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Actionable news in STX: Seagate Technology.,

Seagate warns revenue and margins will miss

Seagate Technology PLC said Thursday that its revenue and gross profit margin would likely fall short of expectations for its latest quarter, reflecting weak demand for a new line of data storage hardware.

Seagate, down 28% this year, fell nearly 15% to $40.81 in response to the news.

The company, based in Cupertino, Calif., has long been one of the biggest makers of disk drives. The company and rival Western Digital Corp. far outsell others in the field after buying major rival manufacturers.

The two companies get much of their revenue from selling drives that store data in PCs, a market whose recent declines have hurt their growth. They also face competition from companies that sell storage devices based on flash memory chips rather than disk drives.

Seagate, besides...