Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
Negative Points
Q & A Highlights
Q : Can you explain how Seagate managed to achieve upside in the March quarter despite capacity constraints, and how does this affect the June quarter outlook? A : Dave Mosley, CEO, explained that the predictability built through the build-to-order process allowed Seagate to manage the capacity constraints effectively. The operational issues that caused the constraints have been resolved, and the company would have guided the same revenue for the June quarter a month ago. The build-to-order model continues to provide predictability and stability in financial planning.
Q : What is the current status of HAMR technology, and how did it contribute to the March quarter results? A : Dave Mosley, CEO, stated that HAMR technology is progressing well, with qualifications nearly complete for a major cloud service provider and several others in progress. Gianluca Romano, CFO, added that the upside in the March quarter revenue was primarily due to increased HAMR product volume, and the technology is ramping rapidly.
Q : How has visibility into demand improved, and what impact does this have on pricing strategies? A : Dave Mosley, CEO, noted that the build-to-order model provides visibility into demand through the remainder of the calendar year and into the next. This predictability allows Seagate to negotiate pricing effectively, ensuring they are compensated for the value provided to customers, especially as they transition to higher capacity products.
Q : Why is there not more upside in gross margins for the June quarter despite an expected increase in nearline shipments? A : Gianluca Romano, CFO, explained that while nearline and cloud demand will be higher in the June quarter, the timing of contract negotiations affects price increases. The company continues to focus on improving profitability each quarter, and the strategy remains strong.
Q : How will potential tariffs impact Seagate's financial model, and how are customer pricing discussions being handled? A : Dave Mosley, CEO, mentioned that Seagate is exploring operational and supply chain adjustments to mitigate tariff impacts. Passing through costs to customers is a last resort, and any cost increases will be factored into future negotiations. The company remains agile and prepared to handle such challenges.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
This article first appeared on GuruFocus .