Jul 17, 2002
Excluding one-time charges, the Company reported net income of $94 million and EBITDA of $223 million for the quarter ended June 28, 2002. The one-time charges included deferred compensation charges of $179 million and debt refinancing charges of $93 million.
In May 2002, the Company paid $32 million to participants in the Company's deferred compensation plan and in June 2002 accrued the remaining obligations under the plan of $147 million, for a total charge in the quarter ended June 28, 2002 of $179 million.
Additionally, in May 2002, the Company refinanced all of its outstanding indebtedness. This consisted of repurchasing the Company's $210 million principal amount 12-1/2% senior subordinated notes, issuing $400 million principal amount 8% senior notes, repaying $673 million under the Company's senior secured credit facilities and incurring $350 million of debt under a new senior secured credit facility. These refinancing activities resulted in charges of $93 million in the quarter ended June 28, 2002 consisting primarily of a premium paid in connection with the repurchase of the Company's 12-1/2% senior subordinated notes and the write-off of capitalized debt issuance costs.
For the year-ago quarter ended June 29, 2001, consolidated revenue was $1.214 billion and net income, on a GAAP basis, was $7 million. Excluding one-time charges, the Company reported net income of $19 million and EBITDA of $90 million. The one-time charges consisted of restructuring charges of $12 million.
For the current year ended June 28, 2002, the Company reported consolidated revenue of $6.087 billion and net income, on a GAAP basis, of $153 million. Excluding one-time charges, the Company reported net income of $449 million and EBITDA of $962 million. The one-time charges included deferred compensation charges of $179 million, debt refinancing charges of $93 million and restructuring charges of $4 million.
A conference call will take place on Wednesday, July 17, 2002 at 2:00 PM Pacific Time, to discuss the fourth quarter results. The conference call can be accessed as follows:
Dial-in numbers:
888-276-0007 (domestic)
612-338-1917 (international)
A digital replay will be available from 45 minutes after the end of the conference call through July 24, 2002. The replay numbers and access code are as follows:
800-475-6701 (domestic)
320-365-3844 (international)
Access code: 643530
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 July 24, 2002. 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 AND ITS AFFILIATED COMPANIES | ||||
Three Months Ended | Fiscal Year Ended | |||
June 28, 2002 | June 29, 2001 | June 28, 2002 | June 29, 2001 (1) | |
Statement of Operations Data | ||||
Revenue | $ 1,473 | $ 1,214 | $ 6,087 | $ 5,966 |
Gross profit | 348 | 253 | 1,593 | 1,007 |
As a percent of revenue | 23.6% | 20.8% | 26.2% | 16.9% |
Income (loss) before income taxes | $ (164) | $ 4 | $ 239 | $(719) |
Provision for (benefit from) income taxes | $ 34 | $(3) | $86 | $(197) |
Net Income (Loss): | ||||
Amount | $(198) | $ 7 | $153 | $ (522) |
As a percent of revenue | (13.4)% | 0.6% | 2.5% | (8.7)% | (1) Represents the operating results of the Company combined with the pre-closing results of the Company's predecessor, the rigid disc drive and storage area networks businesses of Seagate Technology, Inc. |
SEAGATE AND ITS AFFILIATED COMPANIES | ||||
June 28, 2002 | June 29, 2001 | |||
Balance Sheet Data | $843 | $ 909 | ||
Accounts Receivable, net | 614 | 539 | ||
Days Sales Outstanding | 38 | 40 | ||
Inventories | 347 | 322 | ||
Inventory Turns | 13.0 | 11.9 | ||
Capital Expenditures (3 months) | 215 | 130 |
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