- Revenue of $1.86 billion
- GAAP (loss) per share of $(2.09); non-GAAP (loss) per share of
$(0.28)
- Cash flow from operations of $228 million and free cash flow of
$174 million
- Declared cash dividend of $0.70 per share
Seagate Technology Holdings plc (NASDAQ: STX) (the “Company” or
“Seagate”) today reported financial results for its fiscal third
quarter ended March 31, 2023.
“We are seeing a more elongated customer inventory correction
that led to weaker than expected nearline demand among a few large
customers late in the quarter. Consequently, our March quarter
revenue came in at the low-end of our guidance range, which along
with underutilization charges and other factors had a severe impact
on our reported margins and profitability,” said Dave Mosley,
Seagate’s chief executive officer.
“Looking ahead, we now expect demand recovery to begin towards
the end of the calendar year. In response to this dynamic
environment, we are taking aggressive actions to lower our cost
structure while still positioning Seagate to thrive over the
long-term and sustain our technology leadership. To that end, we
continue to execute on our product roadmap, including our
strategically vital HAMR platform that we launched in April, as
anticipated.”
Quarterly Financial Results
GAAP
Non-GAAP
FQ3 2023
FQ3 2022
FQ3 2023
FQ3 2022
Revenue ($M)
$
1,860
$
2,802
$
1,860
$
2,802
Gross Margin
17.2
%
28.8
%
18.7
%
29.2
%
Operating Margin
(16.9
)%
15.3
%
3.5
%
16.8
%
Net (Loss) Income ($M)
$
(433
)
$
346
$
(58
)
$
401
Diluted (Loss) Earnings Per Share
$
(2.09
)
$
1.56
$
(0.28
)
$
1.81
GAAP operating expenses for the fiscal third quarter included a
$300 million settlement penalty for alleged violations of U.S.
Export Administration Regulations by the U.S. Department of
Commerce's Bureau of Industry and Security (“BIS”), that were
subsequently resolved by a settlement agreement on April 18, 2023.
Quarterly payments of $15 million will be made over the course of 5
years, starting in fiscal second quarter 2024.
During the fiscal third quarter the Company generated $228
million in cash flow from operations and $174 million in free cash
flow, and paid cash dividends of $145 million. Cash and cash
equivalents totaled $766 million. There were 207 million ordinary
shares issued and outstanding as of the end of the quarter.
Seagate has issued a Supplemental Financial Information
document, which is available on Seagate’s Investor Relations
website at investors.seagate.com.
Quarterly Cash Dividend
The Board of Directors of the Company (the “Board”) declared a
quarterly cash dividend of $0.70 per share, which will be payable
on July 5, 2023 to shareholders of record as of the close of
business on June 21, 2023. 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.
Restructuring Plan
On April 20, 2023, the Company committed to a restructuring plan
(the “Plan”) to reduce its cost structure in response to changes in
macroeconomic and business conditions. The Plan is intended to
align the Company’s operational needs with the near-term demand
environment while continuing to support the long-term business
strategy. The Plan, which the Company expects to be substantially
completed by the end of the fiscal fourth quarter 2023, is expected
to result in total pre-tax charges of approximately $150 million.
The charges are expected to be primarily cash-based and consist of
employee severance and other one-time termination benefits. The
Company expects to realize run-rate savings of approximately $200
million on an annualized basis starting in the fiscal first quarter
2024.
Business Outlook
The business outlook for the fiscal fourth quarter 2023 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 Company is providing the following guidance for its fiscal
fourth quarter 2023:
- Revenue of $1.7 billion, plus or minus $150 million
- Non-GAAP (loss) per share of $(0.20), plus or minus $0.20
Guidance regarding non-GAAP diluted EPS excludes known pre-tax
charges related to estimated share-based compensation expenses of
$0.16 per share and restructuring costs of approximately $0.72 per
share.
We have not reconciled our non-GAAP diluted EPS guidance for
fiscal fourth quarter 2023 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, net (gain)
recognized from early redemption of debt and debt modification
costs, pandemic-related lockdown charges, purchase order
cancellation fees, strategic investment losses (gains) or
impairment charges, 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 guidance for
fiscal fourth quarter 2023 to the corresponding GAAP measures is
not available without unreasonable effort. A reconciliation of our
historical non-GAAP financial measures to their nearest GAAP
equivalent is contained in this release.
