vSeagate Announces FY2000 First Quarter Results
SCOTTS VALLEY, Calif., Oct 12, 1999 (BUSINESS WIRE) -- Seagate
Technology, Inc. (NYSE: SEG) today reported revenue of $1.682 billion
and net income and diluted net income per share of $2 million and
$0.01, respectively, for its quarter ended October 1, 1999. This
includes a restructuring charge of $112 million, other charges related
to the Company's investment in Veritas Software Corporation ("Veritas")
of $102 million, and a gain on the sale of a portion of the Company's
investment in Veritas of $193 million. Excluding the restructuring
charge, the other charges related to the Company's investment in
Veritas, and the gain on sale of Veritas stock, the pro forma diluted
net income per share was $0.07.
For the quarter ended October 2, 1998, revenue, net loss and net loss
per share were $1.553 billion, $30 million and $0.12, respectively.
Excluding the $77 million charge in connection with an amendment to the
purchase agreement for the August 1997 acquisition of Quinta
Corporation and a $7 million charge related to the separation agreement
with the Company's former Chief Executive Officer, pro forma diluted
net income per share for the quarter ended October 2, 1998 was $0.19.
For the immediately preceding quarter ended July 2, 1999, revenue was
$1.643 billion and net income and diluted net income per share were
$1.02 billion and $4.11, respectively. Excluding all items related to
the contribution of the Company's NSMG business to Veritas, the pro
forma diluted net income per share for the quarter ended July 2, 1999
was $0.30.
During the quarter ended October 1, 1999, the Company acquired
approximately 21.3 million shares of its common stock for approximately
$639 million. The repurchase of a portion of these shares completed the
June 1997 stock repurchase program as amended in February 1999. The
remainder of the shares were repurchased under an April 1999 amendment
to the program in which up to an additional 25 million shares of the
Company's common stock may be acquired in the open market.
Seagate Technology, Inc. is a leading provider of technology and
products enabling people to store, access, and manage information. The
Company is committed to providing best-in-class products to help people
get information when, where and how they want it. Seagate is the
world's largest manufacturer of disc drives, magnetic discs and
read-write heads, an innovator in tape drives, and a leading developer
of business intelligence software. Seagate can be found around the
globe and on the World Wide Web at seagate.com. For
automated news, stock and financial information by phone, dial
toll-free 877-SEG-NYSE. Outside the U.S. and Canada, dial 760/704-4368.
SEAGATE TECHNOLOGY, INC.
FINANCIAL HIGHLIGHTS
(In Millions, Except Per Share and Percent Data)
Three Months Ended
--------------------------
October 1, October 2,
1999 1998
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Revenue $ 1,682 $ 1,553
Gross profit 278 321
As a percent of revenue 16.5% 20.7%
Income (loss) before income taxes $ - $ (21)
Provision (benefit) for income taxes (2) 9
Net income (loss):
Amount $ 2 $ (30)
As a percent of revenue 0.1% (1.9%)
Net income (loss) per share:
Basic $ 0.01 $ (0.12)
Diluted 0.01 (0.12)
Number of shares used in
per share computations:
Basic 218.6 245.0
Diluted 224.1 245.0
October 1, October 2,
1999 1998
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Balance Sheet
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Cash, Cash Equivalents
and Short-Term Investments $ 1,415 $ 1,874
Inventories $ 404 $ 461
Inventory Turns 13.9 10.7
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