Seagate Technology on Wednesday reported financial results for the third quarter of fiscal 2013, which ended March 29, 2013. While Seagate’s arch-rival Western Digital Corp. appeared to be immune to PC shipments drop in calendar Q1 2013, Seagate suffered decreases in sales volumes as well as revenues and profits.
During the fiscal third quarter, the company reported revenue of approximately $3.5 billion, gross margin of 26.9%, net income of $416 million and diluted earnings per share of $1.13. The firm shipped 55.7 million hard disk drives. Average selling price of Seagate’s hard drive in Q3 FY2013 was $63, whereas average capacity was 842GB. During the same period a year ago Seagate earned $4.4 billion in revenue, $1.1 billion in net income and reported gross margin of 37%. The firm shipped 60.7 million hard drives at $73 ASP.
Client compute shipments in Q3 FY2013 quarter decreased 7% sequentially to 36.6 million disk drives (down 16.5% year over year), including 17.0 million mobile hard drives and 19.6 million desktop hard drives.
Enterprise class shipments in the quarter increased 3% sequentially to 7.5 million. These results include 3.6 million hard drives for mission critical applications and 3.9 million hard drives for nearline storage applications.
Non-compute shipments in the March quarter totaled 11.6 million, roughly flat sequentially, including 5.8 million consumer electronics (CE) hard drives and 5.8 million Seagate branded hard drives.
“Seagate’s operational results this quarter again reflect strong execution. The continued advancement of cloud, mobile and open source computing are trends that are shifting data volumes toward personal and corporate cloud environments, creating tremendous opportunities for Seagate’s leading storage technology portfolio. Looking ahead, our top priorities are focused on the efficiency of our operations, extending our leadership in storage technology innovation and returning value to shareholders,” said Steve Luczo, Seagate’s chairman, president and chief executive officer.
During the March quarter, the industry is estimated to have shipped approximately 136 million hard drives, reflecting approximately 109EB (exabytes) of storage capacity, according to estimates by Seagate. Within this, Seagate shipments represented 41% market share and over 47EB of storage. Average capacity per drive was 842GB. For the first nine months of this fiscal year, Seagate has shipped over 138EB of storage, reflecting 33% year-over-year growth.
For the Q4 FY2013, Seagate expects the unit demand environment to be flat to slightly down, sequentially. Revenue is expected to be approximately $3.3 billion to $3.45 billion.