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Seagate does better than expected

by on25 January 2017

Cloud based money

Hard drive maker Seagate has done better than the cocaine nose jobs of Wall Street predicted this quarter.

Apparently Seagate’s bottom line was augmented by strong demand for its cloud-based storage products.

Seagate has been focusing on cloud-based products as businesses cut spending on traditional storage systems.

Chief Executive Officer Steve Luczo said: "From a macro perspective, we remain cautiously optimistic about the current macroeconomic environment and IT spending trends," on a post-earnings conference call.

The company forecast third quarter revenue of about $2.7 billion, above estimates of $2.61 billion.

Seagate said it expects to achieve revenue growth this year. This is a bit of a turnaround from July where the outfit slashed 6,500 jobs, or 14 percent of its workforce, by the end of fiscal 2017, as part of a major restructuring.

The company's net income rose to $297 million in the second quarter ended December 30, from $165 million.

Its rival Western Digital will report its second-quarter results today.

Last modified on 25 January 2017
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