On Tuesday, Seagate Technology
- 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
|
Q2 2006 |
Q2 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$2,996 |
$2,300 |
30.3% |
|
Net Profit |
$140 |
$287 |
(51.2%) |
|
EPS |
$0.23 |
$0.57 |
(59.6%) |
|
Diluted Shares |
598 |
507 |
17.9% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
18.22% |
25.70% |
(7.48) |
|
Operating Margin |
5.54% |
12.35% |
(6.81) |
|
Net Margin |
4.67% |
12.48% |
(7.81) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,560 |
$1,751 |
(10.9%) |
|
Accounts Rec. |
$1,251 |
$1,091 |
14.7% |
|
Inventory |
$771 |
$505 |
52.7% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,425 |
$1,057 |
34.8% |
|
Long-Term Debt |
$2,068 |
$970 |
113.2% |
Learn the ways of the balance sheet.
Cash Flow Checkup
|
Q2 2006 |
Q2 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$301 |
$768 |
(60.8%) |
|
Capital Expenditures |
$466 |
$353 |
32.0% |
|
Free Cash Flow |
($165) |
$415 |
N/A |
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:
- Check last year's Q2 numbers.
- Farewell, Al Shugart.
- Open up the case for hard drives.
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 Fool.com for more of our in-depth discussion of what the numbers mean.
High-tech. Biotech. Nanotech. Any tech. David Gardner and his team at Motley Fool Rule Breakers cover it all, and as a result, they're unearthed six stocks that have more than doubled in the first two years of the service. Sound intriguing? Click here to test-drive the service free for 30 days. There's no obligation to subscribe.
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.
