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Seagate Spins Earnings: Fool by Numbers

On Tuesday, Seagate Technology (NYSE: STX  ) released second-quarter 2007 earnings for the period ended Dec. 29.

  • Seagate's acquisition of Maxtor and the early retirement of a portion of its 8% notes created $95 million in one-time charges. Without them, per-share earnings would have been $0.39.
  • Operating margin dropped because of acquisition and related charges but should recover when the remaining charges from the Maxtor deal are worked through the system.
  • For the third quarter, management expects Seagate to earn between $0.56 and $0.60 (non-GAAP) on $2.9 billion to $3 billion in sales. For the year, executives say to expect $1.70 to $1.75 (non-GAAP) on $11.5 billion to $11.7 billion in revenue.
  • For trivia buffs: Seagate is the first in the history of the hard-drive industry to book $3 billion in revenue in a quarter.

(Figures in millions, except per-share data)

Income Statement Highlights

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Diluted Shares




Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005


Gross Margin




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*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights


Q2 2006

Q2 2005


Cash + ST Invest.




Accounts Rec.









Q2 2006

Q2 2005


Accounts Payable




Long-Term Debt




Learn the ways of the balance sheet.

Cash Flow Checkup

Q2 2006

Q2 2005


Cash From Ops.




Capital Expenditures




Free Cash Flow




Find out why Fools always follow the money.

Related Companies:

  • EMC (NYSE: EMC  )
  • Hitachi (NYSE: HIT  )
  • Sun Microsystems (Nasdaq: SUNW  )
  • Western Digital (NYSE: WDC  )

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check for more of our in-depth discussion of what the numbers mean.

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Fool contributor Tim Beyers, ranked 660 out of more than 20,600 in Motley Fool CAPS, owns shares of Seagate. Get the skinny on all the stocks he owns by checking Tim's Fool profile. The Motley Fool's disclosure policy always adds up.

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Tim Beyers

Tim Beyers first began writing for the Fool in 2003. Today, he's an analyst for Motley Fool Rule Breakers and Motley Fool Supernova. At, he covers disruptive ideas in technology and entertainment, though you'll most often find him writing and talking about the business of comics. Find him online at or send email to For more insights, follow Tim on Google+ and Twitter.

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