Seagate Technology has come out with second quarter preliminary financial information ending December 29th 2017, which expect the revenue of approximately $2.9 billion, and GAAP and non-GAAP gross margin of approximately 30 percent. The company also reports shipments of 40 million hard drives recording average capacity per drive of 2.2 terabytes.
“Our revenue growth and strong portfolio profitability in the December quarter reflect solid demand for high-capacity mass-storage solutions, particularly for our cloud-based environments,” said Dave Mosley, CEO, Seagate. “The availability of our cloud and edge portfolio remains constrained with broad-based customer demand globally and we are looking forward to planning discussions with a significant number of customers at CES this week,” added Mosley.
During the December quarter, Seagate entered into a previously announced long-term NAND supply agreement with Toshiba Memory Corporation that will provide continuity of NAND supply for Seagate’s current and future SSD product portfolio. Securing additional NAND supply through a long-term agreement with Toshiba Memory Corporation fulfills our current needs for NAND and increases the potential for Seagate to deliver new and innovative flash-based solutions. Diversifying and expanding our competitive HDD mass-storage portfolio with SSD and enterprise storage solutions will enable meaningful future revenue growth and profits over the next several years while providing significant value for our storage customers,” said Mosley.
Due to industry forecasts for explosive data creation and next-generation workloads over the next decade and beyond, the storage industry anticipates an increase in global storage needs for existing and new markets. To address these needs, Seagate has developed and invested in building a robust digital storage portfolio to provide customers with solutions that fit their dynamic storage needs, including HDDs, SSDs, and hybrid solutions.