Feeds

Seagate hit by component famine

It's gonna last well into March 2001

  • alert
  • submit to reddit

Seven Steps to Software Security

Seagate, the world's biggest HDD drive company, today said it would be unable to meet all customer demand because of a components shortage. It expects this to continue for at last well into the start of 2001.

Charles Pope, the company's chief financial officer specifically referred to unfulfilled demand in the Pacific Rim.

The problems will have a knock-on effect on the revenues as the traditional declinines in unit prices will not be countered by better sales. Pope also said that the price of a hard drive had dropped more than average this year - ten per cent as opposed to the usual eight per cent decline.

The company said that Asia has been noticably affected by the shortages. The region accounted for 26 per cent of total sales revenue last quarter, but that had fallen to 22 per cent this time round.

To offset the drop in revenues the company is cutting costs by reducing the number of employees. Six months ago Seagate employed 59,656 people but by the end of the quarter ending in September, this number had been slashed to just under 57,000.

Despite all the doom and gloom, the company's results for Q4, ending 30 September, were not too shabby. Net income was up from $2 million to $75 million, or 31 cents per share for the same period a year earlier. Shipments stood at 11.6 million drives, also higher - by 13 per cent - than a year ago. ®

Boost IT visibility and business value

More from The Register

next story
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.