Seagate suffers quarterly loss with drop in demand for storage products
Seagate suffers quarterly loss with drop in demand for storage products

US global storage giant Seagate has suffered a loss in the latest quarter on the back of lessening demand for its storage products.

Steve Luczo, Seagate’s chairman and chief executive officer said on Monday that results for the third quarter ending 1 April fell short of the company’s expectations as a result of several near-term demand factors.

But, Luczo said despite the challenges faced by Seagate, the company believed it has the “product portfolio, technology roadmap and operational leverage to ensure we are well-positioned for long-term success”.

“Accordingly, we are aggressively working to position Seagate to respond to new demand levels and are committed to ongoing financial discipline.”

On Monday, Seagate reported revenue of approximately $2.6 billion for the third-quarter, gross margin of 20.2%, and a net loss of $21 million and diluted loss per share of $0.07.

Despite the quarterly loss, Luczo said that while the short-term dynamics of the storage industry are challenging, Seagate continues to see “significant and growing Exabyte demand, particularly as enterprise applications shift to cloud environments”.

“As we look forward, our strategic focus is unchanged — we are broadening our storage portfolio to meet the needs of our growing global customer base, building upon our strong competitive position and optimising our business for continued financial performance.

“These focus areas will enable us to build lasting value for shareholders.”

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