Seagate CEO anticipates demand remaining high through 2010

In a further sign that economic conditions are improving Seagate has indicated that it expects demand to keep close to matching what it can supply throughout the rest of the year. The disk drive manufacturer revealed its forecasts of demand in its third quarter results which included higher profits

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In a further sign that economic conditions are improving Seagate has indicated that it expects demand to keep close to matching what it can supply throughout the rest of the year.

The disk drive manufacturer revealed its forecasts of demand in its third quarter results which included higher profits than some market watchers had been expecting.

For the three months ended 2 April the storage player shifted 50.3m disk drives generating revenues of $3.05bn, compared to $2.15bn in the same period last year, and net income of $518m, which turned around a loss in Q3 2009 of $275m.

The quarter also included a $4m hit from a restructuring charge taking the same cost cutting measures that a great many in the industry rolled out in the teeth of the recession.

Steve Luczo, CEO of Seagate (pictured), said in a statement that the final numbers had been "contrary with our expectations at the beginning of the March quarter".

He said it had managed to deliver large volumes of products and keeping inventory levels low.

"Demand for Seagate products remains very strong and we expect to see tight supply throughout the remainder of the calendar year," he added.

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