The declining demand in the PC market had a negative impact on hard-drive makers such as Seagate Technology (STX) and Western Digital (WDC). However, the recent reports from IDC suggest that things are looking up for PC demand and this makes the case of these hard-drive makers pretty interesting. Now, in order to combat the slowdown in PC demand both these companies tried their hands into new revenue opportunities including the cloud, data centers and mobile devices. This transition, however, isn't proving to be easy. When Seagate released its fourth-quarter results, it posted yet another year-over-year decline in revenue and earnings.
For the fourth quarter, the company reported revenue of $3.301 billion compared with $3.425 billion in the same quarter last year, representing a decrease of 3.6%. Adjusted earnings per share of $1.10 were 8.3% below the same quarter last year's non-GAAP EPS of $1.20. Seagate has also lost market share to rival Western Digital in the storage industry, and this has added to its troubles. However, Seagate managed to satisfy consensus estimates when it released results, and its outlook was at par with expectations. The company has been taking steps to improve its long-term prospects through its new product lines and technology, and it seems to be making good progress. Continue Reading »