Oct 10, 2002

Seagate Technology Holdings Announces First Fiscal Quarter 2003 Results

SCOTTS VALLEY, Calif. - Seagate Technology Holdings (the "Company"), today reported record shipments of 16.7 million disc drives for the first quarter of its fiscal year 2003. The Company reported consolidated revenue of $1.579 billion and net income, on a GAAP basis, of $110 million, for its quarter ended September 27, 2002.

Excluding one-time net restructuring charges of $7 million, the Company reported net income of $117 million and EBITDA of $226 million for the quarter ended September 27, 2002.

"Seagate delivered excellent first quarter results as we continued to strengthen our competitive position through time-to-market product leadership and operational efficiencies. Our leadership position is a result of our continuing commitment to investing in technology and the success of a wide variety of process improvement programs during the last few years, including Six Sigma, Supply Chain Management and advanced manufacturing through our Factory of the Future initiative," said Steve Luczo, chief executive officer.

For the year-ago quarter ended September 28, 2001, consolidated revenue was $1.294 billion, net income was $34 million and EBITDA was $132 million.

For the immediately preceding quarter ended June 28, 2002, the Company reported revenue of $1.473 billion and a net loss, on a GAAP basis, of $198 million. Excluding one-time charges, net income was $94 million and EBITDA was $223 million. The one-time charges consisted of deferred compensation charges of $179 million and debt refinancing charges of $93 million.

A conference call will take place on Thursday, October 10, 2002 at 2:00 PM Pacific Time, to discuss the first quarter results.
The conference call can be accessed as follows:

Dial-in numbers:
888-276-9995 (domestic)
612-288-0337 (international)

A digital replay will be available from 45 minutes after the end of the conference call through October 14, 2002 at 5:00 p.m. The replay numbers and access code are as follows:

800-475-6701 (domestic)
320-365-3844 (international)
Access code: 652102

The Company will broadcast the conference call live over the Internet. A replay will be available from the web site from 45 minutes after the end of the webcast through October 14, 2002 at 5:00 p.m. To access the webcast go to www.seagate.com.

A copy of this press release and related attachments are available here.

Seagate Technology Holdings ("Seagate") is a worldwide leader in the design, manufacturing, and marketing of hard disc drives. Seagate owns the hard disc drive and storage area networks businesses of New SAC, a company formed in November 2000 to acquire the these businesses, the tape drive business, the software business and other assets of Seagate Technology, Inc. Seagate can be found around the globe at www.seagate.com.

SEAGATE TECHNOLOGY HOLDINGS
FINANCIAL HIGHLIGHTS
(In Millions)
 
Three Months Ended
 
Statement of Operations Data
Spacer Image
September 27,
2002
September 28,
2001
 
 
Spacer Image Spacer Image Spacer Image Spacer Image Spacer Image    
Revenue
$
1,579
$
1,294
   
Gross profit
$
372
$
298
   
As a percent of revenue
 
23.6%
 
23.0%
   
Income before income taxes
$
113
$
40
   
Provision for income taxes
$
3
$
6
   
Net Income:
Amount
$
110
$
34
   
As a percent of revenue
 
7.0%
 
2.6%
   
SEAGATE TECHNOLOGY HOLDINGS
FINANCIAL HIGHLIGHTS
(In Millions)
Balance Sheet Data
Spacer Image
September 27,
2002
September 28,
2001
   
Spacer Image      
Cash, Cash Equivalents and Short-term Investments
$
801
$
880
   
Accounts Receivable, net
$
668
$
601
   
Days Sales Outstanding
 
38
 
42
   
Inventories
$
291
$
324
   
Inventory Turns
 
16.6
 
12.3
   
Capital Expenditures (3 months)
$
98
$
103
   

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