Seagate Technology plc reported unaudited consolidated earnings results for the second quarter and six months ended December 30, 2016. For the quarter, the company's revenue was $2,894 million against $2,986 million a year ago. Income from operations was $370 million against $229 million a year ago. Income before income taxes was $310 million against $180 million a year ago. Net income was $297 million or $1.00 per basic and diluted share against $165 million or $0.55 per basic and diluted share a year ago. On a non-GAAP basis, the company's net income was $412 million or $1.38 per diluted share. Cash flow from operations for the quarter was $656 million, up 72% year-over-year. Capital expenditures were $95 million for the December quarter for maintenance capital supporting acceleration of the ramp of new products in portfolio that utilize new tooling and equipment and the accelerated expansion of Korat facility to expedite the manufacturing footprint reductions that are in progress across many sites.

For the six months, the company's revenue was $5,691 million against $5,911 million a year ago. Income from operations was $592 million against $315 million a year ago. Income before income taxes was $483 million against $211 million a year ago. Net income was $464 million or $1.55 per diluted share against $198 million or $0.65 per diluted share a year ago. Net cash provided by operating activities was $1,247 million against $1,206 million a year ago. Acquisition of property, equipment and leasehold improvements was $235 million against $346 million a year ago. On a non-GAAP basis, the company's net income was $711 million or $2.38 per diluted share.

From a macro perspective, the company remains cautiously optimistic about the current macroeconomic environment and IT spending trends. The company expects overall exabyte demand to grow double digits in calendar 2017 over 2016. For the March quarter, the company anticipates the unit and exabyte demand environment to decline relatively seasonally. The company's outlook for enterprise demand is stable, and will continue to drive the high-capacity products in portfolio and minimize exposure to the low-capacity HDD market. The company is expecting to achieve revenues of approximately $2.7 billion, representing a slightly less seasonal decline in revenue than in the last 2 years. The company expects to maintain margins at the mid to higher end of long-term range at approximately 30%. The sequential decline is primarily due to seasonality and some factory underabsorption as transition facility and other activities through the end of June. In addition, assuming market conditions remain intact, believes company will achieve revenue growth in calendar 2017 with earnings per share of at least $4.50. Capital expenditures and maintenance capital requirement levels are expected to be less than 5% of revenue for the remainder of the fiscal year. Given the current demand outlook and assuming a stable macroeconomic environment, the company is confident in its ability to remain around the higher end of its long-term targeted margin range of 27% to 32% and within its operating income margin targeted range of 13% to 15% for fiscal year 2017.