Seagate Shares Hit Post-IPO Low After Q4 Revenue Warning; CEO Watkins Says Some Rivals "In Really Bad Shape"

Seagate (STX) CEO Bill Watkins says some of his Asian competitors in the hard disk-drive market are in “really bad shape” and could be forced to team up to stay in business. In particular, he thinks Toshiba, Fujitsu and Samsung are suffering large losses; he thinks Toshiba and Fujitsu make “try to get together.”

Watkins made his remarks in an interview this afternoon with Tech Trader Daily following the company’s announcement of third-quarter results. While the September quarter numbers weren’t bad, the December outlook fell short of Street expectations, and the stock is trading lower after hours.

Watkins says that “bizarre as it sounds,” he feels better about Seagate’s business now then he did in June, noting that the company has made improvements in inventory turns, trimmed operating expenses and sped up the introduction of some new products. He says that business in October “looks pretty good, to be honest,” but that no one knows how things will go for the rest of the December quarter. Watkins says the PC manufacturers are like “deer in the headlights,” after failing to see a back-to-school demand pickup, and aren’t sure what happens in terms of fourth-quarter sales.

Read the rest of this post


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »