Seagate stems quarterly loss as FY16 profits fall by 86 percent

Storage giant Seagate returned to profit in the fourth quarter, only to see its full-year earnings tank in comparison to last year.

Seagate fy16 shipments
(Image: Seagate)

Seagate has banked $248 million in net income for the 2016 financial year on revenue of $11.2 billion, which represents a significant fall in profit from the $1.7 billion of net income on revenue of $13.7 billion the company saw in 2015.

For its fourth quarter, Seagate had revenue of $2.6 billion and net income of $70 million compared to its Q4 2015 numbers of $2.9 billion in revenue and $138 million of net income.

In its previous quarter, the company had a $21 million net loss, while for its first two quarters of the year it had net income of $34 million and $165 million.

Seagate shipped 61.7 exabytes of storage during the quarter contained within 37 million drives. These numbers have allowed the company to tout an increasing average capacity per drive, but in absolute totals, Seagate has shipped its lowest quarterly number of drives in two years. For the full year, it shipped 233 exabytes of storage.

In June, the company said it would cut 3 percent of its workforce at a cost of $62 million to its fourth-quarter numbers, but expects to save about $100 million a year going forward. In its earnings, the company said it has a headcount of 45,487.

Last month, Seagate rolled out a 10TB consumer hard drive for desktop users.