Seagate to miss forecasts
Disk drive maker blames weak demand, pricing battle; shares down 4% after hours.
NEW YORK (CNNMoney.com) -- Seagate Technology, the disk drive manufacturer, warned Monday that revenue and profit margins in its most recent quarter would fall short of prior expectations.
The company's shares fell $1.01, or 4.3 percent, to $22.45 in after-hours trading after finishing 19 cents higher during regular hours.
In a statement, Seagate said revenue for the fiscal third quarter ended March 30 would be about $2.8 billion, compared with prior forecasts of $2.9 billion to $3 billion. It said gross margins did not achieve the company's expectations, although the statement gave no specific figures.
Seagate (Charts) blamed weaker-than-expected demand and price competition for the weaker showing. It also said it doesn't believe it has lost market share from the previous quarter and that inventories remain at under five weeks.