Seagate 2Q earns, revenue drop worse than forecast
Seagate Technology 2nd-quarter drop in earnings, revenue worse than forecast
CUPERTINO, Calif. (AP) -- Hard-drive maker Seagate Technology PLC on Monday reported a 13 percent drop in second-quarter net income, worse than expected, as a decline in revenue was also below forecasts.
Net income in the three months through Dec. 27 fell to $428 million, or $1.24 per share, down from $492 million, $1.30 per share, a year earlier.
Excluding certain items, like amortization and restructuring charges, earnings came to $1.32, below the $1.39 per share expected by analysts polled by FactSet.
Revenue dropped 4 percent to $3.53 billion, also below the $3.56 billion expected.
CEO Steve Luczo said in a statement the company continues to invest in products and manufacturing capabilities that take advantage of the growth in cloud storage and the use of mobile devices.
Seagate shares fell $3.83, or 6.6 percent, to $54.22 in after-hours trading following the release of results. Shares had already fallen 52 cents to $58.05 in the regular session.