Jun 30, 1995

Seagate Announces Record Fourth-Quarter and Year-End Results

Seagate Technology, Inc. (NYSE:SEG) today reported record revenue, net income and fully diluted net income per share of $4.54 billion, $260 million and $3.06, respectively, for its fiscal year ended June 30, 1995. This compares with revenue, net income and fully diluted net income per share of $3.50 billion, $225 million and $2.83, respectively, for the year ended July 1, 1994. The results for the year ended June 30, 1995 include one time write-offs of in-process research and development totaling $70 million incurred in connection with the acquisitions of several software companies, including those discussed below. Without the write-offs of in-process research and development and their related tax effects, fully diluted net income per share would have been $3.89 for the fiscal year ended June 30, 1995.

For the quarter ended June 30, 1995 the Company reported record revenue, net income and fully diluted net income per share of $1.29 billion, $88 million and $1.02, respectively. This compares with revenue, net income and fully diluted net income per share of $1 billion, $79 million and $0.93, respectively, for the quarter ended July 1, 1994. The results for the quarter ended June 30, 1995 include a one time write-off of in-process research and development of $15 million incurred in connection with the acquisitions of Frye Computer Systems, Inc. and Creative Interaction Technologies, Inc., developers of network management software products and solutions. Without the write-off of in-process research and development and its related tax effects, fully diluted net income per share would have been $1.20 for the quarter ended June 30, 1995.

Seagate Technology is a data technology company that provides products for storing, managing and accessing digital information on the world's computer and data communications systems. Seagate, at more than $4.5 billion in revenue for its fiscal year ended June 30, 1995, is the largest independent disc drive and components company in the world.

SEAGATE TECHNOLOGY, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In Thousands Except Per Share Data)
(Unaudited)


                                 Three Months Ended         

                              June 30,	      July 1,	
                               1995		      1994        
                              _______		_______	
			
Net Sales                    $1,292,279        $1,001,065   
Cost of sales                 1,015,963         784,724	
Product development              63,723          45,315	
Marketing and administrative     68,179          59,650	
Amortization of goodwill
 and other intangibles            8,016           3,177       
In-process research and            
 development                      4,580         --          
                              _________         _________   
Total Operating Expenses      1,170,461         892,866     

Income from Operations          121,818         108,199     

Interest income                  18,422          13,361      
Interest expense                 (8,562)         (7,848)	
Other                             1,884            (492)     
                              _________         _________   
 Other Income                    11,744           5,021       
                              _________         _________   
		
Income before income taxes	133,562		113,220	
Provision for income taxes	45,551		33,966	
                              _________         _________   
 Net Income                   $  88,011         $  79,254   
                              =========         =========   
Net income per share:

 Primary                      $     1.19        $     1.07  
 Fully diluted                      1.02              0.93  

Number of shares used
 in per share computations:

 Primary                          73,874          74,346	
 Fully diluted                    90,815          90,941	



                                   Year Ended (1)

                               June 30,          July 1,
                               1995              1994
                               _______		 _______
			
Net Sales                     $4,539,570        $3,500,103
Cost of sales                  3,607,661         2,795,821
Product development              220,024           171,907
Marketing and administrative     245,811           208,694
Amortization of goodwill
 and other intangibles            23,092            12,724
In-process research and      
 development                      70,360            --	
                               _________         _________
Total Operating Expenses       4,166,948         3,189,146

Income from Operations           372,622           310,957

Interest income                   65,560            37,191
Interest expense                 (32,966)          (26,339)
Other                              4,123              (223)
                               _________         _________
 Other Income                     36,717            10,629
                               _________         _________
		
Income before income taxes       409,339           321,586
Provision for income taxes       149,257            96,476
                               _________         _________
 Net Income                    $ 260,082         $ 225,110
                               =========         =========
Net income per share:

 Primary                     $     3.52        $     3.08
 Fully diluted                     3.06              2.83

Number of shares used
 in per share computations:

 Primary                         73,839            73,064
 Fully diluted                   91,474            85,012

  1. Information in these columns was derived from the Company's audited consolidated financial statements for the fiscal years ended June 30, 1995 and July 1, 1994.

					June 30,	July 1
					1995 (1)	1994 (1)
					_________	_________
ASSETS	
Cash and cash equivalents		$ 702,194	$  804,717
Short-term investments			44,432		528,825
Accounts receivable			567,747		392,231
Inventories				395,838		342,537
Deferred income taxes			127,769		95,784
Other current assets			106,906		82,351
					__________	___________
  Total Current Assets			2,444,886	2,246,445
					__________	___________
Property, equipment and leasehold
 improvements, net			615,251		415,038
Goodwill and other intangibles, net	189,328		126,395
Other assets				111,797		89,652
					__________	___________
  Total Assets				$3,361,262	$ 2,877,530
					=========	==========


LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $ 460,213 $ 363,709 Accrued employee compensation 112,988 83,843 Accrued expenses 251,696 190,377 Accrued income taxes 74,288 64,687 Current portion of long-term debt 10,561 168 __________ ___________ Total Current Liabilities 909,746 702,784 __________ ___________ Deferred income taxes 244,731 218,801 Other liabilities 125,143 78,054 Long-term debt, less current portion 539,874 549,492 __________ ___________ Total Liabilities 1,819,494 1,549,131 Shareholders' Equity 1,541,768 1,328,399 __________ ___________ Total Liabilities and Shareholders' Equity $3,361,262 $ 2,877,530 ========= =========
  1. Information in the above consolidated condensed balance sheets was derived from the Company's audited consolidated financial statements as of June 30, 1995 and July 1, 1994.

SEAGATE TECHNOLOGY, INC
FINANCIAL HIGHLIGHTS
(In Thousands Except Per Share and Percent Data)
(Unaudited)

                    Three Months Ended         Year Ended (1)
                    ------------------         --------------
                  June 30,       July 1,    June 30,     July 1,
                    1995          1994        1995        1994
                  ---------    ---------    ---------    ---------

Net sales        $1,292,279   $1,001,065   $4,539,570  $ 3,500,103

Gross profit        276,316      216,341      931,909      704,282

As a percent
 of sales              21.4%        21.6%        20.5%        20.1%

Income before
 income taxes    $  133,562   $  113,220   $  409,339  $   321,586

Provision for
 income taxes        45,551       33,966      149,257       96,476

Net income:

Amount           $   88,011   $   79,254   $  260,082  $   225,110

As a percent
 of sa1es               6.8%         7.9%         5.7%         6.4%

Net income
 per share:

  Primary        $     1.19   $     1.07   $     3.52  $      3.08

  Fully diluted        1.02         0.93         3.06         2.83

Number of shares
 used in
 per share
 computations:

  Primary            73,874       74,346       73,839       73,064

  Fully diluted      90,815       90,941       91,474       85,012

Pro forma net
 income per
 share without
 write-off of
 in-process
 research and
 development: (2)

   Primary       $     1.40   $     1.07   $     4.55  $      3.08

   Fully diluted       1.20         0.93         3.89         2.83


  1. Information in these columns was derived from the Company's audited consolidated financial statements for the fiscal years ended June 30, 1995 and July 1, 1994.
  2. These amounts reflect what primary and fully diluted net income per share would have been without the write-offs of in-process research and development and their related tax effects that occurred in fiscal year 1995.