Seagate Technology Reports Fiscal First Quarter 2009 Results
22 Ottobre 2008 - 10:01PM
PR Newswire (US)
SCOTTS VALLEY, Calif., Oct. 22 /PRNewswire-FirstCall/ -- Seagate
Technology (NASDAQ:STX) today reported disk drive unit shipments of
48 million, revenue of $3.03 billion, net income of $60 million,
and diluted net income per share of $0.12 for the quarter ended
October 3, 2008. Net income and diluted net income per share for
the quarter includes $20 million of purchased intangibles
amortization and other charges associated with Seagate's
acquisitions, and charges related to restructuring activities of
$51 million. The net impact of these items is a $71 million
reduction to net income and a decrease of approximately $0.14 per
share on a diluted basis. Of the $51 million related to
restructuring activities, approximately $28 million was accelerated
depreciation recorded in cost of revenue and $23 million was for
severance and other closing costs recorded in restructuring. "This
quarter was marked by Seagate's measurable progress toward
regaining our longstanding product leadership position across all
markets," said Bill Watkins, Seagate chief executive officer. "With
a strong balance sheet, Seagate is operating from a position of
strength. Looking forward, in the face of a challenging
macro-economic environment, we will focus on cost controls and
inventory management while continuing to invest in the key
technologies that will solidify product leadership. As a result, we
remain highly confident in our ability to convert the long-term
growth in demand for storage into superior value for our
shareholders." Additional information relating to the financial
results for the first fiscal quarter of 2009 can be found online at
seagate.com. Business Outlook For the December quarter, Seagate
expects to report revenue of $2.85 - $3.05 billion, and diluted net
income per share of $0.12 - $0.16. Included in the December quarter
outlook is the following: -- Approximately $20 million for
purchased intangibles amortization and other charges associated
with recent acquisitions -- Approximately $7 million for
restructuring charges related to previously announced restructuring
events -- Approximately $7 million for accelerated depreciation
expenses related to the planned closing of the Pittsburgh research
facility (R&D) The net impact of these items is an estimated
reduction to net income of approximately $34 million, and an
aggregate decrease in diluted earnings per share by approximately
$0.07. The outlook does not include the impact of any future
mergers, acquisitions, dispositions or other business combinations,
stock repurchases or potential new restructuring activities the
company may undertake during the quarter. Current uncertainty in
global economic conditions makes it particularly difficult to
predict product demand and other related matters and makes it more
likely that Seagate's actual results could differ materially from
current expectations. Dividend The company has declared a quarterly
dividend of $0.12 per share to be paid on or before November 21,
2008 to all common shareholders of record as of November 7, 2008.
Conference Call Seagate will hold a conference call to review the
fiscal first quarter results at 2:00 p.m. Pacific Time today. The
conference call can be accessed online at seagate.com or by phone
as follows: USA: (877) 223-6202 International: (706) 679-3742
Conference ID: 64605834 Replay A replay will be available beginning
today at 6:00 p.m. Pacific Time through October 29 at 8:59 p.m.
Pacific Time. The replay can be accessed from seagate.com or by
phone as follows: USA: (800) 642-1687 International: (706) 645-9291
Conference ID: 64605834 About Seagate Seagate is the worldwide
leader in the design, manufacture and marketing of hard disk drives
and storage solutions, providing products for a wide-range of
applications, including Enterprise, Desktop, Mobile Computing,
Consumer Electronics and Branded Solutions. Seagate's business
model leverages technology leadership and world-class manufacturing
to deliver industry-leading innovation and quality to its global
customers, with the goal of being the time-to-market leader in all
markets in which it participates. The company is committed to
providing 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 http://www.seagate.com/.
Cautionary Note Regarding Forward-Looking Statements This press
release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. These
forward-looking statements include, but are not limited to,
statements related to the company's future operating and financial
performance, including expected revenue, net income and diluted
earnings per share, price and product competition, customer demand
for our products, and general market conditions. These
forward-looking statements are based on information available to
Seagate as of the date of this press release. Current expectations,
forecasts and assumptions involve a number of risks, uncertainties,
and other factors that could cause actual results to differ
materially from those anticipated by these forward-looking
statements. Such risks, uncertainties, and other factors may be
beyond the company's control. In particular, uncertainty in global
economic conditions pose a risk to the overall economy as consumers
and businesses may defer purchases in response to tighter credit
and negative financial news. Such risks and uncertainties also
include the impact of the variable demand and the aggressive
pricing environment for disk drives, particularly in view of
current business and economic conditions; dependence on Seagate's
ability to successfully qualify, manufacture and sell its disk
drive products in increasing volumes on a cost-effective basis and
with acceptable quality, particularly the new disk drive products
with lower cost structures; the impact of competitive product
announcements and possible excess industry supply with respect to
particular disk drive products; our ability to achieve projected
cost savings in connection with our announced restructuring plans;
and market conditions and alternative cash imperatives that could
impact our ability to repurchase additional common shares pursuant
to Seagate's previously announced share repurchase program.
