14 DAY TRIAL // It looks like Seagate decided this was the opportune moment for a small update on its financial situation, as well as for announcing a quarterly cash dividend set to be payable on June 1, 2011.
Each company has its own way of keeping track of its fiscal years and the financial development during each of the four quarters.
For Seagate, the most recent FY quarter (of Fiscal Year 2011) ended on April 1 and, while an exact analysis of its finances has not been made, the outfit knows enough to give estimates.
Apparently, the company expects its revenues for the recently concluded quarter to amount to the sum of $2.7 billion.
This will be enabled by unit shipments of 49 million hard drives, leading to a gross margin as percent of revenue near or a bit higher than what was expected originally (18-19%).
Inventory of 3.5-inch SATA units is said to be below the target range (4-6 weeks on hand) while cash, cash equivalents and short-term investments concluded at $2.5 billion. All in all, things aren't looking bad but neither are they especially good.
Besides reporting its finances, Seagate also announced a quarterly cash dividend set to be paid to shareholders on June 1, 2011.
It is of $0.18 per share and represents a yearly payout of $300 million, or $75 million on a quarterly basis.
“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.”