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Quantum's Hard Disk Drive Group


said revenue and unit shipments for the third quarter will be lower than expected due to the shortage of a specific production part.

The company expects fiscal third-quarter revenue of $725 million to $750 million on shipments of 7 million to 7.5 million units.

The Hard Disk Drive Group has alternate sources for the component, but couldn't obtain enough to prevent the drop in the current quarter. The company now has an adequate supply of the part.

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Analysts surveyed by

First Call/Thomson Financial

expect Quantum's Hard Disk group to break even on a per share basis for the third quarter. The company earned 6 cents a share for the same period a year ago.

The company also said its high-end business remains on track for sequential unit and revenue growth for the December quarter. Despite the lower than expected revenue, the Hard Disk group still expects "significant sequential improvement" in its operating results. The company also expects to reduce its loss "by more than half" from the loss of 25 cents a share in the prior quarter.

Shares of the Hard Disk Drive Group recently rose 94 cents, or 10.6%, to $9.81 in Big Board trading.