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Seagate down after announcing $2.3B writedown

Shares of Seagate Technology fell Tuesday after the maker of hard drives said it would write down the value of the company by $2.3 billion when reporting results for its latest quarter.
/ Source: The Associated Press

Shares of Seagate Technology fell Tuesday after the maker of hard drives said it would write down the value of the company by $2.3 billion when reporting results for its latest quarter.

The stock fell 14 cents, or 3.5 percent, to close at $3.83.

Most of the charge will be due to the writedown of $2.2 billion in goodwill carried since the 2006 acquisition of Maxtor Corp., the company said in a regulatory filing late Monday.

Analyst Doug Reid at Thomas Weisel Partners said the writedown was consistent with management's comments and investor expectations.

Seagate is formally based in the Cayman Islands but operates out of Scotts Valley, Calif.