Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| And so I think that's good for us |
| These gains translate into lower storage costs on a per bit basis, enabling Seagate to offer a compelling TCO proposition for our customers while enhancing our future profitability |
| We are very confident in technology |
| We expect to see further margin benefit in future quarters, as we continue to execute price adjustment across the entire portfolio, and achieve [full utilization] (ph) of projected cost savings |
| Then now we will continue to improve our structure and we think our revenue will continue also to increase sequentially |
| And a better cost structure |
| We are strengthening our balance sheet through debt restructuring actions |
| cloud customers again in the December quarter, and are encouraged by constructive customer dialogue regarding our transition to a build-to-order model, making us more confident on demand fundamentals entering calendar 2024 |
| All of these trends bode well for HDD demand recovery in both the cloud and enterprise OEM markets |
| Yes our guidance for December quarter is, of course, implying an improvement in gross margin |
| Near-term conditions aside, we are optimistic about the VIA market given the increasing use of AI and deep data analytics that enhance the effectiveness of VIA systems |
| And we're happy with the systems business and our penetration into multiple accounts on that front to recover when the on prem enterprise business does recover |
| We are operating in a longer than typical cycle, and I'm very proud of our team's shared determination and resilience |
| Looking back across our 45-year history, cost effective high capacity storage has been vital to the enterprise's ability to harness the benefits of every generational technology megatrend that we have experienced |
| We are a stronger, more efficient company with a technology roadmap that extends our areal density leadership, positioning Seagate to deliver enhanced value, to our customers and shareholders |
| Seagate's mass capacity storage portfolio sets us up strongly with this growth backdrop |
| We also continued to hit all key HAMR product development milestones, demonstrating our ability to drive significant areal density gains with this technology |
| Make sure that we as we bring on more qualifications, like we talked about in our prepared remarks that we will make sure that we have the supply that's adequate for those because I do think there will be a strong demand |
| Importantly, we continue to demonstrate financial discipline and strong execution on the priorities we outlined at the onset of this down cycle, namely to drive cash generation, strengthen our balance sheet and position the Company for enhanced profitability as the markets recover |
| So to your point, back in the last Analyst Day, the 30, the mid-30s was feeling pretty good for us given all the data growth that we know is happening |
| We are getting extremely positive customer feedback and we are broadening the number of customer qualifications as planned |
| These actions improve capital efficiency, reduce manufacturing complexity, ensure reliability, and hasten time to market |
| The improvement to the gross margin, but we see gross margin improving sequentially |
| Our execution and cycles of learning have enabled us to continue strengthening our portfolio and we expect to launch products yielding 4 terabytes per disk in less than two years' time |
| Significantly differentiating Seagate and addressing the full spectrum of mass capacity demand |
| The HDD areal density advancements that we are delivering affirm and sustain the existing TCO advantages relative to NAND for mass capacity storage |
| Customers can realize benefits across each of these objectives by upgrading their existing installed base of HDDs to higher capacity drives |
| So, I would say both pricing and cost should go in the right direction to improve our gross margin sequentially |
| These are compelling savings for customers and offer valuable optionality to best monetize their storage assets, or reallocate floor space and power budgets for other uses, or even defer new data center build-outs to maximize their capital dollars |
| Mass capacity revenue increased 3% sequentially to just over $1 billion, driven mainly by the anticipated improvement in the VIA market |
| Statement |
|---|
| Legacy product revenue was $278 million, down 31% sequentially with lower demand in each of the three markets served mission critical, clients and consumer |
| Finally, revenue for our non-HDD business decreased slightly more than anticipated to $159 million compared with $218 million last quarter |
| The entire industry has been suffering through that |
| Consistent with our recent public commentary, we experienced softer than anticipated demand in the legacy markets, while the ongoing cloud inventory correction and weak economic trends in China continued to restrain near-term demand for hard drives |
| We reserved IT spending patterns in light of economic uncertainties remain a headwind to our enterprise system business, and we expect similar revenue levels in the December quarter |
| Gianluca, as HAMR ramps, I think there's some controversy in terms of whether it's initially negative for gross margin or, you know, like what the crossover point will be for when it becomes positive to gross margin |
| Moving to our operational performance, consistent with lower revenue levels in the September quarter non-GAAP gross profit decreased by $25 million to $288 million |
| And then on the Nearline side, obviously, the shipments, extra shipments have come down quite a bit |
| In addition to cost optimization efforts, spending priorities for CSPs have temporarily shifted towards AI-related infrastructure, which have further slowed the pace of demand recovery for mass capacity storage |
| The same markets in China are lagging these early positive signals due to the regional economic conditions that I mentioned earlier |
| Probably little bit, could be lower than what we have in December, of course, but, of course, the volume that we are producing is still little bit below what we had installed in at the top of the cycle before |
| Within our hard disk drive business, revenue declined 6% sequentially to $1.3 billion, reflecting a modest improvement in mass capacity sales offset by steeper decline in the legacy market than we had originally expected |
| As a result, we anticipate the VIA market will reflect an uneven pattern of recovery going forward |
| While we believe these underlying demand trends remain intact over the long-term, the severe slowdown in China's property sector and broader global macro uncertainties are likely to temper demand over the next couple of quarters |
| However, as Dave noted earlier, the uncertain economic environment in China seems unlikely to change in the near-term |
| Dave understanding everything that you said about sort of a cyclical recovery, there's still a lot of macro headwinds out there |
| It is a tough environment |
| And then once they get their orders in, we'll say, well, the lead time is x and that might be the challenge |
| And I can be frustrated by that |
| We generated revenue of $1.45 billion and a non-GAAP loss of $0.22 per share |
Please consider a small donation if you think this website provides you with relevant information