Seagate technology updates fiscal third quarter business outlook
March 8th, 2005 Leave a comment Visited 17 times, 1 so far today
Seagate technology updates fiscal third quarter business outlook
Seagate Technology (NYSE: STX) today released an update to its business outlook for the company’s third fiscal quarter of 2005, ending April 1, 2005.
The continued successful adoption and ramp of Seagate’s new product lines combined with increased demand for the company’s consumer electronics and enterprise products have driven improvements in the company’s financial performance above the guidance the company provided on January 18, 2005. Assuming historically normal seasonal demand for the month of March, the company expects the March quarter’s revenue to be approximately $1.87 billion, gross margin to be at least 23% and diluted earnings per share to be at least $0.36.
“Industry demand this quarter clearly illustrates that disc-based storage has emerged as an enabling platform for the electronics industry beyond general computing,” said Bill Watkins, Seagate president and CEO. “With a product portfolio that addresses 97% of the total available market for disc drives, Seagate is benefiting from both its leadership in core markets and the dramatic proliferation of disc-based consumer electronics applications.”
Seagate believes the total available market (TAM) for enterprise, desktop and mobile computing disc drives will be in line with the company’s expectations on January 18. The company is seeing less seasonality in the demand for consumer electronics disc drives than it anticipated. As a result, the TAM for consumer electronics disc drives is now expected to increase from the 11.5 million units it disclosed on January 18 to equal or slightly higher than the 13.5 million units shipped in the December quarter.
With the favorable impact of new products offsetting price declines, Seagate expects the average selling price (ASP), on a blended basis for all of its products, for the March quarter to increase modestly over the comparable December quarter ASP.
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