Oct 18, 2001

Seagate Announces First Fiscal Quarter 2002 Results

Seagate and its affiliated companies (the "Company") today reported consolidated revenue of $1.402 billion, net income of $32 million and EBITDA of $145 million for its quarter ended September 28, 2001.

For the immediately preceding quarter ended June 29, 2001, pro forma net income was $18 million and pro forma EBITDA was $102 million. The pro forma results excluded restructuring charges and a write-down of one of the Company's investments in equity securities.

For the year-ago quarter ended September 29, 2000, pro forma net income of the Company's predecessor, Seagate Technology, Inc., was $62 million and pro forma EBITDA was $235 million. The pro forma results excluded gains on sales of certain investments in equity securities, all items related to the Company's previous investment in VERITAS Software Corporation and restructuring charges.

Seagate and its affiliated companies are controlled by New SAC, a Cayman Islands limited liability company, organized in 2000 to acquire the hard disc drive and storage solutions business, the tape drive business, the software business and certain other assets of Seagate Technology, Inc. These businesses include: Seagate Technology Holdings (which includes hard disc drives and Seagate Technology SAN Holdings, which was previously XIOtech Corp.), Seagate Removable Storage Solutions Holdings, and Crystal Decisions (formerly known as Seagate Software Information Management Group Holdings, Inc.). The acquisition closed on November 22, 2000.

SEAGATE AND ITS AFFILIATED COMPANIES
FINANCIAL HIGHLIGHTS
(In Millions)
 
Three Months Ended
 
September 28, 2001
September 29, 2000 (1)
Statement of Operations Data
   
Revenue
$ 1,402
$ 1,756
Gross profit
346
414
As a percent of revenue
24.7%
23.6%
Income before income taxes
$ 40
$ 112
Provision for income taxes
8
37
Net Income:
   
Amount
$ 32
$ 75 (2)
As a percent of revenue
2.3%
4.3%
EBITDA (pro forma)
$ 145
$ 235
Balance Sheet Data
   
Cash, Cash Equivalents and Short-Term Investments
$ 951
$ 2,351
Accounts Receivable, net
659
777
Days Sales Outstanding
43
40
Inventories
353
362
Inventory Turns
12.0
14.8
Capital Expenditures (3 months)
108
139

(1) Derived from the financial statements of the Company's predecessor, Seagate Technology, Inc.

(2) On a pro forma basis, net income was $62 million. The pro forma results excluded gains on sales of certain investments in equity securities, all items related to the Company's previous investment in VERITAS Software Corporation and restructuring charges.

For Further Information Contact:
Stephen J. Luczo, CEO
Charles C. Pope, CFO
Julie Still, Media Relations

SEAGATE
920 Disc Drive
Scotts Valley, CA 95066
831-438-6550