Seagate sees red in Q4
Betting on tiny drives
Troubled hard drive maker Seagate yesterday reported disappointing results for its fourth quarter and full year.
Seagate posted $1.34bn in revenue for the fourth quarter and a net loss of $33m. This is quite a flip from the $1.55bn in revenue and net income of $160m reported in the same period last year. For the full year, Seagate showed $6.22bn in revenue and net income of $529m. Last year, the company managed to pull in $6.49bn in revenue and to post $641m in net income.
"The market dynamics in fiscal year 2004 presented many challenges for Seagate and the industry," said Steve Luczo, Seagate's chairman.
To deal with a lack of demand for its core server and desktop products, Seagate decided to roll out a new line of product for notebooks and consumer devices such as MP3 players and digital video recorders. Seagate hopes its new line of tiny drives will boost revenue in the coming year and give it a bigger chunk of the overall storage market.
In June, Seagate cut 3,000 jobs to deal with the declining 2004 revenue. ®