Seagate Announces FY99 Fourth Quarter Results - Seagate Technology's 4th qtr 1999 - Company Financial Information

Edge: Work-Group Computing Report, July 19, 1999

Seagate Technology, Inc. (NYSE:SEG) Thursday reported net income and diluted net income per share of $1.02 billion and $4.11, respectively, for the quarter ended ended July 2, 1999. Excluding all items related to the May 28, 1999 transaction whereby Seagate contributed its NSMG business to a newly formed company combining NSMG with Veritas Software Corporation, net income and diluted net income per share were $69 million and $0.30, respectively for the quarter ended July 2, 1999.

Revenue for the quarter ended July 2, 1999 was $1.643 billion compared with $1.805 billion for the immediately preceding quarter ended April 2, 1999 and $1.575 billion for the comparable year ago period ended July 3, 1998. Revenue for the years ended July 2, 1999 and July 3, 1998 was $6.8 billion for each of the two years.

On May 28, 1999, the Company contributed its NSMG business and related assets and liabilities to a newly formed company combining this business with that of Veritas Software Corporation in exchange for approximately 69.1 million shares, adjusted for the recent two-for-one stock split, or forty-two percent (42%) of the new Company. As a result of this transaction, the Company received shares having a then market value of $3.05 billion and recorded a pre-tax gain of $1.67 billion, net of certain related one-time charges of $136 million.

Net income and diluted net income per share for the comparable year-ago quarter were $22 million and $0.09, respectively, and $82 million and $0.34, respectively, for the immediately preceding quarter.

For the year ended July 2, 1999, net income and diluted net income per share were $1.176 billion and $4.53, respectively, compared with a loss of $530 million or $2.17 per share, respectively, for the year ago period ended July 3, 1998.

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 information when, where and how they want it. Seagate is the world's largest manufacturer of disc drives, magnetic discs and read-write heads, an innovator in tape drives, and a leading developer of Enterprise Information Management software. Seagate can be found around the globe and at http://www.seagate.com.

                       SEAGATE TECHNOLOGY, INC.
                         FINANCIAL HIGHLIGHTS
            (In Millions Except Per Share and Percent Data)


                    Three Months Ended          Year Ended
               -------------------------- -----------------------
                  July 2,       July 3,      July 2,     July 3,
                   1999          1998         1999        1998
               ------------  ------------ ------------ ----------

Income Statement
----------------

Revenue           $ 1,643      $ 1,575      $ 6,802      $ 6,819

Gross profit          369          299        1,552          989

  As a percent
  of revenue         22.5%        19.0%        22.8%        14.5%

Income (loss) before
income taxes      $ 1,645      $    30    $ 1,873      $  (704)

Provision (benefit)
for income taxes      625            8          697         (174)

Net income (loss):

  Amount          $ 1,020    $    22      $ 1,176      $  (530)

  As a percent
  of revenue         62.1%         1.4%        17.3%        (7.8%)

Net income (loss)
 per share:
  Basic           $  4.53      $  0.09      $  4.94      $ (2.17)
  Diluted            4.11         0.09         4.53        (2.17)

Number of shares
used in per share
computations:
  Basic             224.9        244.2        237.9        243.6
  Diluted           230.2        247.1        243.1        243.6


                  July 2,       July 3,
                   1999          1998
               ------------  ------------

Balance Sheet
----------------

Cash, Cash Equivalents
and Short-Term
Investments       $ 1,623       $ 1,827

Inventories           451           508

Inventory Turns      11.3          10.1