SCOTTS VALLEY (dpa-AFX) - Computer hard disk maker Seagate Technology plc (STX), Thursday lowered its revenue guidance for the fourth quarter, due mainly to lower shipments and a quality issue with a component supplier.
Cupertino, California-based Seagate now expects revenue of about $4.5 billion and adjusted gross margin of 33.6 percent for the fourth-quarter. Previously, the company expected revenue of at least $5 billion and adjusted gross margin of at least 34.5 percent.
On average, 19 analysts polled by Thomson Reuters currently estimate revenues of $4.88 billion for the fourth-quarter.
Chief Executive Steve Luczo said, 'Seagate expects to report another record quarter of revenue in the June quarter, however we did not meet our expected revenue and margin plan.'
Seagate said it failed to achieve its planned market share growth as the company reduced shipments in response to the industry's faster than expected recovery from their supply chain disruption.
Seagate also experienced an isolated supplier quality issue that affected one of its enterprise product lines. This supplier issue impacted Seagate's enterprise product unit shipments by about 1.5 million units and drove its adjusted gross margin below expectations.
Moving ahead, Luczo added, 'Based on the macro-economic concerns indicated by a broad base of customers, we are approaching the September quarter conservatively and aligning our business for a relatively flat addressable market and modest improvements in our product mix.
For the first quarter of fiscal 2013, Seagate expects average selling prices and margins to remain relatively stable.
STX closed Thursday's trading on the Nasdaq at $25.08, down $0.05 or 0.20%, on a volume of about 7.5 million shares. The stock further lost $0.76 or 3.03% in after-hours trade.
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