Seagate 3Q profit climbs after Samsung deal

Associated Press

CUPERTINO, Calif. (AP) — Hard drive maker Seagate Technology PLC said Wednesday that its net income jumped in the fiscal first quarter as its expenses decreased and its revenue rose after it bought Samsung's hard drive business.

Seagate bought Samsung's hard drive division in December for $1.38 billion, and the company said its revenue increased 33 percent compared to the year-ago quarter.

Its results in the first quarter of fiscal 2012 were weighed down by higher interest costs and other items.

The company said it earned $582 million, or $1.42 per share, over the three months ended Sept. 28. That's up from $140 million, or 32 cents per share, one year ago. If one-time costs are excluded Seagate said its net income totaled $1.45 per share in the most recent quarter. Revenue grew to $3.73 billion from $2.81 billion.

Analysts were forecasting net income of $1.68 per share and $3.75 billion in revenue, according to estimates compiled by FactSet.

Shares of Seagate lost 78 cents, or 2.8 percent, to $27.13 in morning trading. Its shares are down 24 percent from a 52-week high of $35.71 in mid-August.