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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