There has been no communication to deal with all of the talk of the big RIFs coming up with the major downtrend that occurred last quarter and at least the next few quarters, and all the good people that are suddenly targeted and laid off. The people who I thought were the future.of the company are just disposed of. I just don't like what is happening.
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As far as the near term future....I have a bad feeling about this. On the surface the Q2 looked good, but looking deeper from a self interest perspective it's not good. Meaning there is not enough cash for a big bonus and/or significant raises going forward. A huge 500 mil debt payment was due and made and not refinanced, which is good long term I guess. However, free cash flow crashed below the ability to pay the dividend, and cash on hand dropped hard. Revenue and margins continued on a declining trend and are projected significantly lower next quarter. Liquidity might dry up unless more deep cuts are planned or a new debt offering is done. Expect very small bonus and no raises this year.
sweet severance packages are bye bye
site closures for sure
we do not need all of these design centers
If 2.3B is the forcast then there is no income this quarter unless significant cost reduction ion. With all previous cost cutting efforts exhausted I wonder what tricks are left in the playbook.
$2,3B revenue forecast for the march q. that is down almost 20% from the sept quarter. not a lot left to pay the dividend or capital. cuts will have to be deep
HDD was worse than street expectations. Systems and Flash beat expectations by $30M. Congrats to systems and ssd teams.
My humble request to the naysayers - please please please get the f*** out. This place is not for you. It s---s, it’s poorly managed, it’s going to die, blah blah blah.
Get out and help us bring our opex down further.
Awesome execution DM. Hang in there we support you.
cash flow is less than dividends to be paid. Yes borrowing to pay dividends is not a strong business.
we pulled in orders from Q3 into Q2 to make the numbers. not a strong business.
gets a lot worse from here.
op ex is down from all the secret RIFs happening
another $60M per quarter in op ex is coming - all in secret
Look at that cash balance continuing to decrease
Great quarter. Earnings beat, revenue beat. OpEx less than 400M. Big fat bonus on the way. I aint complaining. Future is bright.
stock buybacks by stx are driving the stock price
once notebook desktop and mission go away completely in the next year it is just cloud. STX is not cost competitive with HAMR for years from now if ever and it will not replace lost revenue of the dead segments. while NAND QLC is going to compete directly with HDD's value proposition and STX will keep dropping price, margins will be small and cut cut cut will be serious
Actually, it’s the other way round. You have shades on, dark glasses. So the world looks dark. Taken them off and you will be happier.
The futures so bright I gotta wear shades. Why did Enron stock go up so high even though it was a scam and crashed down to zero instantly. Oh, that's right. Wall street must be smart so it just had to be legit until it wasn't. So many other examples. Ha. There's no shortage of fools and s---ers. Gotta wear shades...
I do not understand the doom and gloom. If the future of the company is so bad, if the debt is a concern, then why is the stock going up? It is 25% up in the last month. Surely the market and all the analysts whose job is to figure these thing out would know more about SSD market capture, price erosion, etc. then we do. We do not have that level of macro visibility. All I know is that the world needs cheap storage and therefore HDD would continue to survive and perhaps even thrive like in last 25 years. This is the same reason the company has invested billions in HAMR and would continue to invest regardless of what you believe. Ultimately it is the market that decides. If there was no need for cheap storage, HAMR would have been shut down five years ago when it first failed to produce the product that was promised.
What do you expect when the CEO surrounds himself with “yes men and women” and hires people like the CIO and have him runs corporate strategy. Also does not help with haivng an activist investor in the Board of Directors. DM, like the activist investor, just want to milk as much out of STX for as long as possible. They don’t care about the lower ranks as these are just some numbers on the balanced sheet them.
I did not read it that way. People who have been so loyal to the company want to see STX succeed regardless if they are caught up in the layoff themself. Just tough to be in the trenches and see a lack of direction and vps and directors not do the right thing to make the company better. closing facilities just makes sense with the few products remaining but the company has difficulty making decisons and will wait until the last possible moment and then make many unneeded errors.
