Exhibit 99.1
Press Release | Investor Relations Contact: Rod Cooper (831.439.2371) rod.cooper@seagate.com | |
Media Relations Contact: Brian Ziel (831.439.5429) brian.ziel@seagate.com |
SEAGATE TECHNOLOGY REPORTS FISCAL THIRD QUARTER 2003 RESULTS
SCOTTS VALLEY, CA – April 15, 2003 – Seagate Technology (NYSE: STX) today reported revenue of $1.62 billion, net income of $174 million, and diluted earnings per share of $0.37 for the quarter ended March 28, 2003, compared to $1.69 billion, $193 million, and $0.45, respectively, in the year-ago quarter.
For the nine-month period ended March 28, 2003, Seagate reported revenue of $4.93 billion, net income of $481 million, and diluted earnings per share of $1.04, compared to $4.61 billion, $351 million and $0.85, respectively, for the nine months ended March 29, 2002.
The company shipped 16.6 million disc drives in the third fiscal quarter, reflecting an increase of 1.6 million units over the year-ago quarter. This includes approximately 4.6 million disc drives shipped on the 80GB/disc platform. The company expects OEMs still qualifying the 80GB/disc platform will complete qualification during the June quarter, and by the end of the June quarter substantially all of the company’s personal storage shipments will be on this platform.
“Seagate’s competitive advantages in the data storage marketplace, particularly our vertically integrated supply chain, drove solid financial results in what is a seasonally down quarter,” said Steve Luczo, chairman and chief executive officer. “We continue to meet market challenges with leading technology, reliability and production flexibility which are defining characteristics of Seagate’s leadership position. These enable us to offer a broad line of products that can be ramped up, qualified and shipped to meet quickly and cost-efficiently the changing needs of our customers in a dynamic market. We successfully ramped production of our 80GB/disc platform and expect continued progress in the upcoming quarter.”
Consistent with its quarterly dividend policy, Seagate’s board of directors has declared a quarterly cash distribution of $0.03 per share to be paid on or before May 23, 2003 to all common shareholders of record as of May 9, 2003.
Analyst and Investor Meeting
Seagate’s senior management team will host a meeting for analysts and investors on Thursday, May 1, 2003. More information regarding this event and a link to the live webcast can be found atwww.seagate.com.
Conference Call
Seagate Technology will hold a conference call to review the third quarter results at 2:00 p.m. Pacific Time on April 15, 2003. The live webcast of the conference call can be accessed online at www.seagate.com. A replay of the call will be available beginning April 15 at 5:30 p.m. Pacific Time through April 22 at 11:59 p.m. Pacific Time. The replay can be accessed from www.seagate.com or by telephone as follows:
USA: 800-475-6701
International: 320-365-3844
Access code: 680315
About Seagate
Seagate is the worldwide leader in the design, manufacturing and marketing of hard disc drives for Enterprise, PC and Consumer Electronics applications. The company is committed to delivering award-winning products, customer support and reliability, to meet the world’s growing demand for information storage. Seagate can be found around the globe and at www.seagate.com.
This release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances. Actual results may vary materially from the expectations contained in the forward-looking statements. All statements contained in this release that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intends” and similar expressions are generally intended to identify forward-looking statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risks in our ability to introduce, qualify, manufacture, and sell new products on a timely and cost-effective basis, the impact of changes in general world and domestic economic conditions in light of the military conflict in Iraq, the impact on operations and demand, particularly in the Far East, of the SARS outbreak, as well as other factors described in Seagate’s Report on Form 10Q for the quarter ended December 27, 2002 and its Registration Statement on Form S-1, each as filed with the Securities and Exchange Commission. The company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the company’s estimates or views as of any subsequent date.
