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Seagate Ups Buyback Plan With Additional $2.5bn

Seagate has announced that the company's board has approved a plan to buy back a further $2.5 billion worth of common stock.

That pushes the firm's buyback authorisation up to a total of $3.5 billion - which is a quarter of the company's market value.

Seagate noted that it expects to fund the share repurchase program using cash, future cash flow from operations, and what the company called "potential alternative sources of financing" (a guitar, a hat, and a badly written sign... or maybe not).

Last week, Seagate reported its financial results for the first quarter of 2012, stating that it achieved revenue of $4.4 billion, with a gross margin of 37 per cent and a net income of $1.1 billion.

On a non-GAAP basis, excluding the net impact of "certain items", the firm said its net income was $1.2 billion, and diluted earnings per share of $2.64. In its fiscal statement, Seagate said it used approximately $1.1 billion to repurchase 43.1 million shares of common stock and for the early retirement of debt.

Steve Luczo, Chairman, President and CEO, commented: "Seagate delivered strong performance this quarter by concentrating our efforts toward supporting our customers as the recovery of the hard drive industry continues to progress."

Source: Reuters (opens in new tab)

Darren Allan

Darran has over 25 years of experience in digital and magazine publishing as a writer and editor. He's also an author, having co-written a novel published by Little, Brown (Hachette UK). He currently writes news, features and buying guides for TechRadar, and occasionally other Future websites such as T3 or Creative Bloq and he's a copy editor for TechRadar Pro. Darrran has written for a large number of tech and gaming websites/magazines in the past, including Web User and ComputerActive. He has also worked at IDG Media, having been the Editor of PC Games Solutions and the Deputy Editor of PC Home.