Jul 13, 2000

Seagate Announces Fiscal Year 2000 Fourth Quarter Results

SCOTTS VALLEY, Calif. - Seagate Technology,Inc. (NYSE:SEG) today reported revenue of $1.548 billion, pro forma net income of $52 million and pro forma diluted net income per share of $0.22 for its quarter ended June 30, 2000.

For the same period, on a GAAP basis, Seagate reported net income of $231 million and diluted net income per share of $0.96. The results for the quarter included gains on certain equity investments including SanDisk Corporation ("SanDisk"),Dragon Systems, Inc., CVC, Inc. and iCompression; compensation expense related to employee separation costs; restructuring costs and unusual items.

For the quarter ended July 2, 1999, revenue was $1.643 billion, net income was $1.020 billion and diluted net income per share was $4.11. Excluding all items related to the contribution of NSMG to Veritas Software Corporation ("Veritas"), net income and diluted net income per share for the quarter ended July 2, 1999 were $69 million and $0.30, respectively.

For the immediately preceding quarter ended March 31, 2000, revenue was $1.573 billion and net income and diluted net income per share were $136 million and $0.58, respectively. Excluding the in-process research and development charge in connection with the acquisition of XIOtech Corporation, restructuring costs, a gain on sale of a portion of the Company's investment in SanDisk, and all items related to the Company's investment in Veritas, the pro forma diluted net income per share for the quarter ended March 31, 2000 was $0.20.

On March 29, 2000, Seagate announced the proposed transaction with Veritas and an investor group led by Silver Lake Partners ("Silver Lake") which, if consummated, would result in Seagate's stockholders receiving shares of Veritas common stock and cash for their shares of Seagate common stock. We believe that while this transaction is pending, the value of Seagate common stock will depend primarily on the value of Veritas common stock.

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 Business Intelligence 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, dial 760-704-4368.

The foregoing press release contains forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Such statements regarding the proposed transaction with Veritas and the Silver Lake investor group are based on the current expectations and beliefs of management at Seagate and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such factors could include the failure of the transaction to close due to a failure to receive requisite stockholder or governmental approvals, a failure to fulfill other required closing conditions or the impact of pending litigation. For a detailed discussion of these and other cautionary statements, please refer to the joint proxy statement/prospectus filed by both Seagate and Veritas, as well as Seagate's filings with the Securities and Exchange Commission, especially in the "Factors Affecting Future Operating Results" section of the Management's Discussion and Analysis of Financial Condition and Results of Operations section of Seagate's Form 10-K for its fiscal year ended July 2, 1999 and its Form 10-Q for its fiscal quarter ended March 31, 2000.

(In Millions Except Per Share and Percent Data)
  Three Months Ended Year Ended
  June 30, 2000 July 2, 1999 June 30, 2000 July 2, 1999
Income Statement        
Revenue $ 1,548 $ 1,643 $ 6,448 $ 6,802
Gross profit   337   369 1,254 1,552
    As a percent of revenue 21.8% 22.5% 19.4% 22.8%
Income before income taxes $  311 $1,645 $  609 $1,873
Provision for income taxes 80 625 299 697
Net income:        
    Amount $  231 $1,020 $  310 $1,176
    As a percent of revenue 14.9% 62.1% 4.8% 17.3%
Net income per share:        
    Basic $ 1.01 $ 4.53 $ 1.40 $ 4.94
    Diluted 0.96 4.11 1.34 4.53
Number of shares used in
per share computations:
    Basic 228.2 224.9 221.2 237.9
    Diluted 240.1 230.2 230.6 243.1
  June 30, 2000 July 2, 1999    
Balance Sheet        
Cash, Cash Equivalents and
Short-Term Investments
$2,015 $1,623    
Inventories $430 $451    
Inventory Turns 11.3 11.3