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, July 21, 2014

12:56 pm | Microsoft to Fire 18,000 Employees to Boost Efficiency. Microsoft to Perform Massive Job Cut Ever Following Acquisition of Nokia

Tuesday, July 15, 2014

6:11 am | Apple Teams Up with IBM to Make iPhone and iPad Ultimate Tools for Businesses and Enterprises. IBM to Sell Business-Optimized iPhone and iPad Devices

Monday, July 14, 2014

6:01 am | IBM to Invest $3 Billion In Research of Next-Gen Chips, Process Technologies. IBM to Fund Development of 7nm and Below Process Technologies, Help to Create Post-Silicon Future

5:58 am | Intel Postpones Launch of High-End “Broadwell-K” Processors to July – September, 2015. High-End Core i “Broadwell” Processors Scheduled to Arrive in Q3 2015

5:50 am | Intel Delays Introduction of Core M “Broadwell” Processors Further. Low-Power Broadwell Chips Due in Late 2014