Seagate (STX) this afternoon posted revenue for its fiscal third quarter ended April 2 of $3.05 billion, slightly ahead of the Street at $3.03 billion. Profits of $1 a share beat the Street at 94 cents; results for the latest quarter include 3 cents a share of various one-time expenses.
The company shipped 50.3 million disk drives in the quarter. Gross margin was 29.6%.
CEO Steve Luczo said in a statement that demand remains “very strong,” and that the company expects to see tight supply throughout the remainder of calendar 2010.
STX is late trading is up 7 cents, at $19.40.
Update: On a post-earnings conference call with the Street, Luczo says the total addressable market was higher than expected in the quarter at 163 million units; pricing was in line with expectations. Channel inventory remained about three weeks, he said. The company expects a 155-160 million unit TAM in the June quarter. He still thinks the TAM for the full year will be 650 million to 670 million. Luczo says there are early indications that a commercial PC refresh cycle has begun, though, and� he says the total TAM could be higher if the economy expands in the second half of the year. Luczo expects price erosion to be less than historical levels for the rest of the year due to tight supply.
For the June quarter, the company sees revenue of $2.85 billion to $3.05 billion, with profits of 81-85 cents a share; the Street has been expecting $2.94 billion and 81 cents. Gross margin is expected to be slightly lower sequentially, due largely to mix factors.
The stock is now up 52 cents, or 2.7%, to $19.85.
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