Seagate reported better-than-expected first quarter earnings as the storage company said demand from cloud providers was strong.
The company reported fiscal first quarter earnings of $167 million, or 55 cents a share, on revenue of $2.8 billion, down from $2.9 billion a year ago. Non-GAAP earnings were 99 cents a share, 10 cents ahead of Wall Street estimates.
In many ways, Seagate is a tale of two storage units. A consumer business that rides along with the PC market and is anemic, and an enterprise half that is doing well.
Seagate CEO Steve Luczo said Seagate was seeing strong cloud storage demand with record Exabyte shipments. "As the demand for HDD storage continues to benefit from the shift to data driven cloud based architectures, Seagate is in a strong position," said Luczo.
The company also approved a dividend of 63 cents a share payable January 4.