Feeds

Maxtor loss balloons on job cuts, falling ASPs

Tough Q3 for HDD maker

  • alert
  • submit to reddit

Boost IT visibility and business value

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

Best practices for enterprise data

More from The Register

next story
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

7 Elements of Radically Simple OS Migration
Avoid the typical headaches of OS migration during your next project by learning about 7 elements of radically simple OS migration.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?