Investor Communications
Seagate management will hold a public webcast today at 6:00 AM
PT / 9:00 AM ET that can be accessed on its Investor Relations
website at investors.seagate.com.
An archived audio webcast of this event will be available on
Seagate’s Investor Relations website at investors.seagate.com
shortly following the event conclusion.
About Seagate
Seagate Technology crafts the datasphere, helping to maximize
humanity’s potential by innovating world-class,
precision-engineered data storage and management solutions with a
focus on sustainable partnerships. A global technology leader for
more than 40 years, the company has shipped over four billion
terabytes of data capacity. Learn more about Seagate by visiting
www.seagate.com or following us on Twitter, Facebook, LinkedIn,
YouTube, and subscribing to our blog.
© 2023 Seagate Technology LLC. All rights reserved. Seagate,
Seagate Technology, and the Spiral logo are registered trademarks
of Seagate Technology LLC in the United States and/or other
countries.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements provide current expectations of
future events based on certain assumptions and include any
statement that does not directly relate to any historical fact.
Forward-looking statements include, among other things, statements
about the Company’s plans, programs, strategies and prospects;
financial outlook for future periods, including the fiscal fourth
quarter 2023; expectations regarding our ability to service debt
and continue to generate free cash flow; expectations regarding our
ability to make timely quarterly payments under the settlement
agreement with BIS; expectations regarding logistical,
macroeconomic, or other factors affecting the Company; expectations
regarding our ability to execute on our cost saving plans as
currently contemplated; changes to the assumptions on which the
projected cost saving initiatives are based; expectations regarding
market demand for Company’s products and our ability to optimize
our level of production and meet market and industry expectations
and the effects of these future trends on Company’s performance;
anticipated shifts in technology and storage industry trends, and
anticipated demand and performance of new storage product
introductions, including HAMR-based products; and expectations on
the Company’s business strategy and performance, as well as
dividend issuance plans for the fiscal quarter ending June 30, 2023
and beyond. Forward-looking statements generally can be identified
by words such as “expects,” “intends,” “plans,” “anticipates,”
“believes,” “estimates,” “predicts,” “projects,” “should,” “may,”
“will,” “will continue,” “can,” “could” or the negative of these
words, variations of these words and comparable terminology, in
each case, intended to refer to future events or circumstances.
However, the absence of these words or similar expressions does not
mean that a statement is not forward-looking. Forward-looking
statements are subject to various uncertainties and risks that
could cause our actual results to differ materially from historical
experience and our present expectations or projections. These risks
and uncertainties include, but are not limited to, those described
under the captions “Risk Factors” and “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” in the
Company’s latest periodic report on Form 10-Q or Form 10-K filed
with the U.S. Securities and Exchange Commission. Undue reliance
should not be placed on the forward-looking statements in this
press release, which are based on information available to us on,
and which speak only as of, the date hereof. The Company undertakes
no obligation to update forward-looking statements to reflect
events or circumstances after the date they were made, unless
required by applicable law.
The inclusion of Seagate’s website addresses in this press
release are provided for convenience only. The information
contained in, or that can be accessed through, Seagate’s websites
and social media channels are not part of this press release.
