US data storage company Seagate Technology reported its fiscal first quarter 2021 revenue that missed the Wall Street expectations and the stock dropped in late trading.
Seagate's revenue dropped 10 per cent (year over year) to $2.31 billion. However, the company's earnings per share at 93 cents topped Wall Street's estimate of 90 cents.
For the current quarter, Seagate sees revenue in a range of $2.35 billion to $2.75 billion.
"Seagate delivered solid September quarter results supported by strong recovery in the video and image applications market and healthy cloud data center demand, which drove double digit year-over-year revenue growth for our mass capacity storage solutions," said Dave Mosley, Seagate's chief executive officer.
"We see indications for Enterprise demand to improve and we expect this to continue as the broader markets gradually recover, supporting our positive December quarter outlook and reinforcing our revenue expectations for the fiscal year", he said in a statement on Thursday.
The company generated $297 million in cash flow from operations and $186 million in free cash flow during the fiscal first quarter 2021.
It paid cash dividends of $167 million and repurchased 1.5 million ordinary shares for $68 million.
"As a leader in mass data management, Seagate is executing a technology roadmap focused on helping customers put their valuable data to work," Mosley said.