SEAGATE ANNOUNCES SECOND QUARTER RESULTS
1/11/00 1:10:00 PM
Source: PR Newswire
Global Market Share Leader Sets The Pace
For Pro Forma Profit And Unit Shipments
SCOTTS VALLEY, Calif., Jan. 11 /PRNewswire/ -- Seagate Technology, Inc. (NYSE: SEG) today reported revenue of $1.645 billion and pro forma net income and pro forma diluted net income per share of $30 million and $0.14, respectively, for its quarter ended December 31, 1999.
Stephen Luczo, Seagate President and Chief Executive Officer said, "In what continues to be a challenging business environment, Seagate posted its seventh consecutive quarter of pro forma profitability while reaching the highest productivity and efficiency in our Company's history. Our performance is attributable to our wide range of product offerings, increased key OEM market share and the benefits we have begun to realize from our Supply Chain Management and Six Sigma initiatives. Since the inception of these initiatives in Q1FY99, manufacturing throughput time has been reduced more than 55%, product per employee has increased more than 40%, and inventory turns have increased to 14.5. We believe Seagate maintained market share leadership in both the Personal and Enterprise product groups, as well as overall worldwide disc drive market share. Further, Seagate has established market share leadership in the Consumer arena with shipments approaching 1 million units to date."
On a GAAP basis, Seagate reported a net loss and net loss per share of $35 million and $0.16, respectively, for its quarter ended December 31, 1999. This includes a restructuring charge of $23 million, charges related to the Company's investment in Veritas Software Corporation ("Veritas") of $374 million and gains on sales of portions of the Company's investments in Veritas and SanDisk Corporation ("SanDisk") of $344 million and $62 million, respectively. Excluding these items, the pro forma diluted net income per share was $0.14.
For the quarter ended January 1, 1999, revenue, net income and diluted net income per share were $1.801 billion, $104 million and $0.42, respectively. For the immediately preceding quarter ended October 1, 1999, revenue was $1.682 billion and net income and diluted net income per share were $2 million and $0.01, respectively. Excluding the restructuring charge, and all items related to the Company's investment in Veritas, the pro forma diluted net income per share for the quarter ended October 1, 1999 was $0.07.
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 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 Six Months Ended
-------------------------- -----------------------
December 31, January 1, December 31, January 1,
1999 1999 1999 1999
------------ ------------ ------------ ----------
Income Statement
----------------
Revenue $ 1,645 $ 1,801 $ 3,327 $ 3,354
Gross profit 311 428 589 749
As a percent
of revenue 18.9% 23.8% 17.7% 22.3%
Income before
income taxes $ 53 $ 145 $ 52 $ 124
Provision for
income taxes 88 41 85 50
Net income (loss):
Amount $ (35) $ 104 $ (33) $ 74
As a percent
of revenue (2.1%) 5.8% (1.0%) 2.2%
Net income (loss)
per share:
Basic $ (0.16) $ 0.43 $ (0.15) $ 0.30
Diluted (0.16) 0.42 (0.15) 0.30
Number of shares
used in per share
computations:
Basic 214.8 244.9 216.7 245.0
Diluted 214.8 250.4 216.7 249.1
December 31, January 1,
1999 1999
------------ ------------
Balance Sheet
----------------
Cash, Cash Equivalents
and Short-Term
Investments $ 1,543 $ 2,217
Inventories $ 369 $ 410 |
