Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: DJBEINO who wrote (4025)	11/6/1997 7:57:00 PM
From: emichael	Respond to of 7841

Full article Date: Thu, 6 Nov 1997 16:35:15 -0800 (PST) SCOTTS VALLEY, Calif. -(Dow Jones)- Seagate Technology Inc. said Thursday it has settled a lawsuit brought by Amstrad PLC, and expects to reduce a previously recorded charge by $22 million as a result. Seagate announced the settlement after the market closed Thursday. The Scotts Valley, Calif.-based company said the settlement costs were reflected in the company's fourth-quarter earnings report released in July. The reduction will be accounted for in the second quarter, which ends Jan. 2. Fourteen 14 analysts conducted by First Call are looking for Seagate to earn 28 cents a share in the second quarter. In May, a British court sided with Amstrad in a lawsuit that alleged Seagate - a dominant maker of disk drives - produced faulty drives. The drives resulted in a recall of Amstrad personal computers that damaged the company's reputation and prevented it from penetrating the market for business computers. Amstrad, once one of Europe's leading PC builders, ordered nearly 57,000 Seagate disk drives in 1988 and 1989 for use in its machines. Amstrad alleged that the drives had flaws that included the inability to retrieve data under some circumstances. Amstrad sued Seagate in December 1992. Seagate said in July that fourth-quarter net income fell 41% to $59.3 million or 23 cents a share. That jarring drop was exacerbated by a charge of $153 million in connection with Amstrad judgment and $2.5 million in restructuring charges. Without those special items, Seagate said its net would have been 61 cents a share, five cents lower than the First Call mean estimate. Copyright (c) 1997 Dow Jones & Company, Inc. All Rights Reserved.