Seagate Technology Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Seagate Technology

STX 288.00

-2.0%

Nov 11 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mozingo who wrote (7333)	10/13/1999 4:12:00 PM
From: DJBEINO	Read Replies (1) of 7841

Seagate Technology (SEG - $31.38 @ 8:00am EDT, 10/13/99) 1-1 (Outperform-Outperform) Seagate reports better than expected revenue for Q1FY00 with record number of drives shipped Seagate beats the number and reports market share gains It is becoming more obvious that Seagate is gaining share at the expense of competitors. CEO Steve Luczo commented several ways that the pace of change is benefiting Seagate. We have heard that certain capacity points may be on allocation in the fourth quarter, although excess capacity still exists industry-wide. While it may be early, these are the signs of a changing cycle. Stabilizing pricing would further indicate a changed cycle. We have also heard of price increases at certain capacity points, but average unit price declines have not confirmed this as a trend. DSOs decreasing from 48 to 44 and inventory turns increasing form 11.3 to 13.9. Seagate's use of vertical integration and asset efficiency is becoming a competitive advantage in the disk drive space. We are still amazed that the market is not paying attention to the distribution lock that Seagate gained recently. Seagate continues to gain market share while competing on price at the low-end as effectively as any in the business. The difference is that Seagate is profitable on operations. The follow-on product to the U4, the U8, is targeted toward the sub-$1000 PC market, has been qualified by 12 of the top 14 OEMs. The $112 million restructuring charge, although fully recognized in this quarter has not been completely implemented, but will result in approximately $81 million in annual savings. The restructuring so far has led to the production of 25% more drives with 27% fewer employees, and a reduction in capex by 35%. David Takata (GRUNTAL )

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next