Information concerning risk, uncertainties and other factors that
could cause results to differ materially from those projected in
the forward-looking statements is contained in the company's Annual
Report on Form 10-K as filed with the U.S. Securities and Exchange
Commission on August 13, 2008, which statements are incorporated
into this press release by reference. These forward-looking
statements should not be relied upon as representing the company's
views as of any subsequent date and Seagate undertakes no
obligation to update forward- looking statements to reflect events
or circumstances after the date they were made. SEAGATE TECHNOLOGY
CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited)
October 3, June 27, 2008 2008 (a) ASSETS Cash and cash equivalents
$1,005 $990 Short-term investments 148 151 Accounts receivable, net
1,393 1,410 Inventories 909 945 Deferred income taxes 272 274 Other
current assets 640 502 Total Current Assets 4,367 4,272 Property,
equipment and leasehold improvements, net 2,509 2,464 Goodwill
2,349 2,352 Other intangible assets 94 111 Deferred income taxes
616 616 Other assets, net 234 305 Total Assets $10,169 $10,120
LIABILITIES AND SHAREHOLDERS' EQUITY Accounts payable $1,930 $1,652
Accrued employee compensation 153 440 Accrued expenses, other 838
825 Accrued income taxes 6 10 Current portion of long-term debt 660
360 Total Current Liabilities 3,587 3,287 Accrued warranty 231 219
Other non-current liabilities 336 358 Long-term debt, less current
portion 1,370 1,670 Total Liabilities 5,524 5,534 Shareholders'
Equity 4,645 4,586 Total Liabilities and Shareholders' Equity
$10,169 $10,120 (a) The information in this column was derived from
the Company's audited consolidated balance sheet as of June 27,
2008. SEAGATE TECHNOLOGY CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (In millions, except per share data) (Unaudited) For the
Three Months Ended October 3, September 28, 2008 2007 Revenue
$3,033 $3,285 Cost of revenue 2,508 2,476 Product development 260
242 Marketing and administrative 148 153 Amortization of
intangibles 14 13 Restructuring, net 23 5 Total operating expenses
2,953 2,889 Income from operations 80 396 Interest income 7 16
Interest expense (30) (32) Other, net (13) (5) Other income
(expense), net (36) (21) Income before income taxes 44 375
Provision for (benefit from) income taxes (16) 20 Net income $60
$355 Net income per share: Basic $0.12 $0.67 Diluted 0.12 0.64
Number of shares used in per share calculations: Basic 485 531
Diluted 494 560 SEAGATE TECHNOLOGY CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (In millions) (Unaudited) For the Three
Months Ended October 3, September 28, 2008 2007 OPERATING
ACTIVITIES Net income $60 $355 Adjustments to reconcile net income
to net cash from operating activities: Depreciation and
amortization 253 205 Stock-based compensation 27 29 Deferred income
taxes 2 8 Other non-cash operating activities, net (13) 7 Changes
in operating assets and liabilities: Accounts receivable 16 (133)
Inventories 36 31 Accounts payable 278 250 Accrued expenses,
employee compensation and warranty (309) (2) Other assets and
liabilities (46) 4 Net cash provided by operating activities 304
754 INVESTING ACTIVITIES Acquisition of property, equipment and
leasehold improvements (280) (150) Purchases of short-term
investments (90) (198) Maturities and sales of short-term
investments 93 119 Proceeds from sale of investment in equity
securities 10 - Acquisitions, net of cash acquired - (6) Other
investing activities, net 2 (3) Net cash used in investing
activities (265) (238) FINANCING ACTIVITIES Proceeds from exercise
of employee stock options and employee stock purchase plan 35 62
Dividends to shareholders (59) (54) Repurchases of common shares -
(249) Net cash used in financing activities (24) (241) Increase in
cash and cash equivalents 15 275 Cash and cash equivalents at the
beginning of the period 990 988 Cash and cash equivalents at the
end of the period $1,005 $1,263 DATASOURCE: Seagate Technology
CONTACT: Media Relations, Brian Ziel, +1-831-439-5429, , or
Investor Relations, Rod Cooper, +1-831-439-2371, , both of Seagate
Technology Web site: http://www.seagate.com/
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