The company's revenue growth was driven by continued improvement in cloud customer demand for high capacity nearline drives and increased demand from enterprise and OEM markets. Seagate expects its HDD storage business to benefit from further growth in data demand, including potential demand driven by the adoption of Generative AI applications.

During the third quarter of fiscal year 2024, the Company established Singapore as its principal executive offices. The Company's income tax provisions recorded for the three months ended September 27, 2024 differed from the provisions for income taxes that would be derived by applying the Singaporean statutory rate of 17% to income before income taxes, primarily due to the net effect of tax benefits related to earnings generated in jurisdictions that are subject to tax incentive programs.

Seagate continues to exercise cost discipline and implement pricing actions to improve operational efficiency and profitability. This indicates a strategic focus on enhancing profitability through internal measures, rather than solely relying on volume growth.

The company repaid the entire outstanding principal amount of Term Loans A1, A2 and A3 from the proceeds of the 2028 Notes issuance, demonstrating effective capital structure management. This action also resulted in the termination of certain interest rate swap agreements.

The company terminated its then existing interest rate swap agreements as a result of the repayment of Term Loans A1, A2 and A3 and received cash proceeds of $25 million from the counterparty. The cash proceeds are reported within Net cash provided by operating activities in the Company's Condensed Consolidated Statements of Cash Flows as of September 29, 2023.

Seagate reached a settlement with the U.S. Department of Commerce's Bureau of Industry and Security (BIS) regarding sales to Huawei, agreeing to pay $300 million in quarterly installments. While this represents a significant financial obligation, reaching a settlement allows management to focus on core business activities.

The macroeconomic environment remains dynamic, which may impact the company's business and results of operations. Customer inventory adjustments have led to a slowdown in demand for the company's products, particularly in the mass capacity markets.

The company's results of operations are highly dependent on strong cloud, enterprise and consumer spending and the resulting demand for its products. Reduced demand, particularly from key cloud and enterprise customers, may result in a significant reduction or cancellation of purchases.

The company's operations are dependent upon its ability to protect its digital infrastructure and data. The company manages, stores and otherwise processes various proprietary information and sensitive or confidential data relating to its operations, as well as to its customers, suppliers, employees and other third parties, and stores subscribers' data on Lyve, its edge-to-cloud mass storage platform.

The company faces intense competition in the data storage industry. Principal sources of competition include HDD and SSD manufacturers, and companies that provide storage subsystems, including electronic manufacturing services and contract electronic manufacturing.

The markets for the company's data storage products are characterized by technological change. When this occurs, the company's products may be considered commodities, which has historically, and could in the future, result in downward pressure on prices.

The company also experiences competition from other companies that produce alternative storage technologies such as flash memory, where increasing capacity, decreasing cost, energy efficiency and improvements in performance have resulted in SSDs that offer increased competition with the company's lower capacity, smaller form factor HDDs.

Seagate continues to exercise cost discipline and implement pricing actions to improve operational efficiency and profitability. The macroeconomic environment remains dynamic, which may impact our business and results of operations.

The company continually seeks to make its cost structure and business processes more efficient. It is focused on increasing workforce flexibility and scalability, and improving overall competitiveness by leveraging its global capabilities, as well as external talent and skills, worldwide.

Because of the company's vertical design and manufacturing strategy, its operations have higher costs that are fixed or difficult to reduce in the short-term, including costs related to utilization of existing facilities and equipment. If the company fails to forecast demand accurately or if there is a partial or complete reduction in long-term demand for its products, it could be required to write off inventory and/or record excess capacity charges.

The company's ability to increase its revenue and maintain its market share depends on its ability to successfully introduce and achieve market acceptance of new products on a timely basis. If its products do not keep pace with customer requirements, its results of operations will be adversely affected.

The company faces technological, operational and financial challenges in developing new products. In addition, its investments in new product development may not yield the anticipated results. Its market share, revenue and results of operations in the future may be adversely affected if it fails to develop new products, identify business strategies and timely introduce competitive product offerings to meet technological shifts.

As part of its launch of the Mozaic hard drive platform, the company is transitioning to key areal density recording technologies that use the Heat-Assisted Magnetic Recording (HAMR) technology to increase HDD capacities. If its transitions to more advanced technologies, including the transition to HDDs utilizing HAMR technology, require development, qualification or production cycles that are longer than anticipated or if it otherwise fails to implement new HDD technologies successfully, it may lose sales and market share.

The company declared a quarterly cash dividend of $0.72 per share, demonstrating a commitment to returning capital to shareholders. However, the ability to pay dividends in the future is subject to business conditions, financial results, and legal restrictions.

As of September 27, 2024, $1.9 billion remained available for repurchase under the existing repurchase authorization limit. However, the company may limit or terminate the repurchase program at any time, and all repurchases are effected as redemptions in accordance with its Constitution.

For fiscal year 2025, the company expects capital expenditures to be higher than fiscal year 2024. The company requires substantial amounts of cash to fund any increased working capital requirements, future capital expenditures, scheduled payments of principal and interest on its indebtedness and payments of dividends.

The company faces increasing scrutiny related to environmental, social and governance activities. It risks damage to its reputation if it fails to act responsibly in a number of areas, such as diversity and inclusion, environmental stewardship, sustainability, supply chain management, climate change, the usage of AI, workplace conduct and human rights.

The company's operations are subject to U.S. and foreign laws and regulations relating to the protection of the environment, including those governing discharges of pollutants into the air and water, the management and disposal of hazardous substances and wastes and the cleanup of contaminated sites.

The company may be subject to various state, federal and international laws and regulations governing the environment, including those restricting the presence of certain substances in electronic products.

Changes in the macroeconomic environment have impacted and may continue to negatively impact the company's results of operations. Significant inflation and related increases in interest rates have negatively affected the company's business in recent quarters and could continue to negatively affect its business.

Geopolitical uncertainty, terrorism, instability or war, such as the military action against Ukraine launched by Russia and the latest developments in the Middle East conflict, natural disasters, public health issues and other business interruptions have caused and could cause damage or disruption to international commerce and the global economy.

The company faces uncertainty with regard to U.S. government trade policy. Current U.S. government trade policy includes tariffs on certain non-U.S. goods, including information and communication technology products. These measures may materially increase costs for goods imported into the United States.