swung to a loss for the fiscal second quarter and predicted weaker-than-expected revenue for the current quarter, putting pressure on its shares late Wednesday.
The disk-drive maker also cut its quarterly dividend to 3 cents a share from the payout of 12 cents last quarter, a move meant to save around $175 million in the next year.
Revenue slumped to $2.27 billion in the quarter ended Jan. 2 from $3.42 billion a year earlier and missed the consensus view of $2.46 billion. The company lost $496 million, or $1.02 a share, which included charges and costs of $383 million, or 79 cents a share. In the same period a year earlier, Seagate earned $403 million, or 73 cents a share.
For the March quarter, Seagate said that assuming no significant changes in its market share, revenue will probably be $1.6 billion to $2 billion, below the $2.19 billion Wall Street projection. Additionally, the company expects to incur additional restructuring charges directly related to its planned
Shares of Seagate were losing 4.5% to $4.06 in late trading after gaining 9.5% in the regular session. Competitor
was off 0.8% to $12.80, and
was down 1.4% at $37.36.
The tech sector was busy after the close, as
said it would close
This article was written by a staff member of TheStreet.com.