News
 

Bookmark and Share

(4) 

Seagate Technology on Thursday announced selected preliminary financial results for its fourth fiscal quarter of 2012, which ended on June 29, 2012. Although the company shipped record amount of hard disk drives during the quarter, it failed to achieve desired fiscal performance due to dropping prices on HDDs as the industry is rapidly recovering as well as due to a product issue that affected Seagate's enterprise products.

“Seagate expects to report another record quarter of revenue in the June quarter, however we did not meet our expected revenue and margin plan,” said Steve Luczo, Seagate chairman and chief executive officer.

Seagate expects to report record unit shipments for the June quarter of approximately 66 million, reflecting approximately 45 exabytes of storage capacity and maintaining approximately 42% market share. The company also projects to report record revenue of approximately $4.5 billion and non-GAAP gross margin of 33.6%. These preliminary results compare to Seagate's previous expectations for revenue of at least $5 billion and non-GAAP gross margin of at least 34.5%.

“The June quarter’s shortfall was due primarily to two factors. First, we did not achieve our planned market share growth as we reduced shipments in response to the industry’s faster than expected recovery from their supply chain disruption. Second, we experienced an isolated supplier quality issue that affected one of our enterprise product lines. This product issue impacted enterprise product unit shipments by approximately 1.5 million units and drove our non-GAAP gross margin below our targeted plan. While this disruption to our business was disappointing, we acted quickly and conservatively by suspending shipments of the affected products. We have resolved the issue and have resumed fulfilling our supply commitments to customers,” explained Mr. Luczo.

Seagate will report full fiscal fourth quarter 2012 financial results on Monday, July 30, 2012 after the close of the market.

“Based on the macro-economic concerns indicated by a broad base of customers, we are approaching the September quarter conservatively and aligning our business for a relatively flat addressable market and modest improvements in our product mix. We are adjusting our production and inventory planning accordingly, and we expect average selling prices and margins to remain relatively stable in the September quarter. We also continue to expect to exit the calendar year with non-GAAP gross margins exceeding 30%,” stressed the head of Seagate.

Tags: Seagate, HDD, Business

Discussion

Comments currently: 4
Discussion started: 07/06/12 12:42:54 PM
Latest comment: 07/09/12 11:57:21 AM
Expand all threads | Collapse all threads

[1-2]

1. 
>we did not achieve our planned market share growth as we reduced shipments in response to the industry’s faster than expected recovery from their supply chain disruption.


what?
1 0 [Posted by: Marburg U  | Date: 07/06/12 12:42:54 PM]
Reply
- collapse thread

 
The flooding in Taiwan disrupted their supply chain and they had to drop their drive prices faster that expected because the supply increased faster than expected. Does that help?
0 0 [Posted by: veli05  | Date: 07/09/12 11:54:13 AM]
Reply

2. 
Not enough price gouging so they reduced supply in the hope of continued price gouging...............'kin pirates

Cant wait to see these bandits in court for price fixing
0 0 [Posted by: alpha0ne  | Date: 07/07/12 10:55:40 PM]
Reply
- collapse thread

 
Hardly, it is basic economics and only economic trends of supply and demand that determined the drive prices for the last few years. Besides Seagate has no direct control on when or how their supply is given to them, thus your statement makes even less sense
0 0 [Posted by: veli05  | Date: 07/09/12 11:57:21 AM]
Reply

[1-2]

Add your Comment




Related news

Latest News

Monday, April 14, 2014

8:23 am | Microsoft Vows to Release Xbox 360 Emulator for Xbox One. Microsoft Xbox One May Gain Compatibility with Xbox 360 Games

Tuesday, April 1, 2014

10:39 am | Microsoft Reveals Kinect for Windows v2 Hardware. Launch of New Kinect for Windows Approaches

Tuesday, March 25, 2014

1:57 pm | Facebook to Acquire Virtual Reality Pioneer, Oculus VR. Facebook Considers Virtual Reality as Next-Gen Social Platform

1:35 pm | Intel Acquires Maker of Wearable Computing Devices. Basis Science Becomes Fully-Owned Subsidiary of Intel

Monday, March 24, 2014

10:53 pm | Global UHD TV Shipments Total 1.6 Million Units in 2013 – Analysts. China Ahead of the Whole World with 4K TV Adoption

10:40 pm | Crytek to Adopt AMD Mantle Mantle API for CryEngine. Leading Game Developer Adopts AMD Mantle

9:08 pm | Microsoft Unleashes DirectX 12: One API for PCs, Mobile Gadgets and Xbox One. Microsoft Promises Increased Performance, New Features with DirectX 12

3:33 pm | PowerVR Wizard: Imagination Reveals World’s First Ray-Tracing GPU IP for Mobile Devices. Imagination Technologies Brings Ray-Tracing, Hybrid Rendering Modes to Smartphones and Tablets

2:00 pm | Nokia Now Expects to Close Deal with Microsoft in Q2. Sale of Nokia’s Division to Close Next Month