Seagate reports falling profits on acquisition of Maxtor

Seagate reports falling profits on acquisition of Maxtor

Seagate Technology is the leaders in hard disk market and they have just come out with their latest revenue reports. The company reported that their quarterly net profit plunged 98 percent as the cost of acquiring Maxtor took its toll on their bottom line.

Seagate added that they are also planning to repurchase as much as $2.5 billion of its stock over the next two years. They had just recently bought back about $400 million of stock in the quarter ended June 30.

This report led to a 4.4 percent fall in the company’s share at the stock market. The company said that in the fourth quarter it recorded $146 million of accounting charges related to the Maxtor purchase. In addition, they also had to take care of about $72 million of Maxtor’s operating losses.

Seagate also added that they expect to integrate Maxtor’s operations by the end of this year.