Seagate sells an awful lot of HDDs

Company record

Seagate flogged 14.6 million hard disk drives (HDDs) in the December quarter (its Q2), a record for the company. Sales were $1.741bn and net income was $122m.

On a GAAP comparison (a conservative US accounting standard) Seagate and Seagate Technology, the previous owner of the hard drive business, reported a combined net loss of $1.792 billion.

Seagate Technology was dismembered in March 2000, with the software business hived off to Veritas for $19.2bn in stock, and the HDD and tape drive business sold to the management for $2bn (or $1.2bn - $800m of working capital was retained in the manufacturing business). At the time, analysts estimated this unit was worth $3bn on an earnings per share basis. Now, it looks like even more of a steal.

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