Seagate expects second-quarter revenue above its forecast
(Reuters) - Hard drive maker Seagate Technology Plc said it expects to report higher second-quarter revenue than its previous forecast, sending its shares up 9 percent.
Seagate, which been struggling with weak PC sales like rival Western Digital Corp, shipped nearly 58 million hard drives in the quarter ended December 28, in-line with first-quarter shipments.
Analysts expected Seagate and Western Digital, who together control over 90 percent of the market, to ship lower number of drives as the industry battles a slower Windows 8 adoption and falling investment in technology by businesses.
Seagate said on Tuesday that it now expects at least $3.6 billion in revenue, higher than its previous forecast of about $3.5 billion.
Analysts were expecting $3.53 billion in revenue, according to Thomson Reuters I/B/E/S.
Cupertino, California based-Seagate estimated second-quarter gross margin of more than 27 percent. The company expected second-quarter gross margin at the low-end of its long-term target, or about 27 percent, on falling average selling price.
The company's shares were up 2 percent at $32.12 in extended trade, after closing at $31.39 on the Nasdaq on Tuesday. They touched a high of $34.50.
(Reporting by Himank Sharma in Bangalore; Editing by Sriraj Kalluvila)