Edamo et al.
Don't want to burst your bubble since I am a strong Dell bull, but I believe that SEG is somewhat isolated from a pc slowdown (seasonal or whatever) and may not be a good indicator for the pc market, see below clip from wall st. journal. I would like to be optimistic but do not wish to get caught blindsighted again w/dell like last qtr. At least it seems that the server biz. is doing fine...
TCI
Seagate Technology Inc. reported pro forma earnings late Tuesday that
topped analysts' estimates. For the fiscal third quarter ended April 2, the Scotts Valley, Calif., disk-drive maker reported net income of $82 million, or 34 cents a diluted share, reversing a net loss of $129 million, or 53 cents a share, in the year-ago period.
The latest period included a $60 million restructuring charge; excluding the charge, pro forma net income was 49 cents a share. That
topped the consensus estimate of analysts surveyed by First Call for net income of 46 cents a share.
Revenue, meanwhile, climbed 7.7% to $1.81 billion from $1.68 billion in the year-ago quarter.
The disk-drive industry was roiled last year as an industrywide glut hurt prices. But the excess inventory has been coming down steadily for three quarters, analysts said. Seagate was somewhat shielded from the weakness in the PC business because of healthy demand for disk drives used in large computer servers, said James Poyner, an analyst at CIBC Oppenheimer Corp. "The server market held up OK," he said.
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