Latest news with #MagneticRecording
Express Tribune
3 days ago
- Business
- Express Tribune
Seagate confirms shipping of 40TB HAMR HDDs
Seagate has quietly shipped limited samples of its new 40-terabyte hard drives, marking a significant step forward in storage technology. The 40TB drives use Heat-Assisted Magnetic Recording (HAMR) technology, specifically Seagate's Mozaic 4+ platform, achieving 4TB per platter across ten platters. This innovation promises substantial gains in storage capacity and efficiency, especially for data centres handling large-scale operations. At a recent investor conference, Seagate's Chief Technology Officer, Dr John Morris, confirmed that engineering samples have already been delivered to select customers. 'We do plan to initiate qualifications next quarter, continuing into 2026, where we will bring a broad portion of our customer base onto the Mozaic 4 platform,' he said. Full production and commercial availability depend on the pace at which data centres integrate and validate the new drives. The company aims to shift a significant proportion of its exabyte-level shipments to HAMR-based drives, which offer improved capacity and operational efficiency. Seagate CEO Dr Dave Mosley highlighted the benefits for data centres: 'Ten disks give you 40 terabytes, offering better efficiencies at the fleet level, which is how our customers think.' Looking ahead, Seagate plans to expand capacity further, targeting 44TB drives by 2027 and 50TB models by 2028. These ambitions reflect ongoing challenges in scaling HAMR technology, with the 50TB drive launch delayed from an original 2017 projection to 2026. These ultra-high-capacity drives primarily target enterprise and data centre clients, rather than typical consumer markets, due to their specialised nature and cost. Seagate's early shipments underscore its technical lead in the race for the largest hard disk drives, though commercial rollout remains cautious amid the complexities of advanced storage technologies.
Techday NZ
25-05-2025
- Business
- Techday NZ
Seagate raises share buyback to USD $5 billion, sets 2028 goals
Seagate has outlined its long-term strategy for value growth, new financial targets through fiscal year 2028, and an expansion of its share repurchase programme. At its 2025 Investor and Analyst Event, Seagate set out its approach to capitalising on data storage demand and driving both profitability and shareholder value. Dave Mosley, Seagate's Chief Executive Officer, stated, "Technology innovation and AI are fueling exponential data growth and driving demand for the hard drive storage industry." "Seagate today is uniquely positioned to capture this opportunity with our Mozaic portfolio powered by market-leading HAMR technology. Our differentiated portfolio addresses critical data centre challenges, including cost, scale and sustainability, enabling us to deliver storage solutions for customers from cloud to edge." He continued, "Since our last Investor and Analyst Event in 2021, we have made structural improvements to extend demand visibility, maintain supply discipline, optimise product mix, and streamline cost structure. We are a stronger company today thanks to the dedicated efforts of our global team." "This is an incredibly exciting time at Seagate, and we are confident we have the right technology and strategy to lead the next era of storage in today's data-driven world, while delivering enhanced value to shareholders." The company presented new financial targets set through the fiscal year 2028, which, according to Seagate, are underpinned by the adoption of its HAMR (Heat-Assisted Magnetic Recording) technology. This approach, the company asserts, provides a pathway from its current Mozaic 3+TB/disk product towards future 10+TB/disk capacities, responding to increasing requirements for mass-capacity storage. Mozaic is highlighted as Seagate's portfolio leveraging HAMR technology, targeted to address growing needs for both scale and efficiency in data centre environments. The roadmap outlined at the event details Seagate's intention to incrementally increase areal density and drive advancements in storage capacities, aiming to outpace industry requirements for enterprises and cloud providers alike. In addition to its product and strategy updates, Seagate announced that its Board of Directors has authorised an increase in share repurchase capacity, lifting the authorisation to USD $5 billion. This expanded authorisation, which does not carry a time limit, demonstrates what the company says is an ongoing commitment to returning capital to shareholders and reflects its confidence in its strategic direction and financial health. The company noted that any share repurchases would be subject to Seagate's financial position, performance, cash availability, capital demands, distributable reserves, and other considerations evaluated by the board. The increased focus on long-term profitability is positioned around both continued execution and operational discipline, as well as targeted investment in storage technologies. Seagate referenced structural changes since 2021 as key drivers enhancing its capacity to address market cycles and project financial visibility. Seagate reinforced its view that exponential data growth, fuelled by technology and artificial intelligence, is creating new demands within the hard drive storage industry. The company asserts its Mozaic HAMR-based portfolio offers competitive advantages on cost, scalability, and environmental considerations, intended to support deployment across cloud and edge environments. The company's materials presented during the event confirm plans for a sequence of product launches that continue the expansion of its Mozaic line, with a strategic focus on capacity increases critical to both hyperscale and enterprise markets. Seagate reports it has shipped more than four billion terabytes of data capacity since its founding, and maintains a product portfolio that covers data storage requirements from edge compute locations to core cloud data centres.
