The growing shift towards flash-based storage may have made potential buyers reluctant to take the bid higher, especially when looking at the next few years. But for now the HDD market is still a strong, cash-generating business and Seagate seems optimist about the future. The company said it believes that demand has improved, and it expects revenue to be at least $2.7 billion for the current quarter, and gross margin as a percent of revenue to be at least 19.5%.
That’s down from approximately $3.03 billion revenue and gross margin of 30.5% a in the year-ago quarter, but they don’t seem in a hurry to sell the company for several times less their past year's earnings. Even if prospects look better for solid-state drives, traditional hard drives are not going away anytime soon, but on the other hand the company has enough to worry about losing its leadership position to Western Digital and dwindling profits from increased competition.