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

To: Anthony Wong who wrote (6656)	1/12/1999 11:13:00 PM
From: gmccon	Read Replies (2) \| Respond to of 7841

Thanks Anthony. Do I understand correctly then that the .41 cents includes the one time $1.25Billon?

To: Anthony Wong who wrote (6656)	1/13/1999 7:51:00 AM
From: Anthony Wong	Read Replies (2) \| Respond to of 7841

Wednesday January 13, 6:23 am Eastern Time Seagate expects improved earnings in Q3 By Alicia Seow SINGAPORE, Jan 13 (Reuters) - Dominant disk drive maker Seagate Technology Inc said on Wednesday it hopes to see improved earnings in the third quarter, ending April 1. ''We would expect to be able to continue to see some operating improvements that would...hopefully,translate into some incremental earnings improvement,'' Chief Financial Officer Charles Pope told reporters in a teleconference from California. For the second quarter ended January 1, net income jumped to $104 million compared with a loss of $183 million in the previous year. Seagate's revenue rose to $1.80 billion from $1.67 billion for the same periods. ''Demand (for disk drives) continues to be strong,'' Pope said. Traditionally, there was a slowdown in demand for disk drives in the period between Christmas and the New Year but it was not the case this year, he said. ''That strength has continued on into this quarter and so we would expect a comparable type of result this quarter,'' Pope added. Seagate's earnings of 42 cents per share for the most recent period easily surpassed the consensus estimate carried by the research service First Call, which forecast a 26 cent per share net income. ''The area of strength that we saw this quarter was most noticeable in Europe and it was a very broad based type of strength,'' Pope said, adding the strength could exist for a while. Europe accounted for 39 percent of the group's revenue, up slightly from the 35 percent posted in the previous quarter. ''North America for Seagate did not keep pace with the revenue growth in the rest of the world but Asia-Pacific did, and our expectations are that they would continue in about those proportions,'' Pope said. North America contributed 46 percent in the second quarter, down from the 50 percent contributed in the first quarter, while Pacific Rim revenues were 15 percent in each of the two quarters, he said. Pope said he would not characterise the fall in contribution as a weakness in the American market but that sales in Europe outpaced North America. ''There was good growth in terms of absolute dollars in the North American market,'' he added. Asked if the sale of Network and Storage Management Group (NSMG) of Seagate Software, a unit of Seagate, to Veritas Software Corp (Nasdaq:VRTS - news) would affect Seagate's results, Pope said it would be minimal. ''Even though you take out the NSMG revenue and margin, you add in the minority income associated with Veritas and the bottomline should remain unchanged or slightly positive,'' he said. The deal, valued at roughly $1.6 billion, was expected to be completed this month. -- Singapore newsroom (65)870-3086; Fax (65)776-8112 -- E-mail: singapore.newsroom@reuters.com biz.yahoo.com