In a research note released today, Goldman Sachs & Co. analyst Laura Conigliaro said her previous estimate of $0.28 per share for the current quarter may be too high. Industry comments are for the most part negative, consistent with our recent checks, Conigliaro wrote. Seagate also made numerous comments about pricing, inventory levels, and the competitive environment that suggest a difficult environment at least through mid year.
In its filing, Seagate said it could get hurt by the merger of the disk drive businesses of IBM Corp. (NYSE: IBM) and Hitachi Ltd. (NYSE: HIT; Paris: PHA) into Hitachi GST (see IBM, Hitachi Finish Merging Disk Units). Because IBM is one of our most significant customers and Hitachi is one of our most significant competitors, there is a significant risk that IBM will decrease the number of rigid disk drives purchased from us, the filing states.
Seagate admitted to certain execution issues related to product quality with its personal storage disk drives. There was no mention of problems with its enterprise drive that Byte and Switch reported in December (see Seagate Drives Dinged).
Dave Raffo, Senior Editor, Byte and Switch
To realize the benefits of cloud-native software, an application must actually be cloud-native—designed to run in the cloud, interacting with disaggregated cloud services, fully manageable as code—to deliver the expected benefits.
By combining resources and expertise, the AI-Enabled ICT Workforce Consortium will offer a blueprint for how industries can adapt to an AI-dominated future.
IT leaders should heed the guidance of cybersecurity insurance providers who think businesses should prioritize security education, incident preparedness, regular internal audits, and ongoing vulnerability scanning and patching.
