SOURCE: The Bedford Report

The Bedford Report

January 21, 2011 11:25 ET

Large Selloff Breaks Out in the Data Storage Sector

The Bedford Report Provides Analyst Research on Seagate Technology & Brocade Communications

NEW YORK, NY--(Marketwire - January 21, 2011) - Shares throughout the Data Storage Industry have been hammered this week following a string of disappointing earnings reports.  Companies focused on the growth of so-called "cloud computing" had been on a tear the past year, and as Ryan Hutchinson of Lazard Capital Markets says, investors had come to expect "beat-and-raise" quarterly earnings reports -- as in beat analyst estimates, and raise guidance. The Bedford Report examines the outlook for companies in the Data Storage Devices Industry and provides research reports on Seagate Technology PLC (NYSE: STX) and Brocade Communications Systems, Inc. (NASDAQ: BRCD). Access to the full company reports can be found at:

Shares of Seagate plummeted well over 6 percent yesterday after the company said its net income fell to $150 million, or 31 cents per share, in its fiscal second quarter. The results missed analyst estimates look for earnings of 33 cents a share and were down sharply from $533 million, or $1.03 per share, in the same period a year earlier.

The Bedford Report releases regular market updates on the Data Storage Devices Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

Seagate's CEO Steve Luczo said the hard disk drive (HDD) market has marginal excess capacity and faces "muted consumer demand" for PCs but strengthening demand for PCs from companies. Analysts had been forecasting negative long term effects of the iPad on the PC industry. According to market research firms Gartner and IDC's estimates worldwide PC shipments grew 7.6 percent during the third quarter, well below its anticipated projection of 12.7 percent. 

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