Tech Industry

Quantum HDD sees revenue shortfall for 3Q

Quantum Corp. Hard Disk Drive Group (NYSE: HDD) said on Friday it will miss revenue estimates for its fiscal third-quarter, because of a manufacturing component issue affecting its desktop drive business.

Shares of the data storage company inched up 0.13 to 9. In October, Maxtor Corp.(Nasdaq: MXTR) announced it was snapping up up Quantum HDD in a $2.3 billion stock swap deal, expected to close early next year.

Quantum HDD said it now expects to ship between 7 million and 7.5 million units, and take in revenue of between $725 million and $750 million.

According to Quantum HDD president, John Gannon, the revenue shortfall is due to a specific component availability issue which impacted the production ramps of the company's new desktop product lines. Gannon says the company has found alternate sources for this component, but was unable to correct the situation in time to maintain its quarterly numbers.

. The company, which reported loss of 25 cents a share, excluding a special charge reversal, in the second quarter, said it expects to reduce its sequential net loss by more than half, despite the revenue shortfall. First Call Corp. estimates for the third quarter were for break even earnings.

"This shortfall is solely attributable to the desktop drive business. Our high-end business remains on track for sequential unit and revenue growth for the December quarter," Gannon added.