Thread regarding Seagate Technology Inc. layoffs

FQ1 2020 Results

FQ1 2020 Results

Non-GAAP
Year-Over-Year Revenue DECREASE = 13.8%
Year-Over-Year Net income DECREASE = 45.9 (ouch!)
Year-Over-Year Earnings Per Share DECREASE = 41.4%

Operating Expenses trending up.

Look out below...

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Post ID: @11OfsynA

12 replies (most recent on top)

5 to 10M per quarter in innovation R and D solves 3 issues:

  1. S—s in investors into thinking there is a future in HDD
  2. CEO gets to have pet projects worked on
  3. CEO and other senior execs keeps their friends employed. There is a lot of this in general and just look at the CEO s direct reports who are incompetent and this fit into this category.
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Post ID: @11OfsynA-3ato

They haven't decided to totally cut off all funds to R&D yet and we still have a large Seagate Research group funding all kinds of pet projects and stuff. Once I see that cut I'll have to admit, they are going to cash flow it all the way down. I have heard there is a giant EDS re-org and layoff coming.

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Post ID: @11OfsynA-2bnk

Poor yields and more heads and disks per drive for sure are hurting costs. And a lack of pricing power in all markets driving down revenue. Who is buying a notebook HDD? Most want improved battery life from SSD. Cloud Kings always get lower prices over time and stx has to deliver and nand is a better proposition for lost use cases. Manufacturers in all markets always get squeezed to zero and worse for companies trying to extract all value from a company to give to investors because there is no money for innovation. Anyone notice how low r and d expenses have gotten ?

When does stx cut all the non value add groups at the company.

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Post ID: @11OfsynA-2wah

Forget cash for now. Income has crashed. Why? Cost of revenue increased. The lower profit margin doesn't account for it all. So what's costing so much lately? Poor yields? Any ideas?

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Post ID: @11OfsynA-2bea

No one is saying Seagate is a successful company. The issue is $400m sounds like a lot to use little folk, but out of $10B plus access to billions in loans, its nada. As one of the posters stated, 7 years give or take is about right if you DO THE MATH.

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Post ID: @11OfsynA-1mbu

It is called cash flowing the business. Expect no innovation, no new products, and just leaning out the staff continuously until it is over. If you have less than 7 years left in your career you might be okay. Everyone else needs to ask what are you still doing working here.

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Post ID: @11OfsynA-1itr

6 to 8 quarters. If HAMR has issues it will be faster. Dual actuator will flop and included in above time frame.

Also, Look at 400m drop in cash balance. Days payable up to 90 days and not paying suppliers to keep cash flow from operations artificially high. 17m spent in the quarter on layoffs and will grow from here.

There is only 100m of retained earnings after paying the dividend. They will protect the dividend at all costs and with dividend increase beginning in January expect big layoffs through February or just in time for the holidays.

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Post ID: @11OfsynA-1nln

You all are really bad at reading. Q: Want to know when the buybacks and dividends will stop? Do the f—ing math. A: When Seagate makes less profit to pay for them (which are all public and disclosed quarterly). So Seagate spent over $2billion on buybacks, dividends, and executive bonuses vs making $10.39B last year. So minus the profit margin and you get operating costs vs profit AKA extra money. What do you know, the leftover money can be used for, let's guess??? Bonuses, higher wages, R&D, other needs like new chairs and most importantly buybacks and dividends. You get your bonus, so should the shareholders. The funny part, you get a 5 to 20% bonus while the shareholders only get 4% "bonuses". Plus if you are lucky to have RSUs or smart enough to get Seagate's 15% discount off stock as ESPP you too are making a free 15% on 10% of your salary and 4% income from those shares. The rich get richer because they know how to save money and make money work for them EVEN when a company like Seagate IS going out of business slowly due to its lack of innovation. Stop b–ching and get working.

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Post ID: @11OfsynA-1hyv

So, at this rate, how long will it be before steadily declining revenue & income impact cash flow and prevents buybacks and possibly impacts the dividend? That will be the bang point.

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Post ID: @11OfsynA-1pin

Stock price artificially propped up by buybacks

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Post ID: @11OfsynA-1rzr

Yet the street yawned, so what is your point?

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Post ID: @11OfsynA-1omd

Perfect conditions to slash some jobs

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Post ID: @11OfsynA-iyc

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