LONDON (ShareCast) - (ShareCast News) - US computer storage supplier Seagate Technology issued a profit warning after demand waned in the fourth quarter.
The company, which also informed of an extended partnership with IBM and HP to drive up sales of its high-performance ClusterStor storage systems, warned on Monday that fourth-quarter revenue would now be nearer $2.9bn, less than the $3.2bn from previous guidance.

Seagate, once a key bellwether for the wider technology sector, also said adjusted gross margin of about 27%, compared to previous expectations of 28.5%, due to weaker-than-expected demand during the period.

On the upside, the hard drives and cloud data storage group said adjusted operating expenses for the fourth quarter would come in at around $530m, below its previous forecast of about $555m.

On the IBM deal, Seagate said a new product, where IBM's Spectrum Scale software will be integrated with its own ClusterStor High Performance Computing or HPC storage, will yield productivity and efficiency gains for rapidly expanding data intensive markets.

Seagate believes the product will help users in data-intensive fields, such as genomic research, computer aided design, digital media, data analytics, financial model analysis and electronic design simulations.

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