Hard-disk drive maker Seagate Technology reported higher-than-expected profit and revenue, helped by strong demand for its cloud-based storage products.
The company’s shares (STX) rose 4.2% to $39 in after-market trading on Tuesday.
The hard-disk drive maker has been focusing on cloud-based products as businesses cut spending on traditional storage systems.
The company said in July it would cut about 6,500 jobs, or 14% of its workforce, by the end of fiscal 2017, as part of a major restructuring.
Seagate also said earlier this month that it plans to shut its Suzhou factory in China.
The company’s net income rose to $297 million, or $1 per share, in the second quarter ended Dec. 30, from $165 million, or 55 cents per share.
Excluding items, the company earned $1.38 per share in the quarter, beating the average analyst estimate of $1.08 per share, according to Thomson Reuters I/B/E/S.
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Revenue fell 3.1% to $2.89 billion, but beat the average estimate of $2.82 billion.
Rival Western Digital will report its second-quarter results on Wednesday.
