SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Disk Drive Sector Discussion Forum
WDC 174.21+6.9%Nov 10 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Tom Simpson who wrote (8128)3/22/2000 9:48:00 AM
From: Robert Douglas  Read Replies (1) of 9256
 
Tom,

Thanks for your analysis. You always come up with some great stuff and I don't mean to pick on one comment from an interesting analysis.

The interesting thing to me is that Seagate is losing more money operationally than the other three combined,

Don't forget that this was one quarter and Seagate had charges in that quarter of $284 million from the acquisition of the rest of Seagate Software and $39 million from the Rodime legal settlement.

I think that rather than looking at net margins, your initial look at gross margins is more telling. Seagate has really been the most profitable in that regard. The question of, "how they do it," is certainly big in my mind given their severe density handicap (something I can relate to personally).

Also, I think that it is more remarkable that they have the highest gross margins during a time period when all the "virtual" makers are being subsidized by losses at the component suppliers.

-Robert
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News