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.

Seagate, which competes with Western Digital (Charts) among other companies, plans to issue its quarterly results after the market closes on April 17.

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.