Dec 29, 1996
For the six months ended December 27, 1996, revenue, net income and fully diluted net income per share were $4.46 billion, $342 million and $1.36, respectively. This compares with revenue, net income and fully diluted net income per share of $4.48 billion, $270 million and $1.15, respectively, for the six months ended December 29, 1995.
The Company also announced it had reached tentative settlements of two separate securities class action lawsuits filed against the Company and the Company's wholly owned subsidiary, Conner Peripherals, Inc. in 1991 and 1993 respectively. The settlements, which are subject to court approval and completion of appropriate settlement agreements, have had an insignificant impact on the Company's financial results and should have no adverse impact on the Company's ongoing operations or financial results.
During the quarter ended December 27, 1996, the Company effected a two-for-one stock split in the form of a stock dividend. Prior periods have been restated to reflect the stock split. In addition, during the quarter ended December 27, 1996, $788 million principal amount of the Company's 5%, 6-1/2% and 6-3/4% convertible subordinated debentures were converted to 38.4 million shares of the Company's common stock and $1.2 million were redeemed.
The February 1996 merger with Conner Peripherals, Inc. was accounted for as a pooling of interests, and accordingly all prior periods have been restated to reflect this transaction.
This release contains a forward-looking statement included in the paragraph above relating to the Company's tentative settlements of two lawsuits. This forward-looking statement is based on current expectations and entails various risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statement.
Seagate Technology is a data technology company that provides products for storing, managing and accessing digital information on the world's computer and data communications systems. Seagate, at $8.6 billion in revenue for its fiscal year ended June 28, 1996, is the largest independent disc drive and components company in the world.
SEAGATE TECHNOLOGY, INC.
FINANCIAL HIGHLIGHTS
(In Thousands Except Per Share and Percent Data)
Three Months Ended Six Months Ended
---------------------- ----------------------
Dec. 27, Dec. 29, Dec. 27, Dec. 29,
1996 1995 (1) 1996 1995 (1)
---------- ---------- ---------- ----------
Net sales $2,400,156 $2,339,691 $4,460,981 $4,480,496
Gross profit 541,499 453,823 934,275 849,923
As a percent
of sales 22.6% 19.4% 20.9% 19.0%
Income before
income taxes $ 295,278 $ 216,372 $ 474,946 $ 389,813
Provision for
income taxes 82,678 67,457 132,985 120,089
Net income:
Amount $ 212,600 $ 148,915 $ 341,961 $ 269,724
As a percent
of sales 8.9% 6.4% 7.7% 6.0%
Net income
per share:
Primary $ 0.91 $ 0.74 $ 1.51 $ 1.35
Fully diluted 0.84 0.63 1.36 1.15
Number of shares
used in per share
computations:
Primary 234,266 200,932 226,831 199,528
Fully diluted 264,302 252,122 262,935 250,834
(1) The three and six month periods ended December 29, 1995 have
been restated to reflect the merger with Conner Peripherals, Inc. on
a pooling of interests basis and a two-for-one stock split, effected
in the form of a stock dividend, in November 1996.
