“Seagate's March quarter financial results were consistent with our revised outlook, with record nearline product revenue driven by cloud customers partially offsetting multiple macro related headwinds that impacted other end markets, particularly video and image applications, and pressured profitability,” said Dave Mosley, Seagate’s chief executive officer.

“Our focus is on mitigating these external challenges through ongoing expense discipline, new pricing strategies and operational efficiencies. We are also continuing to execute our strong product roadmap to address customer demand for cost-efficient, mass capacity solutions. In the March quarter, we began the volume ramp of our 20-plus terabyte products, which, combined with continued healthy cloud demand, support our outlook for double-digit fiscal year revenue growth.”

The Company generated $460 million in cash flow from operations and $363 million in free cash flow during the fiscal third quarter 2022. Seagate’s balance sheet remains healthy, and during the fiscal third quarter the Company paid cash dividends of $154 million, repurchased 4.2 million ordinary shares for $417 million and repaid $220 million to retire the 2022 Senior Notes. Cash and cash equivalents totaled $1.1 billion. There were 216 million ordinary shares issued and outstanding as of the end of the quarter.

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 7, 2022 to shareholders of record as of the close of business on June 24, 2022. 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.

Business outlook

The business outlook for the fiscal fourth quarter 2022 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 2022:

- Revenue of $2.8 billion, plus or minus $150 million

- Non-GAAP diluted EPS of $1.90, plus or minus $0.20

Guidance regarding non-GAAP diluted EPS excludes known charges related to amortization of acquired intangible assets of $0.02 per share and estimated share-based compensation expenses of $0.18 per share.

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