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Seagate Technology has updated its own financial outlook for the Q3 of FY2012 (calendar Q4 2011). Thanks to improved manufacturing capabilities, the company managed to beat both its revenue and shipments forecasts, partly due to acquisition of Samsung Electronics' hard drive business late in calendar 2011. Moreover, despite of lower unit shipments, Seagate will report higher revenue than for the same period a year ago.

“The better than expected results for the December quarter are attributed to the company’s outstanding operational performance and overall strong execution,” said Steve Luczo, Seagate chief exec and chairman.

The company shipped approximately 47 million disk drives, which included approximately 700 thousand Samsung disk drives, and expects to report revenue for its fiscal second quarter fiscal 2012 of $3.1 - $3.2 billion. Back in November, 2011, Seagate expected unit shipments of approximately 43 million units and revenue of approximately $2.8 billion.

Seagate's component and disk drive factories in Thailand have not been directly affected by the flood in the country in October; however, the company’s ability to manufacture hard disk drives has been impacted due to external component supply constraints. Nonetheless, the company demonstrated moderate drop in Q4 2011's hard drive shipments compared to Q4 2010 - only 3.1% in terms of units - amid major growth of revenue. Back in Q2 of its FY2011, it shipped 48.9 million disk drives and on a GAAP basis reported revenue of $2.7 billion. Market uncertainties allowed Seagate to enjoy $500 million in additional revenue during the quarter.

“Due to our best-in-class operations, diversified supply-chain and differentiated manufacturing footprint, we continuously optimized our builds for customers during the quarter. This is best evidenced by our company’s ability to increase the average capacity per drive shipped quarter-over-quarter to a record 653 gigabytes, despite the significant supply chain disruption. These results also reflect the hard work and resiliency of the Seagate teams and our strategic suppliers who are working to help the industry recover from the massive disruption caused by the flooding in Thailand,” added Mr. Luczo.

Tags: Seagate, HDD, Business


Comments currently: 8
Discussion started: 01/05/12 03:53:39 PM
Latest comment: 01/07/12 04:59:05 AM
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Its not hard to do when they more double the price of their drives, less than half the supply, and keep the actual production costs the same.
6 0 [Posted by: daneren2005  | Date: 01/05/12 03:53:39 PM]

Yup all of the HD suppliers raped consumers under the guise that there was a shortage. Consumers should remember this when they decide on their next storage purchase.
6 2 [Posted by: beenthere  | Date: 01/05/12 05:46:44 PM]

I can't wait until SSDs fall in price even more so I never have to buy a single mechanical drive again. Now that WD and Seagate acquired Samsung and Hitachi, soon we may be left with the loud Black Series, nothing special Blue and horrendously flaky Green line + short warranties (WD) and very unrealiable slow drives, also backed by shortened warranties (Seagate).

It is as if mechanical hard drive makers are giving us all the incentives in the world to actually move faster to SSDs. I am already seeing 240GB SSDs dip to sub-$300 levels. My 2TB Samsung F4 drive should serve me for the next 4-5 years, and hopefully by then 2TB SSDs will be ~ $200.
4 0 [Posted by: BestJinjo  | Date: 01/05/12 05:55:35 PM]
- collapse thread

Sure you can go to SSD, but I will not. The reliability is poor. Yes the performance is excellent. SSD still have a long ways to go to completely be a good reliable replacement for HDD. The reason why HDD are still the best is the reliability and the ease of extracting data when HDD are failing. Extracted data from a SSD just can not be done with out an electron microscope. Even if an electron microscope is used, the process to extract information is not automated.

A 2 TB SSD will not really happen if reliability is required. When NAND Flash memory uses smaller and smaller fabrication scale, the reliability gets worst. A 240 GB SSD is not as reliable as a 64 GB SSD, but the 240 GB SSD have a higher throughput rating. You will have to balance between reliability and throughput.

The high prices for HDD seems it is a good time to invest into SSD, but be cautious. It is best to backup the data every day or setup up a RAID-1 array with an HDD. An Intel Z68 and Highpoint RocketHybrid can make the RAID-1 setup with an SSD and HDD easier. Unfortunately these chipsets have these features only work in Windows.
0 0 [Posted by: tecknurd  | Date: 01/06/12 03:50:37 PM]

SSD manufactures should look at this as a Golden Opportunity to make some significant inroads to dethrone HD manufactures.
First it was Netflix then HD manufactures and now Verizon taking advantage of their customers.
It's payback time!
0 0 [Posted by: USAFANG67  | Date: 01/06/12 04:33:02 AM]

Until SSD mfgs. get the reliability and compatibility issues sorted out they will struggle. Yesterday it was acknowledged that Crucial has a new problem when their M4 reaches 5200 hours of "on time"...
2 2 [Posted by: beenthere  | Date: 01/06/12 05:40:38 AM]

I still don't trust SSDs, I do IT support for a large company, and when the SSDs die (in end users laptops), they're gone. At least mechanical drives seem to die slowly and I can get the data.
0 0 [Posted by: consure  | Date: 01/06/12 01:11:23 PM]

SSDs do have shortcomings that people tend to ignore in their passion for speed.
0 2 [Posted by: beenthere  | Date: 01/07/12 04:59:05 AM]


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