Seagate sales droop: It was a nearline miss, says CEO
Not about PCs this time
Something is still amiss with disks, but not PCs this time: Seagate warns that its latest quarter’s revenues will be 23 per cent less than a year ago, continuing the revenue slide seen in the previous quarter, blamed on low PC sales.
For its first fiscal 2016 quarter, which finished on 2 October, Seagate expects revenues of approximately $2.9bn, the same as the previous quarter, and contrasting badly with the $3.8bn reported a year ago. The company had expected to see revenues of $2.9bn to $3.1bn so it might just miss the low end of this range.
It saw lower than expected demand for 4TB and 6TB nearline HDD products.
Chairman and CEO STeve Luczo ‘fessed up: “We are disappointed we did not execute a product portfolio that fully addressed the demand in the nearline market. Looking ahead, we are confident that our nearline product portfolio will be fully competitive by our fiscal third quarter.”
Seagate had announced 8TB nearline HDD products in September, but not a near line product, and expects, with a near line 8TB disk, to increase nearline disk sales.
If Seagate lost sales in the nearline market then main competitor WD/HGST benefited. HGST has helium-filled drives which stick an extra platter in the standard 3.5-inch disk enclosure, giving it a capacity advantage over Seagate. ®