The company said it expects to report record sales of about $4.5 billion for the second calendar quarter (fiscal Q4) of this year, based on shipments of 66 million drives and aggregate storage volume of 45 exabytes.
In comparison, Seagate shipped reported $4.4 billion revenue for the previous quarter (calendar Q1 2012), 61 million sold drives and 42 exabytes of storage. Compared to last year, Seagate shipped 52 million drives and 33 exabytes in the second calendar quarter of 2011 (prior to the Thailand flood, which happened in October 2011).
On a year-to-year basis, Seagate says it has seen a 21 percent increase in HDD shipments for the second quarter. Revenue climbed in the same timeframe by 34 percent and non-GAAP gross margin almost doubled from 18.8 percent to 33.6 percent
Still, Seagate did not reach its original forecast. "The June quarter’s shortfall was due primarily to two factors. First, we did not achieve our planned market share growth as we reduced shipments in response to the industry’s faster than expected recovery from their supply chain disruption," said CEO Steve Luczo in a statement. "Second, we experienced an isolated supplier quality issue that affected one of our enterprise product lines. This product issue impacted enterprise product unit shipments by approximately 1.5 million units and drove our non-GAAP gross margin below our targeted plan. While this disruption to our business was disappointing, we acted quickly and conservatively by suspending shipments of the affected products. We have resolved the issue and have resumed fulfilling our supply commitments to customers."
Seagate previously expected revenues of about $5 billion and non-GAAP gross margin of at least 34.5 percent.
I have been buying SSDs for myself and customers since. They love them.
Another example of how unemployment is still sky high because companies are saying they can't afford to hire people. Yet they report record profits, which I think is the definition of being "able to hire."
And to the people saying theres no regulation. Try starting a bussiness. Once you see the thousands of pages of stupid regulations it will make you want to throw up. Congress and all their hundreds of organizations pass hundreds of laws daily regulating more. Enough to fill 3 semi trucks of paper a year.
Democrating Senator George Mcgovern was famously quoted when he tried to start a business in Connecticut as saying If I had known how hard it was to start a business due to the amount of regulations I would have worked to get rid of them while in office instead of making them.
Just because you hear someone took one page of regulations off the book at some point doesn't mean that congress isn't putting out several hundred pages a day to make up for it.
At this point you wont see Seagate's prices drop until WD's prices drop. It actually makes a lot of sense for us as consumers to endure it this way. The alternative is that Seagate drops it prices to where they probably should be, and WD dies as a company from being unable to match Seagate's price. Don't pay too much attention to Seagate's numbers. Look at the overall total quarterly shipments of HDDs, and the average price. But, no one is probably going to listen to me, or do the investigating themselves, so I'll probably get down voted to oblivion for "defending" Seagate ad WD. Oh well.