Seagate on track with fiscal Q2 revenue, faces production delays

Seagate Technology, a global leader in data storage solutions, has reported that its fiscal second quarter revenue and profitability are currently meeting the company's forecasts. However, efforts to restore existing production equipment to full operational status are taking longer than initially planned.

The company has acknowledged that the production output for the fiscal third quarter will not meet initial expectations. This shortfall in production is predicted to affect revenue, potentially reducing it by up to $200 million.

On a positive note, Seagate has successfully completed qualification testing for its Heat-Assisted Magnetic Recording (HAMR) based Mozaic drives. This milestone was achieved with several customers within the Mass Capacity markets, indicating readiness for the next phase of deployment.

Looking ahead, Seagate anticipates starting shipments of the initial HAMR product volumes to a cloud customer in the near future. The HAMR technology is expected to play a significant role in meeting the growing demands for high-capacity data storage in cloud-based applications.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com