Story image

Seagate expects $2.9 billion revenue from cloud capacity and HDD shipments

14 Oct 2016

Seagate has reported its preliminary financials for its first quarter of 2017, expecting revenue generation of approximately $2.8 billion and a GAAP/non-GAAP gross margin of 29%.

The company's GAAP expenses are expected to be around $580 million, while non-GAAP expenses are expected to be $470 million.

These numbers are slightly higher than last year, and the company attributes this to higher variable compensation due to better financial performance. Seagate also states that it has $1.5 billion in cash and cash equivalents.

“This quarter we returned to our long-term targeted margin profitability and operating income ranges and generated significant cash flow from operations,” “Our strong results reflect persistent growth and demand for cloud-based storage exabyte capacity and our new high capacity HDD products are gaining traction in the marketplace," says Steve Luczo, Seagate chairman and CEO.

At the same time, we are refreshing our full HDD product portfolio with cost optimised products and our organisation continues to execute our company-wide restructuring and cost containment activities," Luczo continues.

The company believes the revenue generation will come from 67 exabyte shipments of its HDDs. Shipments are expected to reach 39 million, while each HDD will have an average capacity of 1.7 terabytes.

“With the ever-growing demand for HDD storage capacity and our focus on providing the most comprehensive product portfolio with leading technology, Seagate should continue to deliver solid financial performance and strong shareholder return for the years to come," Luczo concludes.

The official financial results are due to be released on October 19.

HPE launches 'right mix' hybrid cloud assessment tool
HPE has launched an ‘industry-first assessment software’ to help businesses work out the right mix of hybrid cloud for their needs.
IDC: Innovative wearable use cases drive double-digit growth
Wristbands are set to lose their dominance as hearables and industrial applications keep the wearables market moving forward.
Turtle Beach buys ROCCAT, bringing more 'victories to gamers'
Germany-based Roccat already has a significant presence in Europe and Asia, which means Turtle Beach will likely take advantage of that growth. Expect to see more Turtle Beach products on the shelves. 
NVIDIA introduces a new breed of high-performance workstations
“Data science is one of the fastest growing fields of computer science and impacts every industry."
Apple says its new iMacs are "pretty freaking powerful"
The company has chosen the tagline “Pretty. Freaking powerful” as the tagline – and it’s not too hard to see why.
NZ ISPs issue open letter to social media giants to discuss censorship
Content sharing platforms have a duty of care to proactively monitor for harmful content, act expeditiously to remove content which is flagged to them as illegal.
Polycom & Plantronics rebrand to Poly, a new UC powerhouse
The name change comes after last year’s Plantronics acquisition of Polycom, a deal that was worth US $2 billion.
Bitdefender invests in A/NZ with new offices and regional director
Bitdefender has opened its Partner Advantage Network (PAN) programme with the aim of recruiting and supporting its over 500 local resellers.