Feeds

Seagate fscks up: Disk drive sales fall short by $500m

Quality slip and flood-proof competitors fingered

Intelligent flash storage arrays

Seagate will miss its fourth quarter's sales target as its competitors recover faster than expected from floods that knackered hard drive supplies.

The storage biz also had a quality-control issue with an enterprise disk product, which reduced shipments by 1.5 million units to 66 million, and increased costs. It issued a preliminary set of quarterly results to prepare Wall Street for the shortfall, adding that it expects to report $4.5bn (£2.9bn) revenues instead of $5bn (£3.2bn) and a 1 per cent fall in its gross margin to 33.6 per cent.

Stifel Nicolaus analyst Aaron Rakers thinks rival Western Digital may have gained market share compared to Seagate in its final fiscal quarter of 2012.

In its previous quarter Seagate made a $1.1bn profit on revenues of $4.4bn so it should make a healthy enough profit on sales of $4.5bn; let's say, half a billion dollars. It sees no market growth in the next quarter due to weakening economic conditions. ®

Intelligent flash storage arrays

Whitepapers

Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of 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?
Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.