have also seen much more cautious purchasing behavior between worldwide Enterprise / OEM and specified U.S. cloud clients amid ongoing macro-economic uncertainties. These exterior variables are impacting close to-expression mass capacity demand while continuing to weigh on the purchaser centric legacy marketplaces,” said Dave Mosley, Seagate’s chief govt officer.

“As we work beneath these dynamic current market conditions, we continue on to get proactive measures to lessen the impacts to the company. We are additional decreasing our creation output, reducing costs, and moderating fiscal 2023 capital investments. The mix of reduced revenue, improved beneath-utilization prices and a lot less favorable product or service combine in the September quarter will outcome in a sequential drop in margins, with non-GAAP EPS now expected to be meaningfully down below our prior direction of at the very least $1.20.

We keep on to see reliable demand from customers for our 20+ terabyte product spouse and children and keep on being on-track for quantity and revenue crossover with the 18-terabyte system in the September quarter. The extensive-phrase demand drivers for mass potential storage stay intact and Seagate’s potent products roadmap and deep buyer associations make us well positioned to capture these significant future growth chances,” Mosley concluded.

Investor Event

Seagate’s main economical officer, Gianluca Romano will be presenting at the Deutsche Bank 2022 Technological innovation Meeting, which is scheduled to start off nowadays at 10:30 AM PT / 1:30 PM ET.

A are living audio webcast of the presentation can be accessed on the net at Seagate’s Trader Relations web-site at buyers.seagate.com. A replay of the webcast will be accessible for at minimum 30 days next the event.

Cautionary Observe With regards to Ahead-Seeking Statements

This press launch consists of forward-wanting statements in the this means of the Personal Securities Litigation Reform Act of 1995. Forward-searching statements provide present-day expectations of long run activities primarily based on specified assumptions and consist of any statement that does not instantly relate to any historic truth. Forward-wanting statements include things like, among the other things, statements about the Company’s options, packages, approaches and prospects, fiscal outlook for foreseeable future durations, including the fiscal initially quarter 2023, anticipations about the Company’s goods, our ability to ramp production, storage market traits and sector demand, shifts in know-how, the Company’s skill to meet current market and field expectations and the results of these foreseeable future developments, the doable consequences of the financial ailments worldwide resulting from the COVID-19 pandemic or other macro disruptions, like the probability or importance of continuing provide chain disruptions, and anticipations on the Company’s organization for the fiscal quarter ending September 30, 2022 and outside of. Ahead-seeking statements normally can be discovered by phrases these as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “should,” “may,” “will,” “will go on,” “can,” “could” or the damaging of these text, versions of these phrases and comparable terminology, in just about every situation, meant to refer to foreseeable future occasions or situation. On the other hand, the absence of these terms or comparable expressions does not signify that a statement is not forward-looking. Ahead-hunting statements are subject to different uncertainties and hazards that could lead to our genuine success to differ materially from historic expertise and our existing anticipations or projections. These threats and uncertainties incorporate, but are not restricted to, individuals explained underneath the captions “Risk Factors” and “Management’s Discussion and Examination of Fiscal Situation and Outcomes of Operations” in the Company’s Once-a-year Report on Type 10-K for the calendar year ended July 1, 2022. Undue reliance need to not be put on the forward-wanting statements in this press launch, which are dependent on details out there to the Organization on, and which discuss only as of, the day hereof. The Company undertakes no obligation to update forward-hunting statements to replicate activities or situations soon after the day they were being manufactured, unless of course required by applicable legislation.

The inclusion of Seagate’s website addresses in this push launch are presented for advantage only. The data contained in, or that can be accessed through, Seagate’s sites and social media channels are not section of this push launch.

Use of non-GAAP economic details

The Organization uses non-GAAP steps of gross income, gross margin, operating fees, cash flow from operations, running margin, net money, diluted EPS, and cost-free funds move, which are modified from effects based mostly on GAAP to exclude specified gains, fees, gains and losses. These non-GAAP monetary steps are presented to improve the user’s total comprehension of the Company’s existing economical performance and its prospective clients for the long term. Particularly, the Enterprise thinks non-GAAP final results supply practical details to each management and traders as these non-GAAP success exclude particular benefits, expenses, gains and losses that it believes are not indicative of its main functioning outcomes and for the reason that it is similar to the approach employed in connection with the fiscal versions and estimates published by economic analysts who observe the Company.

These non-GAAP success are some of the measurements administration makes use of to assess the Company’s performance, allocate methods and system for upcoming intervals. Noted non-GAAP effects should only be viewed as as supplemental to success geared up in accordance with GAAP, and not considered as a substitute or substitution for, or top-quality to, GAAP results. These non-GAAP actions may differ from the non-GAAP measures documented by other corporations in its industry.

Definitions of the Company’s non-GAAP fiscal measures are offered in the Company’s press launch asserting earnings for the fiscal fourth quarter of 2022 which is accessible on the Company’s web-site.

About Seagate

Seagate Technological innovation crafts the datasphere, helping to improve humanity’s prospective by innovating globe-class, precision-engineered mass-details storage and management remedies with a target on sustainable partnerships. A international technologies leader for far more than 40 a long time, the enterprise has delivered in excess of a few billion terabytes of details capacity. Understand far more about Seagate by checking out www.seagate.com or pursuing us on Twitter, Fb, LinkedIn, YouTube, and subscribing to our blog site.

© 2022 Seagate Technologies LLC. All legal rights reserved. Seagate, Seagate Technologies, and the Spiral brand are registered trademarks of Seagate Technology LLC in the United States and/or other international locations.