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Earnings Roundup

Seagate results soar on demand

January 18, 2008|From Times Wire Services

Hard-drive maker Seagate Technology's fiscal second-quarter earnings nearly tripled as shipments rose 20% year over year.

Seagate Chief Executive Bill Watkins said that the company couldn't meet demand in every segment of its business during the quarter and predicted that the industry, which supplies storage components in computers, game consoles, digital video recorders and other devices, would continue to see robust demand.

For the quarter ended Dec. 28, the world's largest drive maker earned $403 million, or 73 cents a share, up 188% from $140 million, or 23 cents, in a year earlier. Excluding special items, Seagate said it would have earned 76 cents a share. Analysts polled by Thomson Financial had expected adjusted earnings of 75 cents a share.

Revenue rose 14% to $3.42 billion from $3 billion, falling short of analyst expectations of $3.49 billion.

Shares of Seagate closed at $21.60, down $1.38, and they shed 46 cents in after-hours trading.

Seagate is based in the Cayman Islands but operates out of Scotts Valley, Calif.

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