SEAGATE TECHNOLOGY HOLDINGS
PLC
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In millions)
March 31, 2023
July 1, 2022
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
766
$
615
Accounts receivable, net
994
1,532
Inventories
1,200
1,565
Other current assets
637
321
Total current assets
3,597
4,033
Property, equipment and leasehold
improvements, net
1,753
2,239
Goodwill
1,237
1,237
Other intangible assets, net
1
9
Deferred income taxes
1,127
1,132
Other assets, net
252
294
Total Assets
$
7,967
$
8,944
LIABILITIES AND (DEFICIT)
EQUITY
Current liabilities:
Accounts payable
$
1,697
$
2,058
Accrued employee compensation
84
252
Accrued warranty
73
65
Current portion of long-term debt
1,118
584
Accrued expenses
667
596
Total current liabilities
3,639
3,555
Long-term accrued warranty
88
83
Other non-current liabilities
404
135
Long-term debt, less current portion
4,840
5,062
Total Liabilities
8,971
8,835
Total Shareholders' (Deficit) Equity
(1,004
)
109
Total Liabilities and Shareholders’
(Deficit) Equity
$
7,967
$
8,944
SEAGATE TECHNOLOGY HOLDINGS
PLC
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(In millions, except per share
data)
(Unaudited)
For the Three Months
Ended
For the Nine Months
Ended
March 31, 2023
April 1, 2022
March 31, 2023
April 1, 2022
Revenue
$
1,860
$
2,802
$
5,782
$
9,033
Cost of revenue
1,541
1,996
4,735
6,323
Product development
191
233
625
694
Marketing and administrative
123
141
377
410
Amortization of intangibles
—
3
3
9
BIS settlement penalty
300
—
300
—
Restructuring and other, net
20
—
110
2
Total operating expenses
2,175
2,373
6,150
7,438
(Loss) income from operations
(315
)
429
(368
)
1,595
Interest income
2
—
4
1
Interest expense
(81
)
(63
)
(229
)
(184
)
Net gain recognized from early redemption
of debt
3
—
207
—
Other, net
(9
)
(15
)
(25
)
(14
)
Other expense, net
(85
)
(78
)
(43
)
(197
)
(Loss) income before income taxes
(400
)
351
(411
)
1,398
Provision for income taxes
33
5
26
25
Net (loss) income
$
(433
)
$
346
$
(437
)
$
1,373
Net (loss) income per share:
Basic
$
(2.09
)
$
1.59
$
(2.11
)
$
6.18
Diluted
$
(2.09
)
$
1.56
$
(2.11
)
$
6.08
Number of shares used in per share
calculations:
Basic
207
218
207
222
Diluted
207
222
207
226
Cash dividends declared per ordinary
share
$
0.70
$
0.70
$
2.10
$
2.07
SEAGATE TECHNOLOGY HOLDINGS
PLC
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
For the Nine Months
Ended
March 31, 2023
April 1, 2022
OPERATING ACTIVITIES
Net (loss) income
$
(437
)
$
1,373
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization
409
324
Share-based compensation
93
106
Deferred income taxes
4
2
Net gain on redemption and repurchase of
debt
(207
)
—
Other non-cash operating activities,
net
15
46
Changes in operating assets and
liabilities:
Accounts receivable, net
538
(186
)
Inventories
365
(275
)
Accounts payable
(327
)
209
Accrued employee compensation
(168
)
(88
)
Accrued expenses, income taxes and
warranty
69
19
Other assets and liabilities
370
(53
)
Net cash provided by operating
activities
724
1,477
INVESTING ACTIVITIES
Acquisition of property, equipment and
leasehold improvements
(266
)
(309
)
Proceeds from the sale of assets
15
—
Purchases of investments
(1
)
(18
)
Proceeds from sale of investments
—
34
Net cash used in investing activities
(252
)
(293
)
FINANCING ACTIVITIES
Redemption and repurchase of debt
(71
)
(701
)
Dividends to shareholders
(437
)
(458
)
Repurchases of ordinary shares
(408
)
(1,313
)
Taxes paid related to net share settlement
of equity awards
(41
)
(45
)
Proceeds from issuance of long-term
debt
600
1,200
Proceeds from issuance of ordinary shares
under employee stock plans
59
68
Other financing activities, net
(23
)
(6
)
Net cash used in financing activities
(321
)
(1,255
)
Increase in cash, cash equivalents and
restricted cash
151
(71
)
Cash, cash equivalents and restricted cash
at the beginning of the period
617
1,211
Cash, cash equivalents and restricted cash
at the end of the period
$
768
$
1,140
Use of non-GAAP financial information
The Company uses non-GAAP measures of gross profit, gross
margin, operating expenses, income from operations, operating
margin, net income, diluted EPS, free cash flow, EBITDA, adjusted
EBITDA and last twelve months adjusted EBITDA, which are adjusted
from results based on GAAP to exclude certain benefits, expenses,
gains and losses. These non-GAAP financial measures are provided to
enhance the user’s overall understanding of the Company’s current
financial performance and its prospects for the future.
Specifically, the Company believes non-GAAP results provide useful
information to both management and investors as these non-GAAP
results exclude certain benefits, expenses, gains and losses that
it believes are not indicative of its core operating results and
because it is similar to the approach used in connection with the
financial models and estimates published by financial analysts who
follow the Company.
