Maxtor Slides to Loss

The hard drive maker had warned on July 1.
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Updated from July 21

Hard drive maker

Maxtor

(MXO)

posted a second-quarter loss and a 10.2% year-over-year revenue drop amid aggressive pricing by rivals. The company's results, released after the close Wednesday, were in line with its lowered forecast of July 1, but below Wall Street expectations.

The company reported a loss of $26.1 million, or 11 cents per share, compared to a profit of $6.2 million, or 3 cents a share, a year ago, according to generally accepted accounting principles. Revenue in the quarter dropped to $818.3 million, from $910.9 million during the same quarter of 2003.

Excluding a charge and income from a lawsuit settlement, Maxtor said it had a loss of $45.8 million, or 19 cents a share. Analysts polled by Thomson First Call were expecting sales of $823.76 million and a loss of 8 cents a share.

Average selling prices for desktop hard drives fell from $75 in the first quarter to $71, CEO Paul Tufano said. Demand in the distribution channel was "sluggish," he said, and the company apparently lost sales opportunities with a major PC manufacturer that Tufano did not name.

Maxtor shares were off 52 cents, or 9.4%, to $5 Thursday morning.