Seagate Technology Ltd. predicted earnings could fall up to 29% during the current quarter, proving the disk drive maker is not immune to the pain its low-cost drives have reportedly dished out to competitors.
Seagate, Scotts Valley, Calif., said earnings for its current fourth fiscal quarter will fall to between $0.32 and $0.37, down from the $0.45 the company originally expected. Revenues from disk drives will decrease only 6%, but that shortfall will be equal to about $100 million, the company said.
In a statement, the company noted "an extremely aggressive pricing environment for desktop disk drive products," and added that its first fiscal 2000 quarter, ending Oct. 1, will also be adversely affected by an undisclosed amount. Analysts believe Seagate's low-cost U4 drive has been at the heart of a pricing war that's forced fellow drive makers Maxtor Corp., Quantum Corp., and Western Digital Corp. to preannounce their own earnings shortfalls.
The company did not hold a conference call to discuss its results, and a spokesman declined to comment further.