SEAGATE TECHNOLOGY REPORTS FISCAL THIRD QUARTER 2007 RESULTS
Released on = April 20, 2007, 4:20 am
Press Release Author = SEAGATE
Industry = Computers
Press Release Summary = Seagate Technology (NYSE: STX) today reported revenue of $2.8 billion, GAAP net income of $212 million, and diluted net income per share of $0.37 for the quarter ended March 30, 2007. Net income and diluted net income per share includes approximately $62 million of charges associated with recent acquisitions. Excluding these charges, non-GAAP net income and diluted net income per share were $274 million and $0.47.
Press Release Body = NEW DELHI, INDIA - April 20, 2007 - Seagate Technology (NYSE: STX) today reported revenue of $2.8 billion, GAAP net income of $212 million, and diluted net income per share of $0.37 for the quarter ended March 30, 2007. Net income and diluted net income per share includes approximately $62 million of charges associated with recent acquisitions. Excluding these charges, non-GAAP net income and diluted net income per share were $274 million and $0.47.
For the nine months ended March 30, 2007 Seagate reported revenue of $8.6 billion, GAAP net income of $371 million and diluted net income per share of $0.62. Net income and diluted net income per share include charges of approximately $219 million associated with recent acquisitions and $19 million for the early retirement of the 8% notes. Excluding these charges, non-GAAP net income and diluted net income per share were $609 million and $1.02.
"We are disappointed in our results for the March quarter," said Bill Watkins, Seagate chief executive officer. "We clearly miscalculated the market, and in this unusually challenging environment failed to deliver the projected results. However, it is worth noting that the fundamentals of our business and that of the industry remain solid. Seagate's revenue remained strong, our balance sheet is healthy, and we continued to generate cash for ongoing investments in the capital and R&D required for growth. We are operating at the kind of scale that will allow us to continue to innovate while driving down costs, and thus exercise a great deal of market flexibility. Moving forward, we will align spending with the current outlook, and continue to drive the cost improvements necessary to thrive in this environment." Adjustments made to GAAP net income and diluted net income per share can be found with the financial statements included with this press release. Additional information relating to the financial results for the third fiscal quarter of 2007 can be found online at seagate.com.
Business Outlook For fiscal year 2007, Seagate now expects $11.3 - $11.4 billion in revenue and $0.92 - $0.96 GAAP diluted net income per share. Including Maxtor's operating result but excluding approximately $247 million of expected acquisition related costs, and $19 million of fees associated with the early redemption of the 8% notes, non-GAAP diluted net income per share is expected to fall within the range of $1.37 - $1.41.
For the June quarter, Seagate expects to report revenue of $2.65 - $2.75 billion, and GAAP diluted net income per share of $0.29 - $0.33. Excluding approximately $28 million of expected acquisition related costs, Non-GAAP diluted net income per share for the June quarter is expected to fall within the range of $0.34 - $0.38.
This guidance does not include the impact of any future acquisitions, stock repurchases or restructuring activities the company may undertake.
Dividend and Stock Repurchase The company has declared a quarterly dividend of $0.10 per share to be paid on or before May 18, 2007 to all common shareholders of record as of May 4, 2007.
During the quarter ended March 30, 2007, the company took delivery of approximately 22.6 million of its common shares related to its share repurchase plan. The average price of the shares delivered to the company in the March quarter was $26.26. The company has authorization to purchase approximately $1.175 billion of additional shares under the current stock repurchase program.
About Seagate Seagate is the worldwide leader in the design, manufacture and marketing of hard disc drives, 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, and to be the low cost producer 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 www.seagate.com.
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