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

To: xamir who wrote (4561)	1/20/1998 4:41:00 PM
From: Sam	Read Replies (1) \| Respond to of 7841

Anyone have the Conference Call number and passcode? I'm a glutton for punishment. Here is the press release: Seagate Announces Second Quarter Results SCOTTS VALLEY, Calif.--(BUSINESS WIRE)--Jan. 20, 1997--Seagate Technology, Inc. (NYSE:SEG - news) today reported revenue of $1.67 billion and a net loss and net loss per share of $183 million and $0.75 respectively, for its quarter ended January 2, 1998. Excluding the restructuring charge of $205.5 million, special charges of $71.5 million and a $22 million reduction in the $153 million charge previously recorded for settlement of the Amstrad litigation, which was recorded in the Company's fourth quarter of fiscal 1997, and the tax effects related to these items, the pro forma net loss would have been $0.08 per share. The restructuring charges reflect steps the Company is taking to align worldwide operations with current market conditions and to improve the productivity of its operations and the efficiency of its development efforts. The special charges include inventory write-offs, vendor liabilities and a $12.8 million charge for mark-to-market adjustments on certain of the Company's foreign currency forward exchange contracts. The inventory write-offs and vendor liability charges are primarily related to the transition to the Company's next generations of disc drive products. Significant additional restructuring and other special charges which could not be accrued in the second fiscal quarter will be taken as a charge in the Company's third fiscal quarter ending April 3, 1998. For the quarter ended December 27, 1996, revenue, net income and diluted net income per share were $2.40 billion, $213 million and $0.84 respectively. For the immediately preceding quarter ended October 3, 1997, revenue was $1.90 billion with a net loss and net loss per share of $240 million and $0.98, respectively. Without the $216 million write-off of in-process research and development primarily related to the Quinta acquisition and the $63 million mark-to-market adjustments on certain foreign currency forward exchange contracts and their related tax effects, pro forma diluted net income per share for the quarter ended October 3, 1997 would have been $0.08. The decrease in revenue from both the immediately preceding quarter and the year ago quarter and the resultant pro forma net loss for the quarter were due primarily to increased competition resulting in significant price decreases and continuing weakness in demand for the Company's disc drive products. For the six months ended January 2, 1998, revenue was $3.57 billion and net loss and net loss per share were $423 million and $1.74, respectively. This compares with revenue, net income and diluted net income per share of $4.46 billion, $342 million and $1.38, respectively, for the six months ended December 27, 1996. In the quarter ended January 2, 1998, the Company adopted Statement of Financial Accounting Standards No. 128, ''Earnings per Share.'' All prior periods have been restated accordingly. This release contains forward-looking statements relating to restructuring and special 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, the extent to which facilities and equipment are determined to be excess or unusable for alternative operations of the Company, the amount of 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.