Seagate lowers revenue estimate due to dip in orders from enterprise customers

Seagate Technology said it expects revenue of $2.1 billion plus or minus $100 million in its first-quarter, compared with a midpoint of $2.5 billion for its previous forecast range.
Seagate storage for Internet cosSeagate cites an economic slowdown in certain Asian markets and declining orders from enterprise customers for its data storage products for lowering the estimate.

“Since our earnings call in mid-July, weaker economic trends in certain Asian regions have amplified customer inventory corrections and supply chain disruptions,” Seagate CEO Dave Mosley said in a news statement.

The California-based company will also be reducing output, lowering expenses and moderating its fiscal 2023 capital investments.

Seagate earlier reported revenue of $11.66 billion in its fiscal year ended July 1, 2022 against $10.68 billion in the previous fiscal. Seagate posted fourth quarter revenue of $2.628 billion as compared with $3.01 billion in the same quarter previous year.

Seagate earlier said revenue from mass capacity storage markets increased 24 percent year-over-year and represented 74 percent of annual HDD revenue.