Seagate Q4 a mixed bag as profit dips

Storage player Seagate posted earnings of $320 million, down from $348 million in the same period last year.
Written by Natalie Gagliordi, Contributor

Seagate delivered a mixed bag for its fourth quarter earnings, as the hard-disk drive storage provider barely met revenue estimates.

The company reported fourth quarter earnings of $320 million, or $0.95 a share, on revenue of $3.3 billion. That's down from $348 million in the same period last year.

Adjusted earnings for the quarter were $370 million or $1.10 per share.

Wall Street was expecting Seagate to report non-GAAP earnings of $1.09 a share on revenue of $3.33 billion.

Seagate CEO Steve Luczo reflected on quarter and the fiscal year in prepared remarks:

"The shifting information technology market dynamics are disrupting the traditional storage industry in meaningful ways and continue to create more opportunities for Seagate. As we plan for our next fiscal year, we remain focused on investing in our storage technology product portfolio to deliver high quality storage products and solutions for our customers, as well as continuing to create long-term value for our shareholders."

Seagate has made efforts in recent months to boost its enterprise-class PCIe flash offerings with the acquisition of Avago Technologies for $450 million. The company is also gaining ground in the surveillance and video analytics market, as well as with its cloud-based applications.

Luczo said Seagate will continue strategic investments for its technology portfolio to deliver higher capacity and power efficient storage solutions.

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