The disk drive maker said it posted a net profit of $22 million, or 9 cents per share, for the three months ended July 3, compared with a net profit of $59 million, or 23 cents a share, for the like quarter a year earlier. First Call's consensus of analysts' estimates had pegged Seagate's earnings at 6 cents per share.
The company recorded quarterly revenue of $1.575 billion, down from $1.977 billion posted a year earlier.
The disk drive industry has been trying to recover from a prolonged slump brought on by pricing pressures, stiff competition, and the Asian economic crisis.
The quarterly results include a charge of $7 million to write off in-process research and development related to the buyout of Eastman Software's storage management group.
In a separate earnings announcement today, Rambus, a developer of high-speed DRAM technologies, posted net profits for the third fiscal quarter of $1.7 million, or 7 cents per share, compared with a profit of $527,000, or 3 cents per share, posted for the like period a year ago. The company generated quarterly revenue of $7.5 million, up from $5.4 million. The results were in line with analysts' expectations.