Seagate Reports Slight Profit Gain Despite Personal Storage Turmoil
UPDATED: Seagate on Tuesday reported net profit of $205 million for its recent quarter. But disappointing performance in its personal storage business kept revenue flat compared with the year-ago quarter.Storage manufacturer Seagate Technology LLC on Tuesday said it had shipped a record number of hard drives in its second fiscal quarter and that net income had climbed slightly. Still, its revenue was flat year-to-year after disappointing sales in its personal storage business. A combination of price erosion and quality issues dragged Seagates fourth-quarter sales well below the $1.8 billion to $1.84 billion range company executives forecast at the end of Seagates first fiscal quarter in October. Instead, the company reported revenue of $1.76 billion and net income of $205 million for its second fiscal quarter ended Jan. 2, 2004. Revenue in the year-ago quarter was $1.73 billion, with a net income of $198 million.
While the companys expectations were met in its enterprise and mobile storage groups, problems cropped up for its personal-storage business. It experienced a 1.4 million-unit shortfall in its sales projections for personal storage drives. Seagate shipped a total of 21.7 million disk drives for the quarter: 16.1 million desktop drives, 1.90 million mobile drives and 2.74 million enterprise drives, with the remainder going into consumer electronics products.