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Seagate 1st-quarter profit drops more than Wall Street predicted; shares slide after hours

Hard disk drive maker Seagate Technology PLC on Monday reported that profit dropped 27 percent in the fiscal first quarter, worse than analysts expected.

Shares fell $2.60, or 5.2 percent, to $47.25 in after-hours trading.

Net income in the quarter through Sept. 27 came to $427 million, or $1.16 per share, from $582 million, or $1.42 per share, in the same months a year earlier. Excluding special items like acquisition expenses, earnings came to $1.29 per share, lower than the $1.31 expected by analysts polled by FactSet.

Revenue fell 7 percent to $3.49 billion, also below the $3.56 billion expected by analysts.

CEO Steve Luczo said technology transitions and macroeconomic uncertainty are driving the company to manage its business conservatively.

The company also said Monday that it had promoted two senior executives.

Dave Mosley, who served as executive vice president of operations and research and development, becomes president of operations and technology. Rocky Pimentel, executive vice president and chief sales and marketing officer, was named president, global markets and customers.

Both will continue to report to Luczo, who said the promotions would allow him to accelerate the company's cloud and mobile technology strategies.

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