Oct 21, 2003
"One of Seagate's primary strategies is to profitably develop and supply reliable, industry-leading products to every major hard drive market," said Steve Luczo, Seagate chairman and chief executive officer. "The company continued to successfully execute on this strategy, producing strong financial and operational results, achieving significant milestones and seizing growth opportunities despite a dynamic competitive environment.
"During the September quarter we extended our lead in the personal storage market, which includes desktop and consumer electronics applications, and maintained the top position in the enterprise space. We introduced a 100GB/platter drive and a Seagate branded external hard drive for the retail market and are better positioned to supply the growing demand for storage-intensive PC and consumer applications. Momentus, our new notebook drive, has been well received by our OEM customers -- shipping 312,000 units during the September quarter. We recently qualified two new top tier OEMs and we're confident in our ability to meet or exceed our goal of 10% market share as we exit the June 2004 quarter.
"This quarter's performance underscores Seagate's ability to produce excellent operating results in a fast-moving, technically complex and highly competitive hard disc drive marketplace while supporting our long-term focus on sustainable value creation and market leadership."
Financial Review
Dividend Information
The company has declared a quarterly cash distribution of $0.04
per share to be paid on or before November 21, 2003 to all common
shareholders of record as of November 7, 2003.
Conference Call
Seagate Technology will hold a conference call to review the fiscal first quarter 2004 results at 2:00 p.m. Pacific Time today. The live webcast of the conference call can be accessed online at www.seagate.com/newsinfo/invest/. A replay of the call will be available beginning today at 5:00 p.m. Pacific Time through October 28 at 8:59 p.m. Pacific Time. The replay can be accessed from www.seagate.com/newsinfo/invest/ or by telephone as follows:
USA: (800) 642-1687
International: (706) 645-9291
Access code: 2590429
For more information please visit the financial information page.
About Seagate
Seagate is the worldwide leader in the design, manufacturing and marketing of hard disc drives, providing products for a wide range of Enterprise, PC, Notebook 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.
This release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are made in good faith by the company pursuant to the Safe Harbor Provision of the Act. These forward-looking statements involve known and unknown risks, uncertainties and changes in circumstances, which may cause the company's actual results to differ materially from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include a variety of factors, some of which are beyond the company's control. In particular, such risks and uncertainties include the variable demand and the aggressive pricing environment for disc drives, particularly in the summer months; the company's and its competitors' ability to introduce, qualify, manufacture in volume and sell new products on a timely and cost-effective basis; competitive factors such as the impact of consolidation within the industry and the potential for excess supply; and the impact on operations or demand, particularly in Asia, of a reoccurrence of SARS. Information concerning additional factors that could cause results to differ materially from those projected in the forward-looking statements is contained in the company's Registration Statement on Form S-1 as filed with the U.S. Securities and Exchange Commission on June 27, 2003. These forward-looking statements should not be relied upon as representing the company's views as of any subsequent date and Seagate undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made.
For further information, contact:
Rod Cooper, Investor Relations
831.439.2371 rod.cooper@seagate.com
Brian Ziel, Media Relations
831.439.5429 brian.ziel@seagate.com
Seagate Technology
920 Disc Drive
Scotts Valley, CA 95066
831-438-6550
Seagate Technology Condensed Consolidated Statement of Operations |
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(In millions, except per share amounts) |
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Three Months Ended
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||||||
October 3,
2003 |
Sept. 27,
2002 |
||||||
Revenue |
$
|
1,740
|
$
|
1,579
|
|||
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|||||||
Cost of revenue |
1,272
|
1,207
|
|||||
Product development |
169
|
160
|
|||||
Marketing and administrative |
78
|
86
|
|||||
Restructuring costs, net |
11
|
7
|
|||||
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||
Total Operating Expenses |
$
|
1,530
|
$
|
1,460
|
|||
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||||||
Income from operations |
$
|
210
|
$
|
119
|
|||
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|||||||
Interest income |
4
|
4
|
|||||
Interest expense | (12) | (12) | |||||
Other, net | (1) | 2 | |||||
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||
Other Income (Expense), net |
$
|
(9)
|
$
|
(6)
|
|||
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||||||
Income before income taxes |
$
|
201
|
$
|
113
|
|||
Provision for income taxes |
3
|
3
|
|||||
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||||
Net income |
$
|
198
|
$
|
110
|
|||
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||||||
Net income per share: | |||||||
Basic |
$
|
0.44
|
$
|
0.27
|
|||
Diluted |
0.40
|
0.24
|
|||||
Number of shares used in per share calculations: | |||||||
Basic |
445
|
402
|
|||||
Diluted |
499
|
456
|
|||||
Seagate Technology Condensed Consolidated Balance Sheet |
||||||||
(In millions) (Unaudited) |
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October 3,
2003 |
June 27,
2003 (a) |
||||||
Assets | ||||||||
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Cash and cash equivalents |
$
|
834
|
$
|
749
|
|||
Short-term investments |
515
|
445
|
||||||
Accounts receivable, net |
708
|
611
|
||||||
Affiliate accounts receivable |
6
|
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||||||
Inventories |
349
|
319
|
||||||
Other current assets |
174
|
158
|
||||||
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||||
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Total Current Assets |
2,586
|
2,282
|
|||||
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||||||||
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Property, equipment and leasehold improvements, net |
1,090
|
1,111
|
|||||
Other assets |
138
|
124
|
||||||
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||||
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Total Assets |
$
|
3,814
|
$
|
3,517
|
|||
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||||||||
Liabilities and Shareholders' Equity | ||||||||
Accounts payable |
$
|
759
|
$
|
640
|
||||
Affiliate accounts payable |
![]() |
11
|
||||||
Accrued employee compensation |
153
|
217
|
||||||
Accrued expenses |
345
|
312
|
||||||
Accrued income taxes |
180
|
179
|
||||||
Current portion of long-term debt |
4
|
4
|
||||||
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||||
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Total Current Liabilities![]() |
$
|
1,441
|
$
|
1,363
|
|||
![]() |
||||||||
Other liabilities |
86
|
93
|
||||||
Long-term debt, less current portion |
743
|
745
|
||||||
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||||
![]() |
Total Liabilities![]() |
$
|
2,270
|
$
|
2,201
|
|||
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||||||||
Shareholders' Equity |
$
|
1,544
|
$
|
1,316
|
||||
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![]() |
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||||
![]() |
Total Liabilities and Shareholders' Equity |
$
|
3,814
|
$
|
3,517
|
|||
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(a) The information in this column was derived from the Company's audited consolidated balance sheet as of June 27, 2003. |