Techday NZ
23-05-2025
- Business
- Techday NZ
Seagate unveils growth strategy, boosts share repurchases to USD $5bn
Seagate Technology has announced a new business strategy targeting financial and technological growth supported by its Heat-Assisted Magnetic Recording (HAMR) technology and a revised share repurchase program. The company has set new financial targets through its 2028 fiscal year, underpinned by the introduction and broader adoption of HAMR technology, which it claims will transform storage capacity and efficiency for hyperscale and enterprise data centres. As part of the announced strategy, Seagate also increased its share repurchase authorisation to USD $5 billion. Seagate outlined a product roadmap featuring its Mozaic platform, with projections to progress from 3+ terabytes per disk to more than 10 terabytes per disk in response to escalating demand for storage driven by artificial intelligence and cloud computing. The roadmap is designed to address increasing requirements from large-scale data centres, offering a scalable path to higher data storage densities. Dave Mosley, Seagate's Chief Executive Officer, said: "Technology innovation and AI are fueling exponential data growth and driving demand for the hard drive storage industry. Seagate today is uniquely positioned to capture this opportunity with our Mozaic portfolio powered by market-leading HAMR technology. Our differentiated portfolio addresses critical data center challenges, including cost, scale and sustainability, enabling us to deliver storage solutions for customers from cloud to edge." Mosley further commented: "Since our last Investor Day in 2021, we have made structural improvements to extend demand visibility, maintain supply discipline, optimize product mix, and streamline cost structure. We are a stronger company today thanks to the dedicated efforts of our global team. This is an incredibly exciting time at Seagate, and we are confident we have the right technology and strategy to lead the next era of storage in today's data-driven world, while delivering enhanced value to shareholders." During its investor event, Seagate shared new financial targets that cover the period through FY2028. The company is aiming for a revenue compound annual growth rate in the low-to-mid teens, a non-GAAP gross margin target of 40% with potential for further expansion, and an incremental margin of approximately 50% starting at USD $2.6 billion in quarterly revenue. Operating expenses are projected to remain around 10% of revenue, and capital expenditures are expected to be between 4% and 6% of revenue. The company anticipates returning more than 75% of free cash flow to shareholders. Part of the updated capital allocation strategy includes an increase in the share repurchase authorisation to USD $5 billion. The authorisation does not have a specific expiration date, and decisions regarding share repurchases will be influenced by Seagate's financial position, results of operations, available cash and cash flow, capital requirements, distributable reserves, and other factors deemed relevant by the company. The financial targets and product development roadmap are being introduced as data centre operators and cloud service providers face mounting requirements for cost-effective, high-capacity storage solutions. Seagate expects demand will be mainly driven by increased adoption of AI workloads, cloud migration, and continued digital transformation across several industries. Seagate's Mozaic portfolio, designed to be powered by HAMR technology, intends to address these requirements by elevating data storage density while aiming to improve cost efficiencies and operational sustainability within data centres. The company's management maintains that its technology and operational decisions are structured to provide long-term shareholder value while supporting evolving market needs. The company confirmed that the execution of repurchases within the expanded authorisation will remain flexible and evaluate multiple business and financial considerations. The share repurchase programme represents an ongoing component of Seagate's broader capital allocation strategy, reflecting management's stated confidence in the sustainability of its business model and future prospects. Seagate's updated strategic focus follows previous structural improvements since its last major investor update in 2021. These changes include efforts to enhance demand forecasting, maintain supply chain discipline, optimise product range, and reduce operating costs.
