Profit is also down, but Seagate banking on Dot Hill and Samsung deals to make a turnaround in 2016
Slowing demand for Seagate Technology‘s storage products caused the firm to miss revenue and profit targets during the most recent quarter.
Revenues came in $2.93 billion (£1.9bn), lower than the £3.03 billion predicted by analysts. while profits were $34 million (£22m) – a significant fall from the $381 million (£247m) it made during the same period last year.
“Lower than planned nearline enterprise demand temporarily impacted our financial results,” said CEO Steve Luczo.
“We are pleased with the momentum we have across our products, which will be further supported by the newly acquired assets of Dot Hill and our ability to now completely integrate the Samsung hard drive business,” said Luczo.
It was only last week when the Seagate was given the go ahead to fully swallow Samsung’s HDD business from China’s Ministry of Commerce.
Despite the deal going ahead in 2011, a complete takeover by Seagate was held by China’s Ministry of Commerce on the grounds of a “hold separate” clause. The agency’s decision is the result of an ongoing dialogue regarding the “hold separate” conditions it required of Seagate following its acquisition of Samsung’s HDD business in 2011.
Seagate expects positive impact of Samsung’s business throughout 2016.