Seagate said continued weakness in demand for its high-performance products, combined with greater-than-anticipated pricing pressure, will push the company's second-quarter earnings downward, causing it to miss Wall Street expectations for the earnings period ending January 2.
Seagate announced in October that it is reviewing its worldwide operations, considering a significant restructuring and the possibility of taking one-time charges. These charges are likely to exceed the high end of the company's previously estimated range of $50 million to $100 million.
The company said it believes it will miss its profitability mark for the upcoming quarter, even excluding those charges.
Wall Street analysts were expecting profits of 24 cents a share, according to First Call.
Seagate, a manufacturer of both storage and network-management software, reported profits of $212.6 million, or 91 cents a share, for its fiscal second quarter last year. The company's revenues, meanwhile, reached a record $2.4 billion for the quarter.
Seagate stock is trading down near its 52-week low. It ended the day at 24-5/16, off 4 percent from yesterday's close of 25-3/8.
Earlier this month, Western Digital (WDC) said its December-quarter results would be negatively impacted by competitive pricing pressures in the desktop hard-drive business, as well as by product-mix and cost issues associated with the company's last rollout of desktop drives.