Yahoo
13-05-2025
- Business
- Yahoo
STX Q1 Earnings Call: Cloud Demand and Technology Transition Drive Seagate's Outperformance
Data storage manufacturer Seagate (NASDAQ:STX) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 30.5% year on year to $2.16 billion. On the other hand, next quarter's revenue guidance of $2.4 billion was less impressive, coming in 0.6% below analysts' estimates. Its non-GAAP profit of $1.90 per share was 9.3% above analysts' consensus estimates. Is now the time to buy STX? Find out in our full research report (it's free). Revenue: $2.16 billion vs analyst estimates of $2.14 billion (30.5% year-on-year growth, 0.9% beat) Adjusted EPS: $1.90 vs analyst estimates of $1.74 (9.3% beat) Adjusted EBITDA: $570 million vs analyst estimates of $559.6 million (26.4% margin, 1.9% beat) Revenue Guidance for Q2 CY2025 is $2.4 billion at the midpoint, below analyst estimates of $2.42 billion Adjusted EPS guidance for Q2 CY2025 is $2.40 at the midpoint, above analyst estimates of $2.05 Operating Margin: 20%, up from 8.6% in the same quarter last year Free Cash Flow Margin: 10%, up from 7.7% in the same quarter last year Inventory Days Outstanding: 96, up from 89 in the previous quarter Market Capitalization: $21.64 billion Seagate's first quarter results were shaped by strong demand for high-capacity storage drives, particularly from global cloud customers, and the company's ongoing focus on profitability and operational leverage. CEO Dave Mosley attributed the year-on-year revenue growth to Seagate's build-to-order supply model and disciplined supply management, which allowed the company to prioritize high-value product segments and navigate recent supply constraints. Mosley emphasized, 'Our supply discipline, the visibility we gain through our build-to-order strategy, and our execution on strategic pricing actions all contribute to sustainable and profitable growth over the long-term.' Looking ahead, management's guidance reflects both opportunities and caution. The company anticipates continued cloud-driven demand and further adoption of its HAMR (Heat-Assisted Magnetic Recording) technology, but also flagged potential risks from new trade tariffs and evolving customer procurement behaviors. CFO Gianluca Romano stated that Seagate expects 'minimal direct impact from tariff policies' in the coming quarter, but noted that the company is monitoring for secondary effects on customer demand. The team reiterated a commitment to improving margins and free cash flow, while remaining agile in response to macroeconomic and policy changes. Seagate's management highlighted a combination of operational improvements, product transitions, and resilient cloud demand as primary factors behind its quarterly performance. The company also discussed ongoing technology shifts and supply-demand dynamics shaping its near-term outlook. Cloud nearline demand surge: Seagate saw significant growth in nearline hard drive shipments to global cloud providers, driven by increased data center investments and AI-related workloads. Management noted that nearline exabyte shipments nearly doubled year-over-year and that this segment now represents the majority of mass capacity volume. HAMR technology ramp: The company's rollout of HAMR-based Mozaic drives is progressing, with multiple cloud customers in qualification stages. Management indicated that HAMR contributed incrementally to quarterly results, with expectations for broader adoption and higher shipment volumes in the second half of the year. Build-to-order model effectiveness: Seagate's adoption of a build-to-order supply chain model improved supply predictability and allowed the company to manage customer allocations during recent supply constraints. This approach has enhanced the company's agility amid industry volatility. Pricing and product mix discipline: Strategic pricing actions and a richer sales mix of high-capacity drives supported the expansion of gross and operating margins. Management highlighted that these factors, along with initial HAMR sales, helped offset declines in legacy product segments. Tariff and supply chain risk management: While management expects minimal direct impact from recently announced tariffs in the next quarter, it is evaluating longer-term strategies such as geographic diversification of manufacturing and supply chains to mitigate potential trade disruptions. Management's outlook centers on demand from large cloud and hyperscale customers, ongoing technology transitions, and the company's ability to adapt to trade policy changes and supply chain risks. Cloud and AI infrastructure demand: Seagate expects continued strength in cloud nearline storage as data center operators expand capacity to support AI and video workloads. The company believes that both hyperscale and smaller edge data centers will drive exabyte demand well into next year. HAMR adoption and product transitions: The successful qualification and ramp of HAMR-based drives are expected to accelerate revenue growth and support margin expansion, as these products offer higher capacities and improved cost efficiency compared to traditional PMR (Perpendicular Magnetic Recording) drives. Tariff and supply chain adaptation: While management anticipates only minor direct impacts from new tariffs in the near term, there is ongoing monitoring for indirect effects on customer procurement. The company is prepared to adjust its