These non-GAAP results are some of the measurements management
uses to assess the Company’s performance, allocate resources and
plan for future periods. Reported non-GAAP results should only be
considered as supplemental to results prepared in accordance with
GAAP, and not considered as a substitute or replacement for, or
superior to, GAAP results. These non-GAAP measures may differ from
the non-GAAP measures reported by other companies in its
industry.
SEAGATE TECHNOLOGY HOLDINGS
PLC
RECONCILIATIONS OF GAAP TO
NON-GAAP MEASURES
(In millions, except per share
amounts, gross margin and operating margin)
(Unaudited)
For the Three Months
Ended
For the Nine Months
Ended
March 31, 2023
April 1, 2022
March 31, 2023
April 1, 2022
GAAP Gross Profit
$
319
$
806
$
1,047
$
2,710
Accelerated depreciation, impairment and
other charges related to cost saving efforts
18
1
57
1
Amortization of acquired intangible
assets
1
1
3
3
Pandemic-related lockdown charges
—
—
7
—
Purchase order cancellation fees
—
—
108
—
Share-based compensation
8
9
24
27
Other charges
1
—
2
—
Non-GAAP Gross Profit
$
347
$
817
$
1,248
$
2,741
GAAP Gross Margin
17.2
%
28.8
%
18.1
%
30.0
%
Non-GAAP Gross Margin
18.7
%
29.2
%
21.6
%
30.3
%
GAAP Operating Expenses
$
634
$
377
$
1,415
$
1,115
Accelerated depreciation, impairment and
other charges related to cost saving efforts
(3
)
—
(25
)
—
Amortization of acquired intangible
assets
—
(3
)
(3
)
(9
)
BIS settlement penalty
(300
)
—
(300
)
—
Restructuring and other, net
(20
)
—
(110
)
(2
)
Share-based compensation
(23
)
(27
)
(69
)
(79
)
Other charges
(6
)
(2
)
(18
)
(4
)
Non-GAAP Operating Expenses
$
282
$
345
$
890
$
1,021
GAAP (Loss) Income From
Operations
$
(315
)
$
429
$
(368
)
$
1,595
Accelerated depreciation, impairment and
other charges related to cost saving efforts
21
1
82
1
Amortization of acquired intangible
assets
1
4
6
12
BIS settlement penalty
300
—
300
—
Pandemic-related lockdown charges
—
—
7
—
Purchase order cancellation fees
—
—
108
—
Restructuring and other, net
20
—
110
2
Share-based compensation
31
36
93
106
Other charges
7
2
20
4
Non-GAAP Income From Operations
$
65
$
472
$
358
$
1,720
GAAP Operating Margin
(16.9
)%
15.3
%
(6.4
)%
17.7
%
Non-GAAP Operating Margin
3.5
%
16.8
%
6.2
%
19.0
%
GAAP Net (Loss) Income
$
(433
)
$
346
$
(437
)
$
1,373
Accelerated depreciation, impairment and
other charges related to cost saving efforts
21
1
82
1
Amortization of acquired intangible
assets
1
4
6
12
BIS settlement penalty
300
—
300
—
Net (gain) recognized from early
redemption of debt and debt modification costs
(3
)
—
(207
)
1
Pandemic-related lockdown charges
—
—
7
—
Purchase order cancellation fees
—
—
108
—
Restructuring and other, net
20
—
110
2
Share-based compensation
31
36
93
106
Strategic investment losses or impairment
charges
1
13
1
6
Other charges
7
2
20
4
Income tax adjustments
(3
)
(1
)
(6
)
(17
)
Non-GAAP Net (Loss) Income
$
(58
)
$
401
$
77
$
1,488
GAAP Diluted Net (Loss) Income Per
Share
$
(2.09
)
$
1.56
$
(2.11
)
$
6.08
Accelerated depreciation, impairment and
other charges related to cost saving efforts
0.10
—
0.39
—
Amortization of acquired intangible
assets
—
0.02
0.03
0.05
BIS settlement penalty
1.45
—
1.45
—
Net (gain) recognized from early
redemption of debt and debt modification costs
(0.01
)
—
(0.99
)
—
Pandemic-related lockdown charges
—
—
0.03
—
Purchase order cancellation fees
—
—
0.52
—
Restructuring and other, net
0.10
—
0.53
0.01
Share-based compensation
0.15
0.16
0.45
0.47
Strategic investment losses or impairment
charges
—
0.06
—
0.03
Other charges
0.03
0.01
0.10
0.02
Income tax adjustments
(0.01
)
—
(0.03
)
(0.08
)
Non-GAAP Diluted Net (Loss) Income Per
Share1
$
(0.28
)
$
1.81
$
0.37
$
6.58
Shares used in diluted net (loss) income
per share calculation
GAAP
207
222
207
226
Non-GAAP
207
222
209
226
GAAP Net Cash Provided by Operating
Activities
$
228
$
460
$
724
$
1,477
Acquisition of property, equipment and
leasehold improvements
54
97
266
309
Free Cash Flow
$
174
$
363
$
458
$
1,168
1 For the three months ended March 31, 2023, GAAP and non-GAAP
diluted net loss per share were computed using weighted average
basic shares of 207 million, as a result of the net loss reported
during the period. For the nine months ended March 31, 2023, GAAP
diluted net loss per share was computed using weighted average
basic shares of 207 million, as a result of the net loss reported
during the period.
