Seagate Technology plc reported unaudited consolidated earnings results for the second quarter and six months ended December 29, 2017. For the quarter, the company reported revenue of $2,914 million compared to $2,894 million a year ago. Income from operations was $433 million compared to $370 million a year ago. Income before income taxes was $371 million compared to $310 million a year ago. Net income was $159 million or $0.55 per basic and diluted share compared to $297 million or $1.00 per basic and diluted share a year ago. Non-GAAP net income was $431 million or $1.48 per diluted share. During the second quarter, the company generated $850 million in cash flow from operations and $773 million in free cash flow. Capital expenditures were $77 million for the December quarter, for supporting the continued ramp of new highest-capacity HDD products and maintenance capital.

For the six months, the company reported revenue of $5,546 million compared to $5,691 million a year ago. Income from operations was $688 million compared to $592 million a year ago. Income before income taxes was $559 million compared to $483 million a year ago. Net income was $340 million or $1.17 per diluted share compared to $464 million or $1.55 per diluted share a year ago. Net cash provided by operating activities was $1,087 million compared to $1,247 million a year ago. Acquisition of property, equipment and leasehold improvements was $201 million compared to $235 million a year ago. Non-GAAP net income was $710 million or $2.44 per diluted share. The company announced $900 million in free cash flow.

For the third quarter ending March 2018, The company expects capital expenditures to be approximately $120 million, primarily for maintenance capital and some incremental capital to address the strong cloud market demand. The company expects total revenue to be down 5% to 7% sequentially from the December quarter. This represents lower sequential revenue declines than the last few years and year-over-year revenue growth for Seagate.

The company anticipated capital expenditures to remain less than 5% of total consolidated revenue for fiscal year 2018.