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SCOTTS VALLEY — Hard drive maker Seagate Technology on Wednesday raised its fiscal fourth-quarter revenue guidance due to better-than-expected demand and favorable pricing for its products.
The company also said improving efficiency helped results. In May, the company said it plans to cut about 1,100 jobs, or 2.5 percent of its global work force, to reduce costs and help the company reach its goal of becoming cash flow and earnings positive in fiscal 2010.
Seagate said it expects the total available market for hard disk drives is about 120 million units, higher than the 114 million units expected previously.
It now expects revenue for the quarter ending July 3 of $2.2 billion to $2.3 billion, from guidance in April of about $1.9 billion to $2.2 billion. Analysts surveyed by Thomson Reuters, on average, predict revenue of $2.09 billion.
In the fiscal first quarter ending Oct. 2, Seagate expects the total available market for drives to rise seasonally by 6 percent to 8 percent.
It expects revenue of $2.35 billion to $2.5 billion. Analysts predict revenue of $2.27 billion.
"We are making successful transitions to our newer, more cost effective and more competitive products," said CEO Steve Luczo in a statement.
Shares rose 7 cents to $9.94 during aftermarket trading.