For the Three Months
Ended
March 31, 2023
December 30, 2022
September 30, 2022
July 1, 2022
Last Twelve Months
GAAP Net (Loss) Income
$
(433
)
$
(33
)
$
29
$
276
$
(161
)
Depreciation and amortization
126
148
135
127
536
Interest expense
81
77
71
65
294
Interest income
(2
)
(1
)
(1
)
(1
)
(5
)
Income tax expense (benefit)
33
(5
)
(2
)
5
31
Non-GAAP EBITDA
(195
)
186
232
472
695
BIS settlement penalty
300
—
—
—
300
Impairment and other charges related to
cost saving efforts
—
—
—
1
1
Net (gain) recognized from early
redemption of debt and debt modification costs
(3
)
(204
)
—
—
(207
)
Pandemic-related lockdown charges
—
—
6
—
6
Purchase order cancellation fees
—
108
—
—
108
Restructuring and other, net
20
81
9
1
111
Share-based compensation
31
33
29
39
132
Strategic investment losses or impairment
charges
1
—
—
6
7
Underutilization charges, net of
depreciation and amortization
60
45
37
—
142
Other charges
7
7
6
6
26
Non-GAAP Adjusted EBITDA
$
221
$
256
$
319
$
525
$
1,321
The Company’s Non-GAAP measures are adjusted for the
following items:
Accelerated depreciation, impairment and other charges
related to cost saving efforts
These expenses are excluded in the non-GAAP measures due to the
inconsistency in amount and frequency and are excluded to
facilitate a more meaningful evaluation of the Company’s current
operating performance and comparison to its past periods’ operating
performance.
Amortization of acquired intangible assets
The Company records expense from amortization of intangible
assets that were acquired in connection with its business
combinations over their estimated useful lives. Such charges are
inconsistent in size and are significantly impacted by the timing
and magnitude of the Company’s acquisitions. Consequently, these
expenses are excluded in the non-GAAP measures to facilitate a more
meaningful evaluation of its current operating performance and
comparison to its past periods’ operating performance.
BIS settlement penalty
The Company accrued a settlement penalty of $300 million for the
fiscal third quarter of 2023 related to the alleged violations of
the U.S. Export Administration Regulations between August 17, 2020
and September 29, 2021 by the BIS, which were subsequently resolved
by a settlement agreement on April 18, 2023. This settlement
penalty is excluded from the non-GAAP measures to facilitate a more
meaningful evaluation of the Company's current operating
performance and comparison to its past periods' operating
performance.
Net (gain) recognized from early redemption of debt and debt
modification costs
From time to time, the Company incurs gains, losses and fees
from the early redemption and repurchase of certain long-term debt
instruments. The gains and losses represent the difference between
the reacquisition price and the par value of the debt extinguished
less the write-off of any unamortized debt issuance costs and
discount. Fees include certain costs associated with a debt
extinguishment or modification. The amount of these charges may be
inconsistent in size and varies depending on the timing of the
early redemption of debt and consequently is excluded from the
non-GAAP measures to facilitate a more meaningful evaluation of its
current operating performance and comparison to its past periods'
operating performance.
