Tuesday April 13 4:55 PM ET
Seagate Reports Q3 Profit Above Forecasts
SCOTTS VALLEY, Calif. (Reuters) - Seagate Technology Inc. (NYSE:SEG - news) Tuesday reported a third quarter profit that was above most forecasts
and marked a strong rebound from the company's hefty losses a year ago.
Seagate, the world's largest computer disk drive maker, said it earned $82 million, or 34 cents per share, in the third quarter, compared with a loss in the same
period a year ago of $129 million, or 53 cents per share. Earnings in the latest quarter were reduced by a $60 million restructuring charge.
Excluding that charge, Seagate said its third quarter earnings were 49 cents per share, above the estimates of most analysts who had predicted a 46 cents per
share profit, according to the research firm First Call Corp.
The company said revenues grew 7.7 percent to $1.81 billion from $1.68 billion a year ago.
Seagate had no immediate comment on the strong rebound. A year ago, the company's results suffered from fierce competition, overproduction and sagging
prices.
Seagate also said Tuesday that it is changing the way it does business in North America to delay revenue recognition until the product is sold by distributors.
Seagate shares closed up 44 cents Tuesday at $26.69 on the New York Stock Exchange. |
