Seagate Ships Record Amount of Hard Drives as Revenues and Profits Set Records

From X-bit Labs: Seagate Technology on Tuesday reaffirmed its position as the world's largest maker of hard disk drives (HDDs). The company said that during its third quarter of fiscal 2012 (ended on March 30, 2012) it shipped record number of hard disk drives - 61 million - and reported record revenue of $4.4 billion.

Seagate reported revenue of $4.4 billion, gross margin of 37%, net income of $1.1 billion (up from $93 million in Q3 FY2011) and diluted earnings per share of $2.48. The company increased its HDD unit shipments by 29% over last quarter, supplying 61 million hard drives, which equates to approximately 42 exabytes. Samsung-branded products represented approximately 13% of Seagate shipments, or 7.93 million, in Q3 FY2012.

Record shipments, revenues and profits of Seagate were conditioned by several factors, including shortages of hard drives amid strong demand that exceeds supply after severe flooding in Thailand in October, 2011. Nonetheless, the company itself did a lot to boost output of own-brand drives from 49 million in Q3 FY2011 to 53.07 million in Q3 FY2012.

"Seagate delivered strong performance this quarter by concentrating our efforts toward supporting our customers as the recovery of the hard drive industry continues to progress. Importantly, during this challenging period, Seagate has successfully transitioned its portfolio to industry-leading products across all markets thereby positioning the company for continued leadership through operational excellence," said Steve Luczo, chairman, president and chief executive officer of Seagate.

View: Article @ Source Site