Storage player Seagate Technology's first quarter fell short of expectations due to an uncertain economy and technology transitions.
The company reported first quarter earnings of $427 million, or $1.16 a share, on revenue of $3.49 billion, down from $3.73 billion in the same quarter a year ago. Non-GAAP earnings were $1.29 a share.
Wall Street was expecting earnings of $1.30 a share for the first quarter on revenue of $3.56 billion.
In a statement, Seagate CEO Steve Luczo said the company is executing well, but there were "the challenges of technology transitions and macro uncertainty." Luczo added that Seagate will continue to invest in cloud, mobile and open storage as demand continues to grow.
The company said that first quarter inventory was $871 million, up from $854 million as of June 28. In the quarter, Seagate acquired Samsung's HDD business and LaCie.
Seagate's primary rival, Western Digital, handily topped earnings expectations with first quarter non-GAAP earnings of $2.12 a sahre on revenue of $3.8 billion.