Seagate revenue and earnings soar on storage demand

Stan Beer
Friday, 20 January 2006 09:37

Accelerating demand for storage products has given disk drive vendor, Seagate Technology, a bumper harvest in the second quarter of the 2006 fiscal year, with record quarterly revenue of US$2.3 billion and net income of US$287 million.

The financials demonstrate impressive growth of 25% in revenue and 100% in earnings over the previous corresponding quarter.

'Seagate's outstanding performance reflects the company's unique and consistent ability to successfully capitalise on the accelerating demand for digital content being consumed at home, at work and on the go,' said Bill Watkins, Seagate president and chief executive officer. 'Our broad product line coupled with our technology, product and cost leadership continues to deliver key advantages across the expanding markets for disc drives, fueling significant unit and revenue growth.

'Over the last 12 months, the industry shipped 380 million disc drives totaling a massive 35 million terabytes of storage - an increase of 60% from 2004. This underscores the enormous proliferation of digital content and the need for mass storage in the growing number of consumer electronics devices as well as across the computing landscape. As more and more content providers unlock digital content for users, Seagate will play an enabling role in this trend. We're pleased to deliver another great quarter and look forward to continued strong operating results in the second half of the fiscal year.'

The largest growth was generated by the consumer electronics and mobile computing products areas, while the enterprise and desktop products areas grew relatively modestly by comparison.