Seagate Technology (NASDAQ: STX) is sharply lower off the open (-11.9%) with the call on-going.

The company said for the June quarter, they are expecting to achieve revenues of between $2.5 billion and $2.6 billion, which is shy of the consensus of $2.68 billion. Expectations reflect the seasonal decline in revenue, their desire to maintain lower inventories going into the summer months and some conservativism due to the potential impact of component shortages in DRAM and NAND on various aspects of their customers' businesses in the server, CSP and client space. They are raising gross margin expectations for the June quarter to 31%. And are targeting a new range for calendar 2017 of 29% to 33%.

Seagate continues to expect overall exabyte demand to grow double digits in calendar 2017 over 2016, representing modest revenue growth opportunities for Seagate. Assuming market conditions remain intact, they continue to believe Seagate will achieve earnings per share of at least $4.50 in calendar 2017 (*** consensus is $4.50), and will provide a fiscal '18 outlook on the July call.