DUBAI: Seagate Technology, a worldwide leader in storage solutions, has reported better-than-expected quarterly financial results as the company anticipates demand and pricing in the business to rise in the second half of 2013. Announcing the latest financial results for first quarter, Seagate confirmed revenues of $3.5 billion, higher than what many analysts’ predicted for the quarter.
“Seagate’s operational results this quarter again reflect strong execution,” said Steve Luczo, Seagate’s chairman, president and chief executive officer.
“The continued advancement of cloud, mobile and open source computing are trends that are shifting data volumes toward personal and corporate cloud environments, creating tremendous opportunities for Seagate’s leading storage technology portfolio. Looking ahead, our top priorities are focused on the efficiency of our operations, extending our leadership in storage technology innovation and returning value to shareholders,” Steve Luczo added.
Earlier this spring, Seagate announced that it was the world’s first hard disk drive manufacturer to ship two billion hard disk drives globally-a staggering number fueled by the explosive demand for storage from mobile applications, cloud infrastructures, social media and business applications.
According to a recent report by analyst group Gartner2, the Middle East’s expenditure on information technology is projected to hit over $192 billion in 2013, registering a 5.5 per cent increase from 2012, with the segment being driven by key markets such as security and storage management.
In its latest quarterly report, Seagate noted gross margin of 26.9 per cent, net income of $416 million and diluted earnings per share of $1.13.
On a non-GAAP basis, which excludes the net impact of certain items, Seagate reported gross margin of 27.6 per cent, net income of $464 million and diluted earnings per share of $1.26. Seagate is a world leader in hard disk drives and storage solutions.