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Exhibit 99.1
October 10, 2000
Seagate Announces First Quarter 2001 Results
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SCOTTS VALLEY, CALIFORNIA. . . . Seagate Technology, Inc. (NYSE:SEG) today
reported revenue of $1.748 billion, pro forma net income of $62 million and pro
forma diluted net income per share of $0.26 for its quarter ended September 29,
2000.
For the same period, on a GAAP basis, Seagate reported net income of $75 million
and diluted net income per share of $0.31. The primary items included in GAAP
net income but excluded from pro forma results were gains on sales of certain
investments in equity securities including SanDisk Corporation and Veeco
Instruments, Inc., all items related to the Company's investment in Veritas
Software Corporation ("Veritas"), and restructuring charges.
For the quarter ended October 1, 1999, pro forma diluted net income per share,
which excluded restructuring charges and all items related to the Company's
investment in Veritas, was $0.07. For the same period, on a GAAP basis, revenue,
net income and diluted net income per share were $1.682 billion, $2 million and
$0.01, respectively.
For the immediately preceding quarter ended June 30, 2000, pro forma diluted net
income per share, which excluded the gains on exchange of certain equity
investments and sales of investments in equity securities, all items related to
the Company's investment in Veritas, compensation expense related to employee
separation costs, restructuring charges and unusual items, was $0.22. For the
same period, on a GAAP basis, revenue, net income and diluted net income per
share were $1.548 billion, $231 million and $0.96, respectively.
On March 29, 2000, Seagate announced the proposed transaction with Veritas and
an investor group led by Silver Lake Partners ("Silver Lake") which, if
consummated, would result in Seagate's stockholders receiving shares of Veritas
common stock and cash for their shares of Seagate common stock. We believe that
while this transaction is pending, the value of Seagate common stock will depend
primarily on the value of Veritas common stock.
Seagate is a leading provider of the Internet Infrastructure 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, Storage Area Network
(SAN) solutions and a leading developer of Business Intelligence software.
Seagate can be found around the globe and at http://www.seagate.com. For
automated news, stock and financial information by phone, dial toll-free
877-SEG-NYSE. Outside the U.S. and Canada, dial 760-704-4368.
The foregoing press release contains forward-looking statements within the
meaning of the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995. Such statements regarding the proposed transaction with
Veritas and the Silver Lake investor group are based on the current expectations
and beliefs of management at Seagate and are subject to a number of factors and
uncertainties that could cause actual results to differ materially from those
described in the forward-looking statements. Such factors could include the
failure of the transaction to close due to a failure to receive requisite
stockholder or governmental approvals, a failure to fulfill other required
closing conditions or the impact of pending litigation. For a detailed
discussion of these and other cautionary statements, please refer to the joint
proxy statement/prospectus filed by both Seagate and Veritas, as well as
Seagate's filings with the Securities and Exchange Commission, especially in the
"Factors Affecting Future Operating Results" section of the Management's
Discussion and Analysis of Financial Condition and Results of Operations section
of Seagate's Form 10-K for its fiscal year ended June 30, 2000.
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SEAGATE TECHNOLOGY, INC.
FINANCIAL HIGHLIGHTS
(In Millions Except Per Share and Percent Data)
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<CAPTION>
Three Months Ended
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September 29, October 1,
2000 1999
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<S> <C> <C>
Revenue $1,748 $1,682
Gross profit 368 278
As a percent of revenue 21.1% 16.5%
Income before income taxes $ 112 $ --
Provision (benefit) for income taxes 37 (2)
Net income:
Amount $ 75 $ 2
As a percent of revenue 4.3% 0.1%
Net income per share:
Basic $ 0.33 $ 0.01
Diluted $ 0.31 $ 0.01
Number of shares used in
per share computations:
Basic 228.2 218.6
Diluted 240.4 224.1
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<TABLE>
<CAPTION>
September 29, October 1,
2000 1999
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<S> <C> <C>
Balance Sheet
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Cash, Cash Equivalents
and Short-Term
Investments $2,351 $1,415
Inventories $ 362 $ 404
Inventory Turns 15.3 13.9
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