Seagate Warns Of Lower Profits (Again)
(11/18/97; 8:00 p.m. EST)
By Kora McNaughton, TechInvestor
Seagate's quarterly profit warnings have become something of a ritual in technology finance, and the disk-drive maker did not disappoint this time around.
Late Tuesday afternoon, long after the market had closed, Seagate reiterated its intention to review its operations and restructure as necessary. Last month, Seagate said costs related to the restructuring could be as high as $100 million, but the outlook is even more dire now, as the company expects the charges to exceed that amount.
As a result, Seagate will not meet Wall Street's profit expectations for its second quarter, which ends Jan. 2, 1998.
"The company believes it will be marginally profitable for the quarter before any such charges," Seagate said in a statement.
The Street expects profits of 24 cents per share, according to First Call.
The blame lies - where else? -- at the feet of weakening demand and pricing pressure for high performance products.
Shares of Scotts Valley, Calif.-based Seagate [SEG] closed down 1 1/16 to 24 5/16 in trading before the announcement. |
