Seagate Technology, the world's largest disk-drive maker, reported fourth-quarter earnings Tuesday that were lower than year-ago results but higher than most analysts forecast.
The company (SEG) said it earned US$22 million in the fourth quarter ended 3 July. The amount was less than half the $59 million it earned in last year's fourth quarter, before the disk-drive industry hit a worldwide slump.
On a per share diluted basis, earnings fell to 9 cents from 24 cents. Excluding a $7 million charge, the write-off for an acquisition, Seagate would have earned 11 cents a share.
Wall Street had expected the Scotts Valley, California, company to earn 6 cents a share, according to estimates compiled by First Call.
A Seagate spokesman also said the company's condition is significantly better than in the third quarter. It's a sign that the company's enormous restructuring and cost control efforts are paying off, he said.
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Ascend delivers: Telecommunications equipment maker Ascend Communications reported revenue and earnings for the second quarter that were in line with Wall Street expectations.
The company (ASND) said Tuesday it had second-quarter net income of US$59.1 million compared with a loss of $48.8 million in the same quarter of 1997. The year-ago second-quarter results included a charge of $150.3 million to cover the cost of two acquisitions.
The latest results were the equivalent of 29 cents per share, a penny ahead of the consensus estimate by Wall Street analysts, according to First Call.
Second-quarter sales rose to $327 million from $312 million in the June quarter of 1997, also in line with estimates.
Looking ahead, Ascend said the company continues to see strong sales growth in North American markets for its computer networking gear.
Reuters contributed to this report.
