A rebounding PC market and continued demand for cloud storage solutions helped Santa Clara, Calif.-based hard drive maker beat Wall Street estimates for its fiscal 2015 first quarter (Q1) ended Oct. 3.
Seagate today announced that it rang up $3.8 billion in sales and $453 million in profit (non-GAAP), or earnings of $1.34 per share. Analysts had expected earnings of $1.24 per share.
During an investor conference call this morning, Seagate CEO Steve Luczo, said his company's positive Q1 financial results were "driven by higher than expected demand for our PC, gaming and cloud storage products."
Increased demand for data storage also helped the company set new records. "Seagate shipped nearly 60 exabytes of storage in the quarter, up approximately 22 percent sequentially and also year-over-year," continued Luczo. Seagate shipped 48.9 and 49.3 exabytes of storage during its fiscal 2014 first and fourth quarters, respectively.
Customers are upping the capacity of their storage systems and components. "For the first time in Seagate's history average gigabytes per drive for the quarter exceeded one terabyte," continued Luczo.
A growing cloud storage market is also proving beneficial for the storage provider. "Our cloud systems and solutions business exceeded our internal revenue plan again this quarter," he added.
Hard disk drives (HDDs) put Seagate on the map, but the company's bets on flash storage and solid-state drives (SSDs) is helping to boost the bottom line. "We are already seeing strong demand for the new Nytro PCIe product platform with customers and we believe we will continue to gain traction in this high-growth market," revealed Luczo.
Nytro hails from the company's acquisition of LSI's flash division for $450 million, which the company completed last quarter. Last month, Seagate unveiled two new Nytro PCIe flash cards, the XP6302 and the XP6209, the latter of which tops out at 1.86 TB, as part of a wide-ranging refresh of its cloud storage lineup.
Other Q1 milestones included the launch of the industry's first 8 TB hard drive. Seagate also shipped its 10 million hybrid drive (flash and HDD) and unveiled a new line of small business network-attached storage (NAS) solutions for small businesses.
Pedro Hernandez is a contributing editor at InfoStor. Follow him on Twitter @ecoINSITE.
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