Shares of Seagate Technology Plc (NASDAQ: STX), a provider of electronic data storage products, have risen sharply in early trading today after the company reported preliminary second-quarter financial results.
After market close on Tuesday, STX said that it expects to report revenue of at least $3.6 billion for the second quarter ended December 28, 2012. The company expects to report second-quarter gross margin of more than 27%. The preliminary results are above the company’s previous forecast for revenue of approximately $3.5 billion and gross margin at the lower end of its long-term non-GAAP gross margin range of 27% to 32%.
STX also said that during the second quarter of fiscal 2013, the company paid $1.1 billion in share redemptions and dividend payments that included a one-time acceleration of the December 2012 dividend payment. Meanwhile, the company redeemed around 30 million ordinary shares and exited December 2012 with 358 million outstanding shares.
At the end of December 28, 2012, the company had cash, cash equivalents, restricted cash and short-term investments of approximately $2 billion.
Seagate will report its full fiscal second-quarter financial results after market close on Monday, January 28, 2013.
STX shares have risen sharply in early trading today after investors digested the company’s preliminary results for the second quarter ended December 28, 2012. At last check, the stock was trading 3.71% higher at $32.56 on volume of 112,633. The stock hit an intra-day high of $32.70 in early trading today.
In the last one year, STX shares have gained more than 79%, compared to a gain of more than 15% for the NASDAQ.
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