Seagate: Fiscal 1Q11 Financial Results

(in US$ millions)	1Q10	1Q11
Revenues	2,663	2,697
*Growth*		1%
Net income (loss)	179	149

Seagate Technology plc reported financial results for the quarter ended October 1, 2010.

The company shipped 49.2 million disk drives and on a GAAP basis reported revenue of $2.7 billion, gross margin of 20.4%, net income of $149 million and diluted earnings per share of $0.31.

On a non-GAAP basis, which excludes the impact of purchased intangibles amortization, restructuring and costs related to the redemption of the Maxtor convertible notes, Seagate reported net income of $180 million and diluted earnings per share of $0.37.

Comments

It was the same for the last three quarters: WD shipped more drives, 50.7 million vs. 49.2 million, and Seagate recorded higher revenues, $2.7 billion vs. $2.4 billion.

Seagate declines to give outlook for the next three-month period.

Abstracts of the earnings call transcript

Steve Luczo, chairman, president and CEO:
"We did experience some additional weakness in the consumer markets particularly in the United States and in Europe early in the quarter. Primarily as a result of this weakness, the total available market for the quarter was approximately 165 million units, which was the low end of our expectations at the beginning of the quarter. We did however see some early signs that consumer activity is beginning to improve in early September. Additionally, industry market share remains substantially unchanged. However, pricing remained aggressive across all of our product lines, customers, and geographies."