Hosting
Analyst Day Tomorrow in New York City
Q1 FY2020
non-GAAP diluted earnings per share (EPS) Outlook Updated to
Reflect Change in Useful Life for Capital Equipment
Seagate Technology plc (NASDAQ: STX) will host a financial
analyst meeting in New York City tomorrow, Thursday, September 19,
2019 starting at 9:00 a.m. Eastern time, which will be available to
the public via a live video webcast.
At the meeting, members of Seagate’s executive team will discuss
the significant and growing storage total addressable market and
how the Company is well positioned to capture growth opportunities
over the coming years. As part of its presentation, Seagate will
provide information on its target long-term financial model.
“As a storage industry leader, Seagate is well positioned to
capitalize on growth opportunities driven by the insatiable demand
for data and we look forward to sharing our future outlook with the
investment community,” said Dave Mosley, Seagate’s chief executive
officer. “We are paving the way on data storage innovation,
including increasing areal density and scaling performance with
capacity to deliver lower total cost of ownership for our
customers. Our expertise in manufacturing, technology and systems
architecture have resulted in a comprehensive product platform
capable of addressing both current and future storage demands. We
remain confident that we will be able to sustainably invest in the
business and drive long-term value for our shareholders.”
Business Outlook
The Company is also updating its fiscal first quarter of 2020
non-GAAP diluted EPS guidance that it previously issued on August
2, 2019. Management now expects non-GAAP diluted EPS in the range
of $0.99 plus or minus 5%, which is up from $0.90 plus or minus 5%.
This update solely reflects the impact of a change in the estimated
useful lives of Seagate’s capital equipment, primarily associated
with the manufacturing of the Company’s products, from a range of
three to five years to a range of three to seven years. The
estimated impact of this change reduces depreciation expense by
approximately $25 million, or $0.09 per diluted share, in our first
fiscal quarter.
Our outlook for the first fiscal quarter is based on our current
assumptions and expectations; actual results may differ materially,
as a result of, among other things, the important factors discussed
in the Cautionary Note Regarding Forward-Looking Statements section
of this release.
The updated guidance regarding non-GAAP diluted EPS excludes
known charges primarily related to losses recognized on the early
redemption and repurchase of debt, estimated share-based
compensation expenses and amortization of acquired intangible
assets of approximately $0.26 per diluted share, $0.10 per diluted
share of which is related to estimated share-based compensation
expenses. Management reiterated its fiscal first quarter of 2020
revenue outlook of $2.55 billion plus or minus 5%.
We have not reconciled our non-GAAP diluted EPS to the most
directly comparable GAAP measure because material items that may
impact these measures are out of our control and/or cannot be
reasonably predicted including, but not limited to, accelerated
depreciation, impairment, and other charges related to cost saving
efforts, restructuring charges, strategic investment losses or
impairment recognized, income tax adjustments on these measures,
and other charges or benefits that may arise. The amounts of these
measures are not currently available, but may be material to future
results. A reconciliation of the non-GAAP diluted EPS to the
corresponding GAAP measures is not available without unreasonable
effort.
Analyst Day Webcast
Seagate will host its analyst day on Thursday, September 19,
2019 at the Lotte New York Palace Hotel in New York City.
Presentations by members of Seagate’s executive team will begin at
9:00 a.m. Eastern time and conclude at approximately 12:30 p.m.
Eastern time.
A live video webcast will be accessible from Seagate's Investor
Relations website at investors.seagate.com. Following the event, a
replay will be made available at the same location and archived for
approximately one year.
About Seagate
Seagate creates space for the human experience by innovating how
data is stored, shared and used. Learn more at
investors.seagate.com.
Seagate and Seagate Technology are registered trademarks of
Seagate Technology LLC.
Cautionary Note Regarding
Forward-Looking Statements
This document contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, each as amended,
including, in particular, statements about the Company’s updating
of its fiscal first quarter of 2020 non-GAAP diluted EPS guidance.
These statements identify prospective information and may include
words such as “expects,” “intends,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “projects,” “should,” “may,”
“will,” or the negative of these words, variations of these words
and comparable terminology. These forward-looking statements are
based on information available to the Company as of the date of
this document and are based on management’s current views and
assumptions. These forward-looking statements are conditioned upon
and also involve a number of known and unknown risks,
uncertainties, and other factors that could cause actual results,
performance or events to differ materially from those anticipated
by these forward-looking statements. Such risks, uncertainties, and
other factors may be beyond the Company’s control and may pose a
risk to the Company’s operating and financial condition. Such risks
and uncertainties include, but are not limited to: changes in
market demand and the effects of the highly competitive markets in
which we compete; changes in technology; market acceptance of new
products; consolidation trends in the data storage industry; the
Company’s ability to successfully qualify, manufacture and sell its
storage products in increasing volumes on a cost-effective basis
and with acceptable quality; the Company’s ability to generate
sufficient cash flows from operations and investments in order to
meet our liquidity requirements; the impact of trade barriers, such
as import/export duties and restrictions, tariffs and quotas,
imposed by the U.S. or other countries in which the Company
conducts business; and the evolving legal, regulatory, and
administrative climate in the international markets where the
Company operates, including changes in regulations relating to
privacy and protection of data and environmental matters.
Information concerning risks, uncertainties and other factors that
could cause results to differ materially from the expectations
described in this document is contained in the Company’s Annual
Report on Form 10-K filed with the U.S. Securities and Exchange
Commission (“SEC”) on August 2, 2019, the “Risk Factors” section of
which is incorporated into this document by reference, and other
documents filed with or furnished to the SEC. These forward-looking
statements should not be relied upon as representing the Company’s
views as of any subsequent date and the Company undertakes no
obligation to update forward-looking statements to reflect events
or circumstances after the date they were made, except as required
by applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190918005255/en/
Media Contact: Gregory Belloni, (408) 658-1018
gregory.belloni@seagate.com
Investor Relations Contact: Shanye Hudson, (408) 658-1863
shanye.hudson@seagate.com
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