manufacturing footprint and renegotiate supply agreements if trade disruptions intensify. Erik Woodring (Morgan Stanley): Asked how Seagate achieved upside despite supply constraints and whether guidance would have changed if announced earlier. Management cited the predictability of its build-to-order model and stated guidance would have remained the same. Asiya Merchant (Citi): Requested details on HAMR drive qualification and contribution to results. Management revealed that HAMR drives contributed incremental volume and that qualifications remain on track for broader adoption in the second half of the year. C.J. Muse (Cantor Fitzgerald): Questioned improvements in demand visibility and pricing dynamics. Management emphasized improved visibility into customer demand into next year and highlighted ongoing pricing discipline in new contracts. Wamsi Mohan (Bank of America): Sought clarification on margin expansion given product mix changes. CFO Gianluca Romano explained that higher cloud nearline volumes and timing of price increases influence margin trends, with the overall strategy focused on consistent improvement. Hadi Orabi (TD Cowen): Asked about the timeline and approach for passing through tariff-related costs if needed. Management explained that cost pass-through would be a last resort, with operational adjustments and customer negotiations preferred to maintain margins. In the coming quarters, the StockStory team will be monitoring (1) the pace and breadth of HAMR drive adoption among major cloud customers, (2) Seagate's ability to maintain supply-demand balance as new data center investments accelerate, and (3) the company's agility in responding to developing trade policy and tariff risks. Progress on technology qualifications and execution of supply chain adaptation will also be important markers for future performance. Seagate Technology currently trades at a forward P/E ratio of 11.4×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. 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Yahoo
25-02-2025
- Business
- Yahoo
Has Seagate scored a game-changing deal? World's largest HDD vendor buys HAMR company, critical to 100TB HDD goal
When you buy through links on our articles, Future and its syndication partners may earn a commission. Seagate is set to buy Intevac, a specialist in HAMR drive production HAMR is seen as the technology which is going to drive HDDs to 100TB+ The move is a serious blow to Western Digital and Toshiba's own HAMR plans Seagate is charging ahead in its quest to produce super-sized HDDs. Towards the end of January 2025, the world's largest hard drive vendor introduced a 36TB model - arriving just a month after it debuted a 32TB one - and it revealed at the time that a 60TB drive is on its way. Now, the firm has announced plans to acquire Intevac, a company known for making sputtering systems that apply ultra-thin layers of material, such as an iron-platinum alloy (FePt), to HDD platters. This advanced deposition process allows for the creation of magnetic layers with higher uniformity, improved signal-to-noise ratios, and fewer defects, potentially resulting in denser data storage. Over 65% of the world's hard disk output is produced using Intevac's systems, which works out to more than 50 million disks per month. The technology is considered essential for Perpendicular Magnetic Recording (PMR) and Heat-Assisted Magnetic Recording (HAMR). HAMR, which lowers magnetic resistance by heating the drive, allows data to be written in smaller, more stable bits and will likely to be a key factor in HDDs reaching 100TB capacities. By buying Intevac, Seagate has potentially scored a big win over its rivals. Seagate is Intevac's primary customer, but Western Digital is one too, and it, along with Toshiba, has HAMR drives in the works. The definitive agreement will see Seagate acquire Intevac in an all-cash transaction for $4 per share. Intevac will also pay a one-time special dividend of $0.052 per share (bringing the aggregate consideration to Intevac stockholders to $4.052 per share). Separately, Intevac's Board of Directors has declared a regular quarterly dividend of $0.05 per share, which will be paid on March 13, 2025, to Intevac stockholders. As a result of the move, Intevac will no longer hold its earnings call, which had been set for February 25. Intevac's Board of Directors has unanimously (and unsurprisingly) approved the transaction and recommended that all stockholders tender their shares in the offer. The acquisition is expected to close in late March or early April 2025, although, as Blocks and Files points out, 'Western Digital or Resonac [which counts Toshiba as a customer] or both could object to the deal on reduced competition grounds, which could delay its completion or even prevent the transaction from taking place.' That's unlikely of course - Seagate wouldn't have moved forward with the acquisition if its lawyers were anticipating problems of that magnitude. Seagate will be able to increase HAMR drive production following the acquisition, but the move could hamper Western Digital and Toshiba's efforts in that department, as it would mean buying the sputtering tools they need from Seagate, a major rival. These are the fastest hard drives you can buy right now And these are largest SSDs and HDDs on the planet Hundreds of the world's largest hard disk drive have gone on sale online Sign in to access your portfolio