# # #
SEAGATE TECHNOLOGY
FINANCIAL HIGHLIGHTS
(In millions, except per share data)
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, 2003 | March 29, 2002 | March 28, 2003 | March 29, 2002 | |||||||||||||
Statement of Operations Data | ||||||||||||||||
Revenue | $ | 1,620 |
| $ | 1,691 |
| $ | 4,933 |
| $ | 4,614 |
| ||||
Gross profit |
| 434 |
|
| 511 |
|
| 1,299 |
|
| 1,246 |
| ||||
As a percent of revenue |
| 26.8 | % |
| 30.2 | % |
| 26.3 | % |
| 27.0 | % | ||||
Income before income taxes | $ | 180 |
| $ | 214 |
| $ | 495 |
| $ | 403 |
| ||||
Provision for income taxes |
| 6 |
|
| 21 |
|
| 14 |
|
| 52 |
| ||||
Net Income: | ||||||||||||||||
Amount | $ | 174 |
| $ | 193 |
| $ | 481 |
| $ | 351 |
| ||||
As a percent of revenue |
| 10.7 | % |
| 11.4 | % |
| 9.8 | % |
| 7.6 | % | ||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.41 |
| $ | 0.48 |
| $ | 1.17 |
| $ | 0.88 |
| ||||
Diluted |
| 0.37 |
|
| 0.45 |
|
| 1.04 |
|
| 0.85 |
| ||||
Number of shares used in per share calculations: | ||||||||||||||||
Basic |
| 429 |
|
| 401 |
|
| 413 |
|
| 400 |
| ||||
Diluted |
| 476 |
|
| 429 |
|
| 465 |
|
| 411 |
| ||||
SEAGATE TECHNOLOGY
FINANCIAL HIGHLIGHTS
(Dollars In Millions)
March 28, 2003 | March 29, 2002 | |||||
Balance Sheet Data | ||||||
Cash, Cash Equivalents and Short-Term Investments | $ | 1,076 | $ | 1,103 | ||
Accounts Receivable, net | $ | 657 | $ | 703 | ||
Days Sales Outstanding |
| 37 |
| 38 | ||
Inventories | $ | 301 | $ | 315 | ||
Inventory Turns |
| 15.8 |
| 15.0 | ||
Capital Expenditures (3 months) | $ | 136 | $ | 90 | ||
SEAGATE TECHNOLOGY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Millions, Except Per Share Data)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||
March 28, 2003 | March 29, 2002 | March 28, 2003 | March 29, 2002 | |||||||||||||
Revenue | $ | 1,620 |
| $ | 1,691 |
| $ | 4,933 |
| $ | 4,614 |
| ||||
Cost of revenue |
| 1,186 |
|
| 1,180 |
|
| 3,634 |
|
| 3,368 |
| ||||
Product development |
| 167 |
|
| 177 |
|
| 496 |
|
| 492 |
| ||||
Marketing and administrative |
| 85 |
|
| 97 |
|
| 276 |
|
| 302 |
| ||||
Amortization of intangibles |
| — |
|
| 5 |
|
| — |
|
| 15 |
| ||||
Restructuring costs, net |
| — |
|
| 4 |
|
| 7 |
|
| 4 |
| ||||
Total Operating Expenses |
| 1,438 |
|
| 1,463 |
|
| 4,413 |
|
| 4,181 |
| ||||
Income from Operations |
| 182 |
|
| 228 |
|
| 520 |
|
| 433 |
| ||||
Interest income |
| 4 |
|
| 6 |
|
| 12 |
|
| 21 |
| ||||
Interest expense |
| (11 | ) |
| (19 | ) |
| (36 | ) |
| (61 | ) | ||||
Other, net |
| 5 |
|
| (1 | ) |
| (1 | ) |
| 10 |
| ||||
Other Income (Expense), net |
| (2 | ) |
| (14 | ) |
| (25 | ) |
| (30 | ) | ||||
Income before income taxes |
| 180 |
|
| 214 |
|
| 495 |
|
| 403 |
| ||||
Provision for income taxes |
| 6 |
|
| 21 |
|
| 14 |
|
| 52 |
| ||||
Net Income | $ | 174 |
| $ | 193 |
| $ | 481 |
| $ | 351 |
| ||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.41 |
| $ | 0.48 |
| $ | 1.17 |
| $ | 0.88 |
| ||||
Diluted |
| 0.37 |
|
| 0.45 |
|
| 1.04 |
|
| 0.85 |
| ||||
Number of shares used in per share calculations: | ||||||||||||||||
Basic |
| 429 |
|
| 401 |
|
| 413 |
|
| 400 |
| ||||
Diluted |
| 476 |
|
| 429 |
|
| 465 |
|
| 411 |
| ||||
SEAGATE TECHNOLOGY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Millions)
(Unaudited)
March 28, 2003 | June 28, 2002 | |||||
ASSETS | ||||||
Cash and cash equivalents | $ | 679 | $ | 612 | ||
Short-term investments |
| 397 |
| 231 | ||
Accounts receivable, net |
| 657 |
| 614 | ||
Inventories |
| 301 |
| 347 | ||
Other current assets |
| 162 |
| 158 | ||
Total Current Assets |
| 2,196 |
| 1,962 | ||
Property, equipment and leasehold improvements, net |
| 1,062 |
| 1,022 | ||
Intangible assets, net |
| 5 |
| 6 | ||
Other assets, net |
| 119 |
| 105 | ||
Total Assets | $ | 3,382 | $ | 3,095 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
Accounts payable | $ | 709 | $ | 743 | ||
Affiliate accounts payable |
| 3 |
| 12 | ||
Accrued employee compensation |
| 179 |
| 190 | ||
Accrued deferred compensation |
| — |
| 147 | ||
Accrued expenses |
| 319 |
| 339 | ||
Accrued income taxes |
| 179 |
| 170 | ||
Current portion of long-term debt |
| 4 |
| 2 | ||
Total Current Liabilities |
| 1,393 |
| 1,603 | ||
Other liabilities |
| 98 |
| 102 | ||
Long-term debt, less current portion |
| 745 |
| 749 | ||
Total Liabilities |
| 2,236 |
| 2,454 | ||
Shareholders’ Equity |
| 1,146 |
| 641 | ||
Total Liabilities and Shareholders’ Equity | $ | 3,382 | $ | 3,095 | ||
