At one point down over 4% AH due to its FQ4 revenue miss, Seagate (NASDAQ:STX) is down just 0.7% after guiding on its CC for FQ1 revenue of at least $3.55B. That's slightly better than a $3.54B consensus.
Seagate estimates the total addressable market (TAM) for hard drives was 133M-136M units in FQ4, roughly in-line with guidance. The company estimates its share slipped to ~39% from 40% in FQ3 and a year ago. Average drive capacity +3% Q/Q and +11% Y/Y to 945GB.
FQ4 gross margin was 28.5%, flat Q/Q and +50 bps Y/Y. Opex +10% Y/Y to $509M. Just $26M was spent on buybacks.
Enterprise drive shipments (higher-margin) -10% Y/Y to 7.4M. Desktop drives -2% to 18.6M, notebooks +4% to 16.8M, consumer electronics -16% to 5.1M, branded drives (also high-margin) flat at 4.8M.
Free cash flow was $446M in FQ4, and $2B in FY14.