UPDATE 2-Seagate disappoints on margins, suspends dividend

* Q3 margin 7-7.5 pct, vs estimates of around 12-13 pct

* Sees Q3 revenue $2.1 bln, vs estimates $1.86 bln

* Sees Q4 revenue range $1.9-2.2 bln vs estimate $1.86 bln

* Suspends qtly dividend, annual savings $60 mln

* Shares down 6.6 pct (Recasts, adds analyst comment on margins, updates stock activity)

NEW YORK, April 13 (Reuters) - Seagate Technology (STX.O: Quote, Profile, Research) on Monday posted disappointing quarterly gross margins and eliminated its dividend, sending the computer storage maker's shares lower despite strong revenue.

Seagate said margins for the third quarter ended April 3 were about 7 to 7.5 percent, reflecting weak demand from corporate customers and stronger sales of lower-priced products.

While the company said that was better than it had anticipated, the results fell far short of analysts' expectations of about 12 percent, as did Seagate's forecast of about 11 percent for fourth-quarter margins.

Seagate shares were down 44 cents to $6.21, off about 6.6 percent, after earlier touching a session low of $5.87 on Nasdaq. The decline comes after the stock more than doubled in the past month.