Jul 15, 1999

Seagate Announces FY99 Fourth Quarter Results

Seagate Technology, Inc. (NYSE:SEG) today reported net income and diluted net income per share of $1.02 billion and $4.11, respectively, for the quarter ended ended July 2, 1999. Excluding all items related to the May 28, 1999 transaction whereby Seagate contributed its NSMG business to a newly formed company combining NSMG with Veritas Software Corporation, net income and diluted net income per share were $69 million and $0.30, respectively for the quarter ended July 2, 1999.

Revenue for the quarter ended July 2, 1999 was $1.643 billion compared with $1.805 billion for the immediately preceding quarter ended April 2, 1999 and $1.575 billion for the comparable year ago period ended July 3, 1998. Revenue for the years ended July 2, 1999 and July 3, 1998 was $6.8 billion for each of the two years.

On May 28, 1999, the Company contributed its NSMG business and related assets and liabilities to a newly formed company combining this business with that of Veritas Software Corporation in exchange for approximately 69.1 million shares, adjusted for the recent two-for-one stock split, or forty-two percent (42%) of the new Company. As a result of this transaction, the Company received shares having a then market value of $3.05 billion and recorded a pre-tax gain of $1.67 billion, net of certain related one-time charges of $136 million.

Net income and diluted net income per share for the comparable year-ago quarter were $22 million and $0.09, respectively, and $82 million and $0.34, respectively, for the immediately preceding quarter.

For the year ended July 2, 1999, net income and diluted net income per share were $1.176 billion and $4.53, respectively, compared with a loss of $530 million or $2.17 per share, respectively, for the year ago period ended July 3, 1998.

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, dial 760-704-4368.

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 SEAGATE TECHNOLOGY, INC. FINANCIAL HIGHLIGHTS (In Millions Except Per Share and Percent Data) Three Months Ended Year Ended -------------------------- ----------------------- July 2, July 3, July 2, July 3, 1999 1998 1999 1998 ------------ ------------ ------------ ---------- Income Statement ---------------- Revenue $ 1,643 $ 1,575 $ 6,802 $ 6,819 Gross profit 369 299 1,552 989 As a percent of revenue 22.5% 19.0% 22.8% 14.5% Income (loss) before income taxes $ 1,645 $ 30 $ 1,873 $ (704) Provision (benefit) for income taxes 625 8 697 (174) Net income (loss): Amount $ 1,020 $ 22 $ 1,176 $ (530) As a percent of revenue 62.1% 1.4% 17.3% (7.8%) Net income (loss) per share: Basic $ 4.53 $ 0.09 $ 4.94 $ (2.17) Diluted 4.11 0.09 4.53 (2.17) Number of shares used in per share computations: Basic 224.9 244.2 237.9 243.6 Diluted 230.2 247.1 243.1 243.6 July 2, July 3, 1999 1998 ------------ ------------ Balance Sheet ---------------- Cash, Cash Equivalents and Short-Term Investments $ 1,623 $ 1,827 Inventories 451 508 Inventory Turns 11.3 10.1 
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