Seagate Technology Holdings Public Limited Company (STX, Financial) recently participated in the UBS Global Technology and AI Conference, where CEO Dave Mosley provided significant updates on the company's business operations. During the event, Mosley highlighted the successful completion of qualification testing for Seagate's HAMR-based Mozaic drives with several customers in the Mass Capacity markets, including a leading cloud service provider. The company anticipates beginning initial shipments of HAMR product volume to this cloud customer in the coming weeks.
Despite the positive developments in HAMR technology, Seagate is facing challenges in meeting the rising demand for hard disk drives (HDDs). The company has been working to reactivate existing production equipment to support customer demand, a process that has taken longer than expected. Consequently, Seagate projects a lower production output for its fiscal third quarter ending March 28, 2025, which could result in a revenue impact of up to $200 million.
However, Seagate reassures investors that revenue and profitability for the fiscal second quarter ending December 27, 2024, are trending in line with management's expectations and remain unaffected by the production delays.
For more detailed insights and to access the live and replay audio webcasts of the conference, visit Seagate's Investor Relations website at investors.seagate.com.
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