Jan 12, 1999
Stephen Luczo, Seagate's President and Chief Executive Officer
said, "We had an excellent quarter with strong revenue growth
and improving gross and operating margins in the disc
drive, tape and software businesses. The Company's total
revenue for the quarter represented a 16% increase over the
prior quarter, with gross margins of 23.8%, up 3.1 percentage
points from the prior quarter. In addition, Seagate's cash
position increased to $2.2 billion, which is an increase of $345
million from last quarter. We also posted significant
improvements in earnings per share, inventory turns and other
financial and operating metrics.
"We believe that this performance is directly related to the
actions we have taken over the last year to increase our
productivity and improve the competitiveness of our products.
Most important, the performance is a reflection of the
outstanding talent, dedication and effort put forth by all of
Seagate's employees throughout the world.
"We are encouraged by the effectiveness of the programs
implemented to date and are anticipating additional benefits
by the end of the calendar year from our three major
initiatives: Time to Market Leadership, Six Sigma and Supply
For the quarter ended January 2, 1998, revenue, net loss and
net loss per share were $1.673 billion, $183 million and $0.75,
respectively. Excluding the restructuring charge of $205
million, special charges of $72 million and a $22 million
reduction in the $153 million charge previously recorded for
settlement of the Amstrad litigation, and the tax effects
related to these items, the pro forma net loss per share for
the quarter ended January 2, 1998 would have been $0.08.
For the immediately preceding quarter ended October 2, 1998,
revenue was $1.553 billion with a net loss and net loss per
share of $30 million and $0.12, respectively. Excluding the
$77 million charge in connection with an amendment to the
purchase agreement for the August 1997 acquisition of Quinta
Corporation and a $7 million charge related to the separation
agreement with the Company's former Chief Executive Officer
and the tax effects related to these items, the pro forma net
income and diluted net income per share would have been $46
million and $0.19, respectively.
For the six months ended January 1, 1999, revenue was $3.354
billion and net income and diluted net income per share were
$74 million and $0.30, respectively. This compares with
revenue, net loss and net loss per share of $3.569 billion,
$423 million and $1.74, respectively, for the six months ended
January 2, 1998.
This release contains forward-looking statements based on current
expectations. These forward-looking statements entail various
risks and uncertainties that could cause actual results to differ
materially from those projected in the forward-looking statements.
These risks and uncertainties include, but are not limited to,
the implementation of ongoing operational improvements, the
realization of anticipated benefits from the Company's Time to
Market Leadership, Six Sigma and Supply Chain Management
initiatives and other factors listed in the Company's SEC
filings, including its Form 10-K, proxy statement and annual
report and in its Form 10-Q filing for the period ended
October 2, 1998. Seagate undertakes no obligation to update
forward-looking statements to reflect events or circumstances
after the date thereof.
Seagate Technology, Inc. is a leading provider of
technology and products enabling people to store, access, and
manage information. The Company is committed to providing
best-in-class products to help people get information when,
where and how they want it. Seagate is the world's largest
manufacturer of disc drives, magnetic discs and read-write
heads, an innovator in tape drives, and a leading developer
of Enterprise Information Management software. Seagate can
be found around the globe and at http://www.seagate.com. For
automated news, stock and financial information by phone,
dial toll-free 877-SEG-NYSE. Outside the U.S. and Canada,
Seagate and Seagate Technology are registered trademarks of Seagate Technology, Inc. All trademarks are the property of their respective owners.