Feeds

Maxtor loss balloons on job cuts, falling ASPs

Tough Q3 for HDD maker

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

Maxtor, like Seagate, saw revenue rise above its expectations during its most recently completed fiscal quarter, its third, but unlike its rival better-than-anticipated sales proved insufficient to lift it out of the red.

For the three months to 25 September 2004, Maxtor achieved sales of $927.2m, down 13 per cent on the same period last year but up 14 per cent on Q2's $813.3m total.

Despite that gain, the company's net loss widened from Q2's 26.1m (11 cents a share) to $90.6m (36 cents a share). For Q3 2003, the company recorded a net income of $29.9m (12 cents a share). Contributing to Q3 2004's loss was $27.2m relating to the loss of 400 staff, plus a further amortisation of intangible assets of $5.1m, but that still leaves the company's loss far larger this quarter than Q2's

On a non-GAAP basis, excluding these charges, Maxtor reported a net loss of $58.3m (23 cents a share), compared to $45.8m (19 cents a share) in Q2.

Maxtor shipped 13.8m drives during the quarter, whose average selling price fell from $71 in Q2 to $67. Gross margins fell from nine per cent in Q2 to 6.4 per cent, largely thanks to the price dip. ®

Related stories

Maxtor to axe 400 workers
Maxtor boosts SATA HDD cache to 16MB
CE drive demand pushes Seagate into the black

Internet Security Threat Report 2014

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
French 'terror law' declares WAR on the INTERNET itself, say digi-rights folks
Liberté, Égalité, Fraternité: Two out of three ain't bad
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.