Margins Drive Maxtor Stock Shares Lower
Weak gross margins pushed hard-drive maker Maxtor (MXO) into a disappointing third quarter, despite a 10% increase in unit sales. Shares of Maxtor were trading down $0.05 cents or -1.36% to $3.64 at the closing bell as a result of the news. Maxtor shares have dropped nearly a full dollar in October.
And the end of the company’s hard times is not yet in sight. Maxtor is late to market with new, high-capacity drives and instead of the expected fourth-quarter profit, Maxtor forecast a substantial loss. The Milpitas, Calif.-based company on Wednesday said it lost $17 million, or 7 cents a share, compared with a loss of $95 million, or 38 cents a share, in the same quarter of 2004.
Revenue was off slightly to $926.5 million vs. $927.2 million last year.
Comments are closed.