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

To: William Epstein who wrote (7003)	3/4/1999 6:05:00 PM
From: Duker	Read Replies (1) \| Respond to of 7841

Full Story: Seagate sees no Dell impact, stands by fin'l views NEW YORK, March 4 (Reuters) - Seagate Technology Inc. (NYSE:SEG - news), a leading maker of computer disk drives, said nothing had changed in its business outlook following Dell Computer Corp.'s (Nasdaq:DELL - news) deal to buy computer components from IBM. Phil Montero, a Seagate spokesman, said Dell's agreement -- to buy up to $16 billion in supplies, including storage systems, from IBM (NYSE:IBM - news) over the next seven years -- was not expected to interupt Seagate's own business supplying Dell. He said Dell, the world's top direct seller of personal computers, remained a key customer of Seagate's enterprise storage systems, but accounted for less than 5 percent of total Seagate revenues of $6.8 billion last year. ''For us, nothing is really changing as a result,'' Montero said of Dell's deal with International Business Machines Inc, which was announced earlier Thursday. ''We are not revising any forecasts with analysts,'' he said. IBM has agreed to supply components it manufactures to Dell, including not just storage systems, but computer chips, network attachments and monitors. IBM is the top supplier of disk drives used in Dell notebook computers and a leading supplier of drives for Dell desktop PCs. Montero was responding to comments by Wall Street analysts who saw the deal as a blow to Seagate's enterprise storage business with Dell. For example, Pipper Jafray analyst Ashok Kumar said during a conference call with investors broadcast over the Internet Thursday afternoon that ''this could be negative for Seagate.'' He also saw the deal as potentially negative for Toshiba Corp and Maxtor Corp. (Nasdaq:MXTR - news). All are suppliers to Dell. A recent survey of Wall Street analysts by First Call Inc. projected Seagate to earn an average of $1.59 per share in 1999, growing to $2.38 per share in 2000, and up from the bare 1 cent profit it eeked out in 1998, during an industy downturn. Seagate, which fell by as much as $2.56 following news of the Dell-IBM pact, bounced back half-way in late afternoon composite U.S. stock exchange trading to $28.25, down $1.37 on the day. IBM stock was up $4.50 to $171.25 in late trading.