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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: Moonray who wrote (11395)	1/7/1998 10:57:00 PM
From: jhild	Read Replies (1) \| Respond to of 22053

Asia may not be the problem so much tomorrow as more warnings from the tech sector. Another SEG warning, only this time not pretty at all. After ATML today, these things are beginning to mount up. SCOTTS VALLEY, Calif., Jan. 7 (Reuters) - Seagate Technology Inc. said Wednesday it will report a substantial operating loss in its second quarter due to severe pricing pressure and weaker than expected disk drive demand. The world's largest disk drive maker had already warned in November it expected a shortfall for the quarter, and it said Wednesday it expects to report restructuring and other charges of $250 million for the quarter ended Jan. 2. "Revenues from (disk) drive operations were significantly less than previously anticipated and are currently estimated to be approximately $1.5 billion for the quarter," the company said in a statement. Total revenues, which include software, service and support, aree projected to be $1.65 billion, it said. That compares with $2.4 billion a year ago. Even after Seagate's earlier warning, analysts had expected the disk drive maker to earn 3 cents a share for the second quarter, down from 84 cents a share a year ago. Seagate made the announcement after the market close. Earlier, shares of Seagate fell $1.3125 to close at $20.5625 in New York Stock Exchange trading. All three of the top disk drive makers -- Seagate, Quantum Corp. QNTM.O and Western Digital Corp. -- have sent out distress signals in recent weeks as a glut on the market for disk drives has sent prices into a tailspin. SEG.N WDC.N REUTERS Rtr 18:53 01-07-98 Copyright 1998, Reuters News Service