Sep 01, 1999
Convinced that the traditional annual report format - an 80-page printed brochure - was no longer the most efficient or cost-effective way to provide their target audiences with the year-end corporate financial information that they want, Seagate sponsored a research study to determine how these audiences obtain information to make investment decisions. The results led Seagate to alternative means of disseminating this information. The report, conducted by Rivel Research Group, found that the investment professionals polled, including sell and buy-side analysts and portfolio managers, value the information contained in annual reports, but the vast majority want the information via more timely, efficient and convenient vehicles like the Internet. The research indicated that ninety-seven percent of the investment community polled in the study read The Wall Street Journal every day as a source of financial information, and seventy-seven percent of the polled participants want to access annual reports online.
"Seagate has raised the bar in investor relations by supplementing its form 10-K report with a widely accessible e-version and a summary annual report in the newspaper. Seagate is making full use of today's communications technology to ensure broad, instantaneous dissemination of critical information, and I believe the reaction from the investment community and the general public alike will be a very positive one," said Richard Grasso, Chairman and CEO, New York Stock Exchange.
This innovative method of publishing financial information gives the term 'full disclosure' a new meaning. "The beauty is that they've developed a method of communicating to their audience that fits into people's regular business day, reaching Wall Street and individual shareholders alike. Simply put, their report will go with people from the train to the boardroom," said Tony Dirksen, principal and founder of Redmond Advisors.
"By early this morning, millions of people, including investors, financial and market analysts, customers, suppliers and business partners, received a copy of our summary annual report on their doorstep or desk via the most effective mediums currently available," said Steve Luczo, Seagate president and CEO. "Our goal is to provide people with information the way they want it. And through this effort, we've reached a greater audience - 2 million Wall Street Journal readers and hundreds of thousands of people via the Internet - with greater impact. At the same time, publishing our summary annual report in The Wall Street Journal, and combining it later with our form 10-K for shareholders, is less expensive than simply printing and mailing 200,000 copies of a conventional annual report," he added.
Summary Annual Report in The Wall Street Journal
The Wall Street Journal will carry Seagate's FY99 Summary Annual Report in Section A of the paper. It will include a letter to investors, financial highlights, and some insights into Seagate's view of the future of storage. This is an innovative approach that Seagate believes is likely to be of more immediate benefit to investors than simply providing a conventional annual report printed and mailed a month from now. For all shareholders of record, reprints of the summary annual report will be sent along with the 10-K and proxy.
Webcast on The Future of Storage
In concert with The Wall Street Journal launch, Seagate will air a webcast that will go live today at Noon, EDT and be viewable for a period of time at this site. Hosted by Alexa McCloughan, senior vice president at International Data Corporation and former financial analyst, the discussion with Seagate's Steve Luczo will focus on the future of storage, and address Seagate's overall business strategy and the role that the Company will play in the evolution of the technology industry.
Also launching today is Seagate's complete online annual report on form 10-K. It will feature more in-depth information on Seagate's research and development activities, business model, time-to-market success, and what Seagate is doing to drive growth in new and emerging markets.
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