Seagate forecasts revenue below estimates
(Reuters) - Seagate Technology Plc (STX.O) reported lower-than-expected quarterly results and forecast second-quarter revenue below market estimates as falling personal computer sales dent demand for hard disk drives.
Seagate shares fell 5 percent in extended trading after closing at $49.85 on the Nasdaq.
The company said it expects revenue of $3.5-$3.6 billion for the second quarter, below the average analyst estimate of $3.64 billion.
"The challenges of technology transitions and macro uncertainty are driving us to manage our business conservatively," Chief Executive Steve Luczo said in a statement.
The company expects the business environment to improve in the second half of 2015, Chief Financial Officer Pat O'Malley told Reuters.
As PC sales decline, Seagate and Western Digital Corp (WDC.O) - which dominate the hard-drive industry - are focusing on sales of higher-margin storage products to fast-growing cloud storage firms.
Seagate's net income fell to $427 million, or $1.16 per share, in the quarter ended September 27, from $582 million, or $1.42 per share, a year earlier.
Excluding items, the company earned $1.29 per share.
Revenue fell 6 percent to $3.49 billion.
Analysts had expected a profit of $1.30 per share on sales of $3.56 billion.
Western Digital last week reported a better-than-expected quarterly profit, helped by stronger sales of higher-margin products to businesses and consumers.
Seagate increased its quarterly cash dividend by 5 cents to 43 cents per share payable on November 26.
(Reporting by Soham Chatterjee and Chandni Doulatramani in Bangalore; Editing by Maju Samuel)