Seagate Technology (STX 56.98, +2.04) has spiked 3.7% in pre-market after reporting better than expected quarterly results.
The manufacturer of hard drives, solid state drives, and solid-state hybrid drives reported above-consensus second quarter earnings of $1.48 per share on a 0.7% year-over-year increase in revenue to $2.91 billion, which also exceeded expectations.
It is worth noting that Seagate primed the market for a revenue beat on January 8, when it announced that it expects to ship about 40 million drives during the second quarter with a record average capacity per drive of 2.2 terabytes.
Gross margin declined to 30.4% from 31.8% one year ago.
The bulk of Seagate's revenue came from HDD sales, which totaled $2.72 billion, up 15.0% quarter-over-quarter, and up 2.8% year-over-year. Enterprise Systems, Flash, and Other revenue increased 7.0% year-over-year to $259 million. On a sequential basis, Enterprise Systems, Flash, and Other revenue grew 15.6%.
Seagate's channel mix showed only slight changes. OEM revenue made up 68.0% of second quarter sales, up from 66.0% one year ago. Distributors revenue and Retail revenue each made up 16.0% of total sales. One year ago, Distributors revenue accounted for 18.0% of total sales while Retail revenue made up 16.0% of sales.
The company ended the quarter with 50,048 worldwide employees, up from 44,882 employees one year ago.