Pandemic-related lockdown charges
Pandemic-related lockdown charges are factory under-utilization
costs incurred due to the pandemic-related lockdown measures at our
factory in Wuxi, China. These charges are inconsistent in amount
and frequency and are excluded in the non-GAAP measures to
facilitate a more meaningful evaluation of its current operating
performance and comparison to its past periods’ operating
performance.
Purchase order cancellation fees
Purchase order cancellation fees are the costs incurred to
cancel certain purchase commitments made with the Company's
suppliers for component and equipment purchases that will not be
received due to change in forecasted demand. These charges are
inconsistent in amount and frequency and are excluded in the
non-GAAP measures to facilitate a more meaningful evaluation of its
current operating performance and comparison to its past periods’
operating performance.
Restructuring and other, net
Restructuring and other, net are costs associated with
restructuring plans that are primarily related to costs associated
with reduction in the Company’s workforce, exiting certain
facilities and other related costs, as well as charges or gains
from sale of properties. These costs or benefits do not reflect the
Company’s ongoing operating performance and consequently are
excluded from the non-GAAP measures to facilitate a more meaningful
evaluation of its current operating performance and comparison to
its past periods’ operating performance.
Share-based compensation
These expenses consist primarily of expenses for employee
share-based compensation. Given the variety of equity awards used
by companies, the varying methodologies for determining share-based
compensation expense, the subjective assumptions involved in those
determinations, and the volatility in valuations that can be driven
by market conditions outside the Company’s control, the Company
believes excluding share-based compensation expense enhances the
ability of management and investors to understand and assess the
underlying performance of its business over time and compare it
against the Company’s peers, a majority of whom also exclude
share-based compensation expense from their non-GAAP results.
Strategic investment losses or impairment charges
From time to time, the Company incurs losses, gains or
impairment charges from strategic investments that are measured and
accounted at fair value, under the equity method of accounting, as
available-for-sale debt securities or adjust for downward or upward
adjustments to the carrying value under the measurement alternative
if an impairment or observable price adjustment is recognized in
the current period that are not considered as part of its ongoing
operating performance. The resulting expense, gain or impairment
loss is inconsistent in amount and frequency and consequently is
excluded from the non-GAAP measures to facilitate a more meaningful
evaluation of its current operating performance and comparison to
its past periods’ operating performance.
Other charges
The other charges primarily include IT transformation costs.
These charges are inconsistent in amount and frequency and are
excluded in the non-GAAP measures to facilitate a more meaningful
evaluation of its current operating performance and comparison to
its past periods’ operating performance.
Income tax adjustments
Provision or benefit for income taxes represents the tax effects
of non-GAAP adjustments determined using a hybrid with and without
method and effective tax rate for the applicable adjustment and
jurisdiction.
Free cash flow
Free cash flow is a non-GAAP measure defined as net cash
provided by operating activities less acquisition of property,
equipment and leasehold improvements. Free cash flow does not
reflect non-cash items, net cash used or provided by financing
activities and net cash used or provided by investing activities,
other than acquisition of property, equipment and leasehold
improvements. This non-GAAP financial measure is used by management
to assess the Company's sources of liquidity, capital structure and
operating performance.
EBITDA, adjusted EBITDA and last twelve months (LTM) adjusted
EBITDA
EBITDA is defined as net income (loss) before income tax
expense, interest expense, interest income, depreciation and
amortization. Adjusted EBITDA excludes certain expenses, gains and
losses that the Company believes are not indicative of its core
operating results. These adjustments primarily include impairment
and other charges related to cost saving efforts, net gain
recognized from early redemption of debt and debt modification
costs, pandemic-related lockdown charges, purchase order
cancellation fees, restructuring and other, net, share-based
compensation, strategic investment losses (gains) or impairment
charges, other extraordinary charges such as factory
underutilization charges and BIS settlement penalty. LTM adjusted
EBITDA is defined as the total of last twelve months adjusted
EBITDA. These non-GAAP financial measures are used by management to
evaluate the Company’s debt portfolio and structure to comply with
its financial debt covenants.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230420005402/en/
Investor Relations Contact: Shanye Hudson, (510) 661-1600
shanye.hudson@seagate.com
Media Contact: Jen Bradfield
jennifer.l.bradfield@seagate.com
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