Seagate Revenues Surge On PC And Cloud Storage Demand
Despite the many doom and gloom predictions in the PC market, worldwide system shipments during the third quarter didn't fall as much as expected (only minus 1.7 percent, according to IDC). Partially as a result, hard drive maker Seagate Technology performed better than expected during the company's first quarter of its fiscal year 2015 ended October 3, 2014.
How well? Seagate reported a profit of $381 million, or $1.13 per share, on revenue of $3.8 billion for the quarter. On average, analysts weren't expecting Seagate's profit to be quite as high, though they probably didn't take into account that the PC market is doing better than expected, along with continued upgrades since Microsoft yanked support for Windows XP earlier this year.
"We achieved strong financial results in the first fiscal quarter, driven by consistent execution and better-than-anticipated market demand for our PC and cloud storage products," said Steve Luczo, Seagate’s chairman and chief executive officer. "We continue to improve our position in the evolving storage market by leveraging and investing in our core storage technology and expanding our product portfolio with cloud systems and solutions and integrated flash technology."
Seagate's also been winning over businesses by pushing the capacity limits of today's mechanical based hard disk drives (HDDs). The company was the first to ship an 8 terabyte HDD earlier this summer, right around the same time it came out with five new NAS boxes. Seagate's also been benefiting from its acquisition of LSI's flash business, which it picked up for $450 million back in May.
How well? Seagate reported a profit of $381 million, or $1.13 per share, on revenue of $3.8 billion for the quarter. On average, analysts weren't expecting Seagate's profit to be quite as high, though they probably didn't take into account that the PC market is doing better than expected, along with continued upgrades since Microsoft yanked support for Windows XP earlier this year.
"We achieved strong financial results in the first fiscal quarter, driven by consistent execution and better-than-anticipated market demand for our PC and cloud storage products," said Steve Luczo, Seagate’s chairman and chief executive officer. "We continue to improve our position in the evolving storage market by leveraging and investing in our core storage technology and expanding our product portfolio with cloud systems and solutions and integrated flash technology."
Seagate's also been winning over businesses by pushing the capacity limits of today's mechanical based hard disk drives (HDDs). The company was the first to ship an 8 terabyte HDD earlier this summer, right around the same time it came out with five new NAS boxes. Seagate's also been benefiting from its acquisition of LSI's flash business, which it picked up for $450 million back in May.
