Repost: Seagate Tech. Inc. to Report 2nd Fiscal Quarter Loss and Larger Restructuring Charges
PR Newswire - January 07, 1998 17:20
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SCOTTS VALLEY, Calif., Jan. 7 /PRNewswire/ -- Seagate Technology, Inc.
(NYSE: SEG) today announced that due to continued pricing pressure and
weakness in demand for its disc drives, it will not meet its previous
expectation of marginal profitability for its second fiscal quarter ended
January 2, 1998. Revenues from drive operations were significantly less than
previously anticipated and are currently estimated to be approximately
$1.5 billion for the quarter. Total revenues for the quarter are estimated to
be approximately $1.65 billion.
The company currently expects to report a substantial loss from operations
prior to restructuring, inventory write-downs and other one-time charges.
These charges, as previously noted by the company, relate to Seagate's plan to
align worldwide operations with current market conditions. Restructuring and
other one-time charges, exclusive of any inventory write-downs, are now
expected to be in excess of $300 million, of which approximately $250 million
will be a second quarter fiscal 1998 charge. The balance of the restructuring
charges will be taken in the company's third fiscal 1998 quarter.
Seagate expects to report its second quarter fiscal 1998 financial results
on Tuesday, January 20, 1998, after the close of the market.
This release contains forward-looking statements relating to the company's
business, pricing, earnings outlook, restructuring, inventory write-downs and
other one-time charges. These forward-looking statements are based on current
expectations and entail various risks and uncertainties that could cause
actual results to differ materially from those projected in the
forward-looking statements. These risks and uncertainties include, but are
not limited to, competitive factors, pricing environment, the extent to which
facilities and equipment are determined to be excess or unusable for
alternative operations of the company, severance costs to be incurred, the
nature and amount of inventory write-downs and other reserve requirements.
Seagate undertakes no obligation to update forward-looking statements to
reflect events or circumstances after the date thereof.
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 their
information when, where and how they need it. Seagate is the world's largest
manufacturer of disc drives, magnetic discs and read-write heads, a market
leader in tape drives, and a leading developer of software for information
availability, access and analysis. Seagate can be found around the globe and
on the World Wide Web at seagate.com.
SOURCE Seagate Technology, Inc.
/CONTACT: Donald L. Waite, EVP, CAO, CFO, 408-439-2216, or media, Julie
Still, 408-439-2276, or Woody Monroy, 408-439-2838, or investors, Nancy Hamm
408-439-2371, all of Seagate Technology/
/Web site: seagate.com
(SEG)
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