Seagate raises financial outlook
High prices don't drop demand
In brief Disk drive behemoth Seagate is giving a notably large bump to its fiscal first quarter revenue forecast today, citing strong demand, favorably high prices and a better product mix.
The world's largest hard-disk maker increased its forecast for the three moths ending September 28 to a range of $3.15bn to $3.25bn. During its end-of-year earnings call in July, the company had forecast revenue between $2.9bn to $3bn.
Seagate expects to report a gross profit margin expansion to about 24 per cent due to the favorable market conditions. The company excludes $27m from its adjusted earnings figure for amortization of purchased intangible assets and other acquisition-related charges.
The disk firm today also quashed rumors that were putting US authorities' undies in a bunch — that Seagate was entertaining thoughts of selling to a Chinese tech firm. Seagate CEO BIll Watkins had told the New York Times that a Chinese IT company had been interested in acquiring the Scotts Valley company, but declined to name anyone specifically.
Today, Seagate told Reuters "Just to be clear, Seagate has not received such an offer, and we are not trying to sell the company." ®