Nearline disk drive demand dip dropkicks Seagate: How deep is the trough, how deep is the trough?

www.theregister.co.uk | 2/5/2019 | Staff
bungienet (Posted by) Level 3
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Seagate was caught out by an unexpectedly deep drop in disk drive demand and saw its revenues fall 7 per cent. Along with the rest of the tech world, it talked about a recovery mid-year, and promised world+dog at least one more lousy quarter.

Reported revenues (PDF) for its second quarter of fiscal '19, ended 28 December, were $2.7bn, down 6.8 per cent on last year's $2.9bn. The company said cost cuts helped profits rise from $159m last year to $384m.

Cash - Flow - Operations - Year - Quarter

Its cash flow from operations was $288m, down from $850m a year ago, and it closed out the quarter with cash and cash equivalents of $1.4bn, down from $2.6bn a year ago.

The Cupertino firm's revenue dive – at least percentage-wise – was less than that of Western Digital, which saw revenues slump 20 per cent. It was hit by demand drops in both disks and SSDs. Seagate's flash business is a relative drop in the ocean in comparison, but a tad healthier.

Business - Enterprise - Systems - Stuff - CFO

That business was grouped with enterprise systems and other stuff, which altogether netted $225m. CFO Gianluca Romano said revenues for this "non-hard disk" group were "up 8 per cent year-over-year – mainly driven by higher SSD revenue".

The company shipped 87.4EB of capacity, down from the 87.5EB shipped a year ago, and...
(Excerpt) Read more at: www.theregister.co.uk
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