Maxtor Narrows Quarterly Loss

Revenue falls from a year earlier.
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Maxtor

(MXO)

narrowed its fourth-quarter loss and posted stronger-than-expected sales, the hard-drive maker announced after Tuesday's closing bell.

In one of its last stand-alone quarters, the company lost $15.7 million, or 6 cents a share on sales of $969 million. A year ago, the company lost $70 million, or 28 cents a share on sales of $1.03 billion. Last year's loss included a $25 million charge elated to the cancellation of Maxtor's 2.5-inch drive program.

Analysts polled by Thomson First Call had projected a loss of 7 cents a share with revenue of $954 million. The results were in line with the company's guidance.

Gross margins decreased sequentially to 9.3% from 11.1%, while average selling prices increased by $1 to $71.

Seagate

(STX) - Get Report

last month agreed to buy Maxtor in a stock deal valued at $1.9 billion. The deal isn't expected to close until late in the year.

Maxtor closed the session at $9.20, a gain of 5 cents.