Seagate’s first quarter marked a reversal for the hard drive manufacturer. While overall revenues are 12 percent lower for the first quarter of 2010 than they were for the first quarter of 2009, Seagate realized a $179 million profit, up threefold from the first quarter of 2009.
Seagate shipped 46.3 million disk drives during the quarter, up 14 percent over the previous quarter, but down some four percent from the previous year. Still, Seagate CEO Steve Luczo is a happy camper: "The company has returned to its operating model well ahead of our expectations of six months ago and now expects to sustain gross margin of 22-26 per cent.”
Seagate is confident enough in it’s financial position to start a more aggressive push on its line of Solid State Drives (SSDs). These SATA-interfaced SSDs will be targeted initially to businesses, particular in the broad volume server market. Seagate is not looking at SSDs as replacements for hard drives. In fact, Seagate will be promoting it’s new single-platter 2.5-inch drive, which sits a mere 7 mm high, for upcoming ultra-thin notebooks, such as the Dell Adamo XPS .
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