Seagate Technology, the leading data-storage provider, anticipates first-quarter revenue of $2.10 billion, driven by increased demand for memory chips from personal computing and data center clients.
The Dublin, Ireland-based computer hard drive maker has seen a recovery in the memory devices market, rebounding from a downturn last year when PC makers reduced chip orders due to weak sales, Reuters news report said.
The development of AI-powered PCs and hopes for an economic upturn are likely to further boost the data-storage solution business. “In fiscal 2025, we are remaining focused on driving profitability and maintaining supply discipline while continuing to execute our mass capacity product roadmap,” said Seagate Technology CEO Dave Mosley.
The market for PCs is expected to recover from a slowdown in orders following the pandemic-driven buying spree. This optimism is supported by a 3 percent rise in global shipments of personal computers in the second quarter of 2024, according to IDC.
PC shipments reached 64.9 million units in the three months ended June, marking a second consecutive quarter of growth after two years of decline. This growth has sparked optimism for investments in data centers that utilize Seagate’s memory chips.
Seagate Technology forecast first-quarter adjusted profit of $1.40 per share, with a margin of 20 cents either way, compared with estimates of $1.16. The company reported revenue of $1.89 billion for the fourth quarter ended June 28, posting adjusted earnings of $1.05 per share.
Breaking down Seagate’s revenue, the company generated $1,385 million from HDD, $984 million from Mass Capacity, $401 million from Legacy, and $218 million from Systems, SSD & Other. By channel, Seagate’s revenue was distributed as 73 percent from OEM, 14 percent from Distributors, and 13 percent from Retail.
