Seagate Technology Holdings plc (NASDAQ:STX) Q1 2024 Earnings Call Transcript

Dave Mosley: Calendar 2024, you said?

Vijay Rakesh: Yeah. Right.

Gianluca Romano: Yeah. I don’t think we guide. So far in time precisely on the mix.

Dave Mosley: Yeah. We’re not going to guide that, but I will say that, we’ll be very aggressive. When we talked about 4 terabytes per disc and the and cost optimization of these platforms and things like that. I mean, this is something the hard drive industry has been doing for years and years, decades. Right? So, we know how to do these transitions. We are very confident in technology. And we look to be very aggressive there. The wafer lead times are also quite long. So, we’re already starting on this journey because we’re already in wafer and so we’re populating the wafer fabs with the parts that will support it.

Vijay Rakesh: Got it. And then on the Nearline side, obviously, the shipments, extra shipments have come down quite a bit. As you look at the green shoots with some data center coming back, do you feel pretty comfortable given what the inventory levels are at the OEMs and what you see in terms of a return, on the spend. How would you characterize that, if you look at those two? Thanks.

Dave Mosley: Yes. I do think that the inventory has been depleted now to levels that if you think about the complexity of all the data centers of the world and how much material needs to be parked out of them in front of them for replacements and then what the data growth is in the data center, I think the inventory levels have come down to a point where we feel comfortable now that people are going to get back to more predictable buying patterns.

Vijay Rakesh: Thank you.

Operator: This concludes our question-and-answer session. I would like turn the conference back over to management for any closing remarks.

Dave Mosley: Thanks, Andre. As you heard today, Seagate remains focused on our key priorities including executing our leading technology roadmap which we believe positions us to to enhance profitability over the near term and to capture long term opportunities for mass capacity storage. I’ll close by once again thanking all of our shareholders for their ongoing support of Seagate. Thanks for joining us today. And we look forward to speaking with you during the quarter.

Operator: The conference is now concluded. Thank you for attending today’s presentation, and you may now disconnect.