Drive maker Seagate Technology (NASDAQ:STX) was unable to spin its way higher despite continued demand for advanced memory solutions. First-quarter results released after the markets closed yesterday showed the company posted net sales of $3.49 billion, a 6.5% drop from the $3.73 billion in the year-ago quarter and below the $3.56 billion Capital IQ consensus estimate. Adjusted net income was down sharply to $473 million, or $1.29 per share, a 27% drop from first-quarter 2012's $594 million, or $1.45 per share, and below the CapIQ estimates of $1.30 per share.

The drive maker says it's being pressured by technology transitions and macroeconomic uncertainty that's causing it to operate in a conservative fashion even though demand for exabytes of storage continues to rise.

Seagate did not provide guidance, but did announce that its board of directors approved a 13% increase in the quarterly cash dividend, from $0.38 per share to $0.43 per share this quarter.

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