You seem gleeful at the prospect of others, especially of a certain age and gender, losing their jobs. That's really sick and immoral to think that way. I hope I'm just mistakenly reading that in. I'd hate to think sick individuals would celebrate lay offs and the company shrinking. Although, we should be prepared.
WD said they will cut 800 million so Seagate will strive to cut one billion. Bye Shakopee and Singapore design center, bye old male directors, anything else? Which VP's will go?
Stock price is still down from Big Dave announced as new CEO. The continued fascination with chasing WDC stock price to the bottom is just crazy. So yeah.... CEO mindset will be to one-up WDC on layoffs.
Wall Street loves layoffs, always good for stock price
They are not closing fabs
WD is reacting to their flash business. How does this remotely relate to STX business?
WD announced $800M in cost cutting due to the market, yet STX has said nothing. This type of cut aligns with the 5000 layoff number and the site closures people have been talking about on this forum. It is coming and they do not want to be honest. People, this is serious.
httpsww.theregister.co.uk/2019/01/25/western_digital_2q19_results/
Bring back Luczo as CEO! He truly empathized with the employees. Our current CEO just tells people we are overpaid whiners because we want a vision for the company and a company that lives its values.
STX has no real vision - just more of the same - and cannot live the values they keep mentioning. Just a bunch of BS!
Shugart coming back? If true, amazing. But even he can't solve HAMR. BTW, Shugart's name was Al, not Samuel or Sammy.
DON'T LOSE FAITH: I hear that Luczko plans to bring Sam Shugaart back. Can't you see, Steve and Shagart, hand in hand, walking across the HAMR threshold? A glorious thing for an industrial engineer to see. This will fix all. No, Trump can't fix it. Only Luzkco and HAMMER and Sam can fix it. Got a problem? Use a HAMR. ANd swing that HAMMER with the best people that swung it.
You are absolutely wrong
Seagate will be known for century in business course.
Just like Kodak.
@Xgbvx8J-1qxb..You are absolutely right about there being no loyalty ttowars employees by management.Like you i have tried to put away some of my wages to cover me when the sh1t hits the fan.I have no loyalty at all towards Seagate.Its just a job (a poorly paid one albeit).Im not alone in thinking the atitude by management is thats its a them against employees.My disloyalty towards Seagate is that if i see things happening that shouldnt be happening i turn a blind eye.
Someone I worked with at lco always did what was best for Seagate and was honest with his SVP. Weeks later he was RIFed. Definitely do not do what is best for Seagate and do not speak your mind, every one is in self preservation mode and not in Seagate preservation mode. Seagate will be unknown in 5 to 10 years.
If you express your real opinion at Seagate, you are done for and your career will never go forward. That's why everybody comes to this site. Yes, there is no more middle class. 1/2 the country makes 30K per year or less. It's all skimmed by the Maduro types at the top.
1000 views on this thread tells you everything you need to know about the state of Seagate. more people visit this site thank our internal 'happy pages for engagement increase' - sad
@1qxb works for you - kudos. i have three kids and i barely make ends meet, i am an engineer. i guess, welcome to the new middle class where we are the same as the poor expect we do not do crack
This is the normal condition of working at Seagate and why I drive a c-appy 15 year old junker, live poor, and have saved 30-50% of my income for years now. It's the Seagate Way for employees. Now I have about 2 full years of pay in cash stashed up for when I get laid off. Have you prepared or are you going to be effing screwed? Wake up, Seagate has no loyalty and will fire you in a second without thought of how good you are, or anything you've ever done for the company. You must be forgiven if you haven't been around long I guess. Better start learning quick.
You don't think there will be positive news at the next CEO all hands meetings? Maybe Ravi has a new corp strategy to announce to make you feel better.
DM says silence is golden.