Jan 09, 2003
"Our results reflect solid execution and continued market leadership, and are attributable to the efforts of every employee at Seagate," said Steve Luczo, Seagate's chief executive officer. "It is important to understand that this performance is the direct result of the multiple investments in people, process and technology that we've made over the last few years. We remain committed to investing in product development and operational efficiency programs that will further strengthen our position."
For the year-ago quarter ended December 28, 2001, consolidated revenue was $1.629 billion, net income was $124 million and diluted net income per share was $0.31.
A conference call will take place today at 2:00 PM Pacific Time, to discuss the second quarter results. The live, public webcast of the conference call can be accessed from www.seagate.com.
A replay will be available beginning at 5:30 PM Pacific Time today, running through January 16 at 11:59 PM Pacific Time. The replay can be accessed from www.seagate.com or by telephone as follows:
USA: 800-475-6701
International: 320-365-3844
Access code: 667693
About Seagate
Seagate is the worldwide leader in the design, manufacturing and marketing of hard disc drives for Enterprise, PC and Consumer Electronics applications. The Company is committed to delivering award-winning products, customer support and reliability, to meet the world's growing demand for information storage. Seagate can be found around the globe and at www.seagate.com.
(In Millions, except per share amounts)
(Unaudited)
![]() |
Three Months Ended
![]() |
Six Months Ended
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||||||||||||
Statement of Operations Data |
Dec. 27,
2002 |
Dec. 28,
2001 |
![]() |
Dec. 27,
2002 |
Dec. 28,
2001 |
|||||||||
Revenue |
$
|
1,734
|
$
|
1,629
|
$
|
3,313
|
$
|
2,923
|
||||||
Gross profit |
$
|
493
|
$
|
437
|
$
|
865
|
$
|
735
|
||||||
As a percent of revenue |
28.4
|
%
|
26.8
|
% |
26.1
|
% |
25.1
|
% | ||||||
Income before income taxes |
$
|
202
|
$
|
149
|
$
|
316
|
$
|
189
|
||||||
Provision for income taxes |
$
|
4
|
$
|
25
|
$
|
8
|
$
|
31
|
||||||
Net income: | ||||||||||||||
Amount |
$
|
198
|
$
|
124
|
$
|
308
|
$
|
158
|
||||||
As a percent of revenue |
11.4
|
% |
7.6
|
% |
9.3
|
% |
5.4
|
% | ||||||
Net income per share: | ||||||||||||||
Basic |
$
|
0.49
|
$
|
0.31
|
$
|
0.76
|
$
|
0.40
|
||||||
Diluted |
0.43
|
0.31
|
0.67
|
0.40
|
||||||||||
Number of shares used in per share calculations: | ||||||||||||||
Basic |
408
|
400
|
405
|
400
|
||||||||||
Diluted |
463
|
400
|
459
|
400
|
||||||||||
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Balance Sheet Data |
Dec. 27,
2002 |
Dec. 28,
2001 |
||||
Cash, Cash Equivalents and Short-term Investments |
$
|
974
|
$
|
915
|
||
Accounts Receivable, net |
$
|
628
|
$
|
686
|
||
Days Sales Outstanding |
33
|
38
|
||||
Inventories |
$
|
310
|
$
|
305
|
||
Inventory Turns |
16.0
|
15.6
|
||||
Capital Expenditures (3 months) |
$
|
123
|
$
|
130
|
||
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For further information, contact:
Rod Cooper, Investor Relations
Brian Ziel, Media Relations
Seagate Technology
920 Disc Drive
Scotts Valley, CA 95066
831-438-6550
(In Millions, except per share amounts)
(Unaudited)
![]() |
Three Months Ended
![]() |
Six Months Ended
![]() |
||||||||||||
Dec. 27,
2002 |
Dec. 28,
