Seagate’s Revenues, Profits and Shipments Drop on Slow PC Sales

From X-bit Labs: Seagate Technology on Wednesday reported financial results for the third quarter of fiscal 2013, which ended March 29, 2013. While Seagate’s arch-rival Western Digital Corp. appeared to be immune to PC shipments drop in calendar Q1 2013, Seagate suffered decreases in sales volumes as well as revenues and profits.

During the fiscal third quarter, the company reported revenue of approximately $3.5 billion, gross margin of 26.9%, net income of $416 million and diluted earnings per share of $1.13. The firm shipped 55.7 million hard disk drives. Average selling price of Seagate’s hard drive in Q3 FY2013 was $63, whereas average capacity was 842GB. During the same period a year ago Seagate earned $4.4 billion in revenue, $1.1 billion in net income and reported gross margin of 37%. The firm shipped 60.7 million hard drives at $73 ASP.

Client compute shipments in Q3 FY2013 quarter decreased 7% sequentially to 36.6 million disk drives (down 16.5% year over year), including 17.0 million mobile hard drives and 19.6 million desktop hard drives.

Enterprise class shipments in the quarter increased 3% sequentially to 7.5 million. These results include 3.6 million hard drives for mission critical applications and 3.9 million hard drives for nearline storage applications.

Non-compute shipments in the March quarter totaled 11.6 million, roughly flat sequentially, including 5.8 million consumer electronics (CE) hard drives and 5.8 million Seagate branded hard drives.

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