Seagate: Fiscal 3Q11 Financial Results

in US$ millions)	3Q10	3Q11	9 mo. 10	9 mo. 11
Revenues	3,049	2,695	8,738	8,112
*Growth*		-22%		*-22%*
Net income (loss)	518	93	1,230	392

Seagate Technology plc reported financial results for the quarter ended April 1, 2011.

The company shipped 49 million disk drives and reported revenue of $2.7 billion, gross margin of 19.1%, net income of $93 million and diluted earnings per share of $0.21. On a non-GAAP basis, which excludes the net impact of loss on redemption of debt, purchased intangibles amortization, restructuring and tax adjustments related to prior fiscal years, Seagate reported net income of $113 million and diluted earnings per share of $0.25 for the quarter ended April 1, 2011.

For the nine months ended April 1, 2011, the company reported revenue of $8.1 billion, gross margin of 19.7%, net income of $392 million and diluted earnings per share of $0.83. On a non-GAAP basis, which excludes the net impact of loss on redemption of debt, purchased intangibles amortization, restructuring and tax adjustments related to prior fiscal years, Seagate reported net income of $452 million and diluted earnings per share of $0.95.

Comments

Here are some more information
given by Seagate on its 3FQ11:

The Total Available Market (TAM) for hard disk drives in the March quarter was approximately 160 million units. Demand for disk drives strengthened as the March quarter ended in what is believed to be a reaction to possible supply chain disruptions stemming from the earthquake and tsunami in Japan.

Units Shipped and Gross Margin
Seagate shipped 48.7 million units, essentially flat sequentially and down 3% compared to the year-ago quarter. Non-GAAP gross margin as a percent of revenue was 19.2%.

Enterprise Market
The TAM for enterprise class disk drives, which includes disk drives for both mission critical and business critical applications, was approximately 13.8 million units, up 10% over the year-ago quarter. Mission critical products continue to represent the bulk of the TAM at just over 8 million units. Seagate shipped 5.1 million drives for mission critical server and storage applications and 2.4 million drives for business critical applications, representing flat and a 29% increase year-over-year, respectively.

Client Compute Market
The TAM for client compute disk drives, which includes disk drives designed for use in mobile and desktop computers, was approximately 115 million units, down 7% year-over-year. The mobile TAM was approximately 64 million units, and the desktop TAM was approximately 51 million units. Seagate shipped 32 million client compute disk drives in the March quarter. Mobile drives accounted for 11.7 million units, down 12% year-over-year and desktop drives for 20.3 million units, down 6% year-over-year. Inventory of Seagate 3.5-inch ATA (desktop) disk drives in the distribution channel at the end of the quarter was below Seagate’s targeted range of 4-6 weeks.

Non-Compute Market
The non-compute market consists of disk drives specifically configured for consumer electronic (CE) applications plus Seagate branded products sold at retail. The March quarter TAM for the non-compute market was approximately 31 million disk drives, comprised of 17 million CE drives and 14 million for branded products. In the March quarter, Seagate shipped 5.2 million CE disk drives, a decrease of 5% year-over-year and 4.1 million Seagate branded storage products, up 41% year-over-year. Branded growth was driven by a stronger market in APAC and market share gains in the U.S., combined with launch of GoFlex for Mac and ongoing customer acceptance of GoFlex products in America.

Editor's notes:

The March 2001 quarter was not a good one for the industry and we are waiting for similar relatively bad results for WD.

Current period is a tremendous one for consolidation, not for internal growth.

No one word on two Seagate's activities, SSDs and i365, apparently continuing to be negligible for the company