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Seagate Technology on Friday said it grew first-quarter revenues nearly 35% year-over-year, thanks in part to positive structural change in storage industry dynamics. 

The company's non-GAAP diluted earnings came to$2.35 per share on revenue of$3.12 billion.

Seagate's consistent financial results, CEO Dave Mosley said on a conference call, is due in part to the growing demand for mass capacity storage. 

"We believe these trends reflect the healthy structural changes that have taken place in the industry in recent years," he said 

There are still significant challenges in the marketplace, Mosley said. 

"We are seeing a confluence of factors creating inflationary pressures and acute supply chain disruption," he said. "These include semiconductor component shortages and freight logistics challenges that are creating cost pressures and the impact of critical end-product assemblies for certain customers." 

Still, Seagate's revenue from the mass capacity markets exceeded$2 billion for the first time, reflecting broad-based growth across each of the end markets. 

"The cloud is the strongest contributor to the mass capacity markets and Seagate's revenue growth," Mosley said. "Ongoing investments to build and equip new data centers have translated into stable, healthy demand for multiple quarters now, and we expect this trend to continue. Over the past 5 years, the number of hyperscale data centers has more than doubled to nearly 600 worldwide with approximately 200 more on the way."

Hyperscale customers support a more stable long-term growth outlook, he said, given that the timing of their investments and infrastructure buildup is not synchronized.  

The company generated$496 million in cash flow from operations and$379 million in free cash flow during Q1. 

Seagate also said its board of directors declared a quarterly cash dividend of 70 cents per share.

For Q2 of fiscal 2022, Seagate is expecting a non-GAAP diluted EPS of$2.35, plus or minus 15 cents. Its revenue outlook is$3.1 billion, plus or minus$150 million.

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• Oracle shares rebound, fiscal Q4 view tops expectations
• PagerDuty stock surges as fiscal Q4 revenue, forecast top expectations
• DocuSign shares plunge, Q1 and year views miss expectations
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