DOW JONES NEWSWIRES
Seagate Technology PLC (STX) lifted the revenue outlook for its
fiscal second and third quarters, citing a better-than-expected
response to supply-chain challenges and added sales from a recent
acquisition.
Shares of the data-storage maker jumped 7.3% to $18.05 after
hours Wednesday as the company said it continues to expect stable
prices as demand for hard drives outstrips supply.
Seagate's manufacturing operations avoided direct damage from
the heavy flooding that affected factories in Thailand in October,
but disruptions among some of its component suppliers raised
uncertainty over the company's ability to meet still-high
demand.
Seagate on Wednesday said it adapted to the supply hiccups by
continually changing product builds for customers.
For the quarter ended Dec. 30, the company now expects $3.1
billion to $3.2 billion in sales, up from a late-November target of
about $2.8 billion.
Looking ahead to the third quarter, the company projected a top
line result between $4.2 billion and $4.5 billion, also up from its
November view of at least $3.75 billion.
Seagate's recent acquisition of Samsung Electronics Co.'s
(SSNHY, 005930.SE) hard disk drive business also added to its top
line.
The company said it shipped about 47 million disk drives in the
second quarter, including about 700,000 Samsung drives. In late
November, Seagate expected to ship about 43 million units.
Chairman and Chief Executive Steve Luczo said the
better-than-expected results "reflect the hard work and resiliency
of the Seagate teams and our strategic suppliers" working to adjust
to the floods in Thailand.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com