Seagate Technology Inc has returned to profitability after two quarters in the red. The Scotts Valley, California company posted fourth-quarter net income down 62.7% at $22m on revenue down 20.3% at $1.58bn. For the year, net loss was $530m on revenue down 23.7% at $6.82bn, compared to net income of $658m, or $2.62 per share, last year. Earnings per share for the quarter came in at $0.09, down 60.9% from the year-ago quarter’s $0.23, but above the $0.06 that analysts surveyed by First Call were expecting. Gross margins for the quarter came in at 18.9%, down from 23.1% last year and fell from 22.6% to 14.5% for the year. The company shipped 6.8 million drives during the quarter, down from about 7.2 million in the previous quarter. It said that now 73% of its revenue is being derived from drives of 4 gigs or more, signaling its continuing move toward high-end products. It figures that desktop sales and margins won’t improve but the introduction of new products for the high end should offset that, leading to a prediction of slightly improved first-quarter revenue and a minimal improvement in margins. First Call is looking for $0.16 per share next time.
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