Rumors were flying from an industry convention that Seagate was in negotiations to buy SanDisk for their Flash / SSD technology... http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=210004140
Seagate announced that it plans to expand its operations in the Chinese market. The Chinese PC market is predicted to grow at a rate of 10 to 15 percent a year until 2010, with notebook sales growing 30 percent per year. Retaining a edge in the fast-growing market should lead to increased revenue.
Seagate reduced its third-quarter revenue forecast to $2.8 billion from the $2.94 billion consensus estimate. In addition, an industry report showed that sales of 3.5" hard disk drives used in desktops and low-end servers decreased at the end of the quarter. Seagate shares fell by $2.17, or 9.3 percent, to $21.29.
Seagate reported revenue and EPS forecasts that were equal to or higher than previous analyst estimates. Stock prices rose by 8.3%, from $26.18 to $28.35.