The Wall Street Journal-20080118-Earnings Digest Brief -- Technology- Seagate Technology
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Earnings Digest Brief -- Technology: Seagate Technology
Seagate Technology said second-quarter profit rose sharply amid strong demand for its data-storage devices. However, shares of the Scotts Valley, Calif., disk-drive maker were down 55 cents, or 2.6%, to $21.05 in after-hours trading after it issued a revenue outlook that was on the low end of Wall Street's estimates. The shares dropped more than 6% in the regular session amid a general sell-off of technology shares. Seagate has benefited from strong demand for laptop computers, video games and digital video recorders. Bill Watkins, Seagate's chief executive officer, said the company achieved "record shipments" during the quarter ended Dec. 28, so much so that it experiences some "capacity constraints" in the period. For the current quarter, Seagate expects revenue of $3.2 billion to $3.3 billion. Analysts surveyed by Thomson Financial forecast $3.3 billion. Earnings for the quarter are expected to come in between 62 cents and 66 cents per share, excluding charges. Analysts were expecting 62 cents.
