Seagate Posts Huge Q2 Loss; Outlook Weak; Cuts Div

Seagate (STX) this afternoon reported revenue for its fiscal second quarter ended January 2 of $2.3 billion, at the bottom end of the company’s forecast range of $2.3 billion to $2.6 billion . Seagate also posted a loss for the quarter of $496 million, or $1.02 a share, including $383 million, or 79 cents a share,  in one-time items, including a restructuring charge and a $271 million charge for an unfavorable adjustment to the company’s valuation allowance for deferred tax assets. That suggests a loss before items of about $113 million, or 23 cents a share. The Street had expected a loss of 5 cents a share. The company also said that it will reduce its quarterly dividend rate to 3 cents a share from 12 cents, a move that it says will save the about $175 million over the next 12 months. (The yield on the old rate had crept over 10%, which suggests maybe you could have seen this coming.) For the March quarter, Seagate expects revenue of $1.6 billion to $2 billion, below the ... (link)