Seagate Technology PLC (NASDAQ: STX) has somehow managed to surprise the technology investing community with news that the revenue picture might not have been as bad as what Wall Street was pricing in from the Thailand floods and other supply constraints. Shares of Western Digital Corporation (NYSE: WDC) are indicated higher with it. More important is that the company continues to believe that during calendar 2012 unit demand will exceed supply.
The company shipped approximately 47 million disk drives and sees revenues at $3.1 to $3.2 billion and expects gross margin as a percent of revenue to be at least 30.5% before the impact of the Samsung HDD acquisition charges. Thomson Reuters has estimates of $2.81 billion for the quarter.
For the next quarter, Seagate sees revenue of $4.2 to $4.5 billion and sees gross margin as a percent of revenue of at least 33%. Thomson Reuters has estimates of $3.62 billion for the quarter.
Cash and cash equivalents at the end of the December quarter came to more than $2.1 billion that was “inclusive of substantial outflows of approximately $1.2 billion during the quarter for matured debt and cash consideration for the Samsung transaction.”
Seagate shares rose 2.4% today and shares are up another 7.5% at $18.09 against a 52-week range of $9.05 to $18.60. Western Digital Corporation (NYSE: WDC) closed up 1% at $31.30 today and the shares are indicated up around $32.20 in the after-hours session.
JON C. OGG
“The Next NVIDIA” Could Change Your Life
NVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.
But if you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email below
By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you.
You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use.