HDD mechanical hard disk sales have been declining in recent years, the performance of the only three remaining manufacturers are under pressure, especially the main production of mechanical disk Seagate, the company suddenly announced early this morning to reduce revenue expectations for the first quarter of fiscal year 2023, sales will be reduced by about $ 300 million.
Seagate Technology said it now expects sales in the first quarter of fiscal 2023 to be between $2 billion and $2.2 billion, compared with previous expectations of $2.35 billion to $2.65 billion.
In a statement, Seagate CEO David Mosley said the company’s business has been impacted by a series of dynamic changes in market conditions that have put pressure on inventory and the supply chain, as well as more cautious buying behavior by international and domestic U.S. cloud customers, following the release of its FY22 Q4 results in July.
These changes will not only affect Seagate’s revenue, but also Seagate’s profit, resulting in EPS earnings per share significantly below expectations of $1.20, for which Seagate is also making adjustments, including reducing production, lowering spending costs and slowing investment plans for 2023.
According to Seagate’s earnings report released in July, revenue in the Q4 fiscal quarter was $2.63 billion, below analysts’ expectations of $2.8 billion, compared with revenue of $3.01 billion a year ago, down 12.6 percent, while profit was $276 million, compared with $482 million a year ago, down 42 percent.
Officials stopped announcing specific shipment data early on, but the data in the earnings report can be used to assess shipments – the total capacity of hard drives shipped in the Q4 fiscal quarter was 154.6EB, with an average hard drive capacity of 7.8TB, calculated to show that only 19.82 million hard drives were shipped in Q4, compared to 28.2 million in the same period last year The number of hard drives shipped in Q4 decreased by nearly 10 million units.
