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Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: DJBEINO who wrote (7292)	6/29/1999 11:37:00 AM
From: Tae Spam Kim	Read Replies (1) \| Respond to of 7841

Seagate Warns Q4 - 11:15 AM EST - TK Seagate (SEG) warned yesterday that revenue for Q4 will fall short by $100 million relative to Q3. The company cited pricing pressures by competitors as the primary reason for the shortfall. Seagate needs to focus on its premium value-added products like the 10,000 rpm Cheetah or new UDMA/66 drives to bring itself out low-end commodity hell. Seagate said it sees revenue from all disk drive products about $100 million, or 6 percent below third-quarter results. The fourth-quarter shortfall doesn't bode well for upcoming quarters either. The "extremely aggressive pricing environment" for desktop disk drive products will hurt first-quarter earnings as well, Seagate said. Deutsche Banc Alex. Brown analyst Michael Carboy sliced his rating on Seagate's stock to "buy" from "strong buy," saying that aggressive average selling prices for the company's low-cost U4 disk drive triggered "carpet bombing" by competitors, further destabilizing the market. Carboy also cut his fourth-quarter earnings estimates to 35 cents a share from 54 cents, and fiscal 2000 to $1.40 from $2.50. Seagate is slated to report fourth-quarter results July 15 after the market closes. - CBS Marketwatch