Seagate revenue up 8.5 pct on demand for PC, cloud products

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Hard-disk drive maker Seagate Technology's quarterly profit and revenue beat the average analyst estimate as demand increased for its personal computer and cloud storage products.

Seagate shares were up 1.8 percent in premarket trading. (Click here for the latest quote.)

The company gets about two-thirds of its revenue from original equipment manufacturer customers, including PC makers.

Research firm IDC estimated earlier this month that worldwide PC shipments had fallen 1.7 percent in the quarter ended Septemberless than what analysts had feared, offset by a 4.3 percent growth in the United States.

More businesses in the United States and Europe upgraded computers or bought new machines in the quarter.

Net income attributable to Seagate fell to $381 million, or $1.13 per share, for the first quarter ended Oct. 3, from $427 million, or $1.16 per share, a year earlier.

Excluding items, the company earned $1.34 per share.

Revenue jumped 8.5 percent to $3.79 billion.

Analysts on average had expected earnings of $1.24 per share on revenue of $3.63 billion, according to Thomson Reuters I/B/E/S.