Seagate Announces Third Quarter Results
Business Wire - April 14, 1998 16:17
SCOTTS VALLEY, Calif.--(BUSINESS WIRE)--April 14, 1998--Seagate Technology, Inc. (NYSE:SEG) today reported revenue of $1.68 billion and a net loss and net loss per share of $129 million and $0.53 respectively, for its quarter ended April 3, 1998. Excluding the restructuring charge of $141.9 million and special charges of $23.8 million and the tax effects related to these items, the pro forma net loss would have been $0.10 per share.
The restructuring charges taken last quarter and this quarter 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 this quarter include inventory and equipment valuation adjustments and vendor liability charges.
For the quarter ended March 28, 1997, revenue, net income and diluted net income per share were $2.50 billion, $257 million and $1.01 respectively. Excluding special charges of $16.3 million for one time write-offs of in-process research and development and compensation expense in connection with the acquisition of Holistic Systems Ltd., and other special charges of $8.0 million and the tax effects related to these items, diluted net income per share for the three months ended March 28, 1997 would have been $1.07. For the immediately preceding quarter ended January 2, 1998, revenue was $1.67 billion with a net loss and net loss per share of $183 million and $0.75, respectively. 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 and the tax effects related to these items, the pro forma net loss per share for the quarter ended January 2, 1998 would have been $0.08.
The decrease in revenue from 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 nine months ended April 3, 1998, revenue was $5.24 billion and net loss and net loss per share were $552 million and $2.27, respectively. This compares with revenue, net income and diluted net income per share of $6.96 billion, $599 million and $2.38, respectively, for the nine months ended March 28, 1997.
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.
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 want 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. With over $7 billion in revenue for the last twelve months, Seagate can be found around the globe and on the World Wide Web at seagate.com.
SEAGATE TECHNOLOGY, INC.
FINANCIAL HIGHLIGHTS
(In Thousands Except Per Share and Percent Data)
Three Months Ended Nine Months Ended
---------------------- ----------------------
April 3, March 28, April 3, March 28,
1998 1997 (1) 1998 1997 (1)
---------- ---------- --------- ----------
Revenue $1,675,026 $2,501,823 $5,243,860 $6,962,804
Gross profit 203,569 630,834 689,962 1,565,109
As a percent
of revenue 12.2% 25.2% 13.2% 22.5%
Income(loss) before
income taxes $ (200,625) $ 356,597 $ (734,002) $ 831,543
Provision(benefit)
for income taxes (72,110) 99,847 (182,098) 232,832
Net income(loss):
Amount $ (128,515) $ 256,750 $ (551,904) $ 598,711
As a percent
of revenue (7.7%) 10.3% (10.5%) 8.6%
Net income(loss)
per share:
Basic $ (0.53) $ 1.04 $ (2.27) $ 2.62
Diluted (0.53) 1.01 (2.27) 2.38
Number of shares
used in per share
computations:
Basic 242,566 246,528 243,418 228,881
Diluted 242,566 255,298 243,418 258,840
(1) The three and nine months ended March 28, 1997 have been restated
to reflect per share information in accordance with Statement of
Financial Accounting Standards No. 128, "Earnings per Share," which
was required to be adopted by the Company during its fiscal quarter
ended January 2, 1998.
CONTACT: SEAGATE, Scotts Valley
Alan F. Shugart, CEO
Charles C. Pope, CFO
Julie Still, Press Relations
Nancy Hamm, Investor Relations
408/438-6550 |