2001 |
![]() |
Dec. 27,
2002 |
Dec. 28,
2001 |
||||||||||
Revenue |
$
|
1,734
|
$
|
1,629
|
$
|
3,313
|
$
|
2,923
|
||||||
![]() |
||||||||||||||
Cost of revenue |
1,241
|
1,192
|
2,448
|
2,188
|
||||||||||
Product development |
169
|
164
|
329
|
315
|
||||||||||
Marketing and administrative |
105
|
109
|
191
|
205
|
||||||||||
Amortization of intangibles |
![]() |
5
|
![]() |
10
|
||||||||||
Restructuring |
![]() |
![]() |
7
|
![]() |
||||||||||
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
|||||||||
Total Operating Expenses |
$
|
1,515
|
$
|
1,470
|
$
|
2,975
|
$
|
2,718
|
||||||
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
|||||||||
Income from operations |
$
|
219
|
$
|
159
|
$
|
338
|
$
|
205
|
||||||
![]() |
![]() |
![]() |
![]() |
|||||||||||
Interest income |
4
|
6
|
8
|
15
|
||||||||||
Interest expense | (12) | (19) | (25) | (42) | ||||||||||
Other, net | (9) | 3 | (5) | 11 | ||||||||||
![]() |
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![]() |
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![]() |
![]() |
|||||||||
Other Income (Expense), net |
$
|
(17)
|
$
|
(10)
|
$
|
(22)
|
$
|
(16)
|
||||||
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
|||||||||
Income before income taxes |
$
|
202
|
$
|
149
|
$
|
316
|
$
|
189
|
||||||
Provision for income taxes |
4
|
25
|
8
|
31
|
||||||||||
![]() |
![]() |
![]() |
![]() |
|||||||||||
Net income |
$
|
198
|
$
|
124
|
$
|
308
|
$
|
158
|
||||||
![]() |
![]() |
![]() |
![]() |
|||||||||||
Net income per share: | ||||||||||||||
Basic |
$
|
0.49
|
$
|
0.31
|
$
|
0.76
|
$
|
0.40
|
||||||
Diluted |
0.43
|
0.31
|
0.67
|
0.40
|
||||||||||
Number of shares used in per share calculations: | ||||||||||||||
Basic |
408
|
400
|
405
|
400
|
||||||||||
Diluted |
463
|
400
|
459
|
400
|
||||||||||
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|||||||||||
(In Millions)
(Unaudited)
![]() |
Dec. 27,
2002 |
June 28,
2002 |
||||||
Assets | ||||||||
![]() |
Cash and cash equivalents |
$
|
622
|
$
|
612
|
|||
Short-term investments |
352
|
231
|
||||||
Accounts receivable, net |
628
|
614
|
||||||
Inventories |
310
|
347
|
||||||
Other current assets |
166
|
158
|
||||||
![]() |
![]() |
![]() |
||||||
![]() |
Total Current Assets |
2,078
|
1,962
|
|||||
![]() |
Property, equipment and leasehold improvements, net |
1,025
|
1,022
|
|||||
Intangible assets, net |
5
|
6
|
||||||
Other assets, net |
113
|
105
|
||||||
![]() |
![]() |
![]() |
||||||
![]() |
Total Assets |
$
|
3,221
|
$
|
3,095
|
|||
Liabilities and Shareholders' Equity | ||||||||
Accounts payable |
$
|
718
|
$
|
743
|
||||
Affiliate accounts payable |
12
|
12
|
||||||
Accrued employee compensation |
164
|
190
|
||||||
Accrued deferred compensation |
![]() |
147
|
||||||
Accrued expenses |
326
|
339
|
||||||
Accrued income taxes |
179
|
170
|
||||||
Current portion of long-term debt |
4
|
2
|
||||||
![]() |
![]() |
![]() |
||||||
![]() |
Total Current Liabilities![]() |
$
|
1,403
|
$
|
1,603
|
|||
![]() |
||||||||
Other liabilities |
98
|
102
|
||||||
Long-term debt, less current portion |
747
|
749
|
||||||
![]() |
![]() |
![]() |
||||||
![]() |
Total Liabilities![]() |
$
|
2,248
|
$
|
2,454
|
|||
![]() |
||||||||
![]() |
Shareholders' Equity |
$
|
973
|
$
|
641
|
|||
![]() |
![]() |
![]() |
||||||
Total Liabilities and Shareholders' Equity |
$
|
3,221
|
$
|
3,095
|
||||
![]() |
![]() |
![]() |