Belfast Telegraph

Seagate Technology enjoys 41% surge in its annual revenues

Seagate’s Londonderry facility
Seagate’s Londonderry facility
Ryan McAleer

By Ryan McAleer

Londonderry hard drives manufacturer Seagate has reported a 41% surge in turnover to £147m.

Seagate Technology (Ireland), which employs 1,329 people, saw its turnover hit $186.9m (£147m) for the 12 months to June 29 2018, up from $132.9m (£104.6m) last year.

Pre-tax profits were also up by 30% to $15.4m (£12.1m), from $11.9m (£9.4m) in 2017. Seagate manufactures hard disk drives and storage solutions.

The company said the 41% surge in turnover was mainly due to increase demand for read-write heads for its hard disk drives. The new report states that during 2018, it continued to invest in its manufacturing capability of thin film-recording head wafers, employing the very latest product and process technologies.

It states that: "The directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook."

Based in Londonderry since 1993, Seagate Technology's workforce of 1,329 was slightly up on the 1,312 from 2017. Most work at the Springtown Industrial Estate.

Its new accounts show it spent $78.4m (£62m) in staff costs last year. Although domiciled in Northern Ireland, Seagate Technology (Ireland) is actually registered in the Cayman Islands and is a subsidiary of Seagate Technology International. Its ultimate parent undertaking is Seagate Technology plc, which is incorporated in the Republic.

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Seagate is now under new leadership. Its executive vice president and chief financial officer David Morton Jr resigned from the company at the start of August this year to take up a senior post at another firm.

Kathryn Scolnick has been named as interim CFO while the company searches for a successor. She is listed as the sole director of Seagate Technology (Ireland).

Last month Seagate plc posted its financial results for the first quarter of the 2019 reporting period, revealing revenues of $2.9bn (£2.3bn), up 14% on last year.

The company said it had "achieved strong financial results in revenue, profitability and cash flow, reflecting solid execution and positive demand for our products across multiple markets".

Seagate's chief executive, Dave Mosley, said: "By delivering competitive cost-effective mass storage solutions, Seagate is a crucial supplier in supporting the data age digital transformations that are happening across the storage marketplace.

"We believe our deep storage industry expertise, leading technology portfolio and focused execution will continue to drive long-term success."

Belfast Telegraph