Seagate Takes Down Guidance

Low demand combines with pricing pressures.
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Seagate Tech (STX) - Get Report cut its third-quarter outlook due to diminished demand and pricing pressures for its high-capacity 3.5-inch ATA disc drives.

The hard-drive maker said Monday that it now expects revenue to be about $2.8 billion, compared with previous expectations of $2.9 billion to $3 billion.

A Thomson Financial analyst survey expected the company to post revenue of $2.94 billion in the quarter.

In addition, Seagate said gross margins didn't achieve expectations.

The company said it believes that its market share, both in total and within each market currently served, is virtually unchanged from the previous quarter. "Overall, the company's results continue to be healthy and are reflective of its leadership position in an industry where consumers and applications are using, creating and sharing digital content at an accelerating pace," the company said in a press release.

Shares of Seagate were halted for late trading; the stock closed the regular session up 19 cents to $23.46.