The Channel logo

News

By | Austin Modine 18th January 2008 03:00

Seagate posts good-ish quarter, fuels Wall Street jitters

Ain't no pleasing some folk

Seagate's fiscal '08 second quarter net income nearly tripled from a year ago and revenue jumped 14 per cent.

Unit shipments hit 50 million, up 20 per cent year-over-year, on the back of strong demand from digital equipment manufacturers.

Freckle-faced and brimming with pride, Seagate came skipping home to investors today clutching its homework like a rare treasure. But investors, like over-expectant parents, are rarely satisfied.

Revenue was $3.42bn for the quarter, short of the $3.49bn Wall Street was looking for. An admissible "B" in an "A+" sort of family.

"Seagate," the investors said coolly today, sitting the hard drive manufacturer down on the living room couch. "We aren't angry at you...just... disappointed."

Sometimes that hurts more than shouting. "I'll do better next quarter. I promise!"

Net income was $403m for the quarter ended Dec. 28, compared with $140m a year earlier. The results included $27m restructuring charges and $31m from the company's acquisitions of Maxtor, EVault and MetaLINCS.

Seagate expects Q3 revenue in the range of $3.2bn to $3.3bn.

"At the mid-point, this guidance represents a 15 per cent revenue increase year-over-year," the company said.

The companyhasn't seen evidence that OEMs are cutting orders because of a slowing US economy. But investors are clearly looking for a reason to scamper. At the market's close, Seagate stock was down six per cent. ®

comment icon Read 3 comments on this article alert Send corrections

Opinion

Killer whale

Chris Mellor

Firm cites 'low demand' plus 'abusers'

Tim Worstall

Or why the reversal of globalisation ain't gonna 'appen
The full Spanglish breakfast: mealy pudding, bacon, black pudding, sausages, fried egg, toast
Blood image

Trevor Pott

Can the storage giant overcome a lack of necessary leadership?

Features

No, silly... he was the fall guy for years of Finnish folly
Fraud image
Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that