Jan 09, 2003

Seagate Technology Announces Second Fiscal Quarter 2003 Results

Seagate Technology (NYSE:STX)(the "Company"), today reported record shipments of 18.3 million disc drives for the second quarter of its fiscal year 2003. The Company reported consolidated revenue of $1.734 billion, net income of $198 million and diluted net income per share of $0.43 for its quarter ended December 27, 2002.

"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.

 

 

 

Seagate Technology
Financial Highlights

(In Millions, except per share amounts)
(Unaudited)

Three Months Ended
 
Six Months Ended
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
 

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
 

For further information, contact:

Rod Cooper, Investor Relations
Brian Ziel, Media Relations

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

Seagate Technology
Condensed Consolidated Statement of Operations

(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  
  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
 
           

Seagate Technology
Condensed Consolidated Balance Sheet

(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