Seagate Announces Third Fiscal Quarter 2001 Results

Apr 26, 2001, 01:00 ET from Seagate

    SCOTTS VALLEY, Calif., April 26 /PRNewswire/ -- Seagate and its affiliated
 companies (the "Company") today reported consolidated revenue of $1.574
 billion, pro forma net income of $57 million and pro forma EBITDA of $163
 million for its quarter ended March 30, 2001.
     During the quarter ended December 29, 2000, an investor group led by
 Silver Lake Partners completed the acquisition of substantially all of the
 operating businesses of Seagate Technology, Inc.  The consolidated condensed
 statements of operations for the nine months ended March 30, 2001 include
 the combined results of the Company from November 23, 2000, the date of the
 acquisition, to March 30, 2001 with the results of its predecessor, Seagate
 Technology, Inc., from July 1, 2000 through November 22, 2000.
     The pro forma results for the quarter ended March 30, 2001 exclude
 restructuring charges of $54 million.  For the same period on a GAAP basis,
 the Company reported net income of $24 million.
     For the quarter ended March 31, 2000, pro forma net income of Seagate
 Technology, Inc. was $46 million.  This excluded restructuring charges, in-
 process research and development charges related to the acquisition of XIOtech
 Corporation, a gain on the sale of a portion of Seagate Technology,
 Inc.'s previously held investment in SanDisk, and all items related to Seagate
 Technology, Inc.'s previously held investment in VERITAS Software Corporation
 ("VERITAS").  On a GAAP basis, Seagate Technology, Inc. reported net income of
 $136 million for the quarter ended March 31, 2000.
     For the immediately preceding quarter ended December 29, 2000, pro forma
 net income was $68 million and pro forma EBITDA was $259 million.  The pro
 forma results excluded transaction- related charges, which included a write-
 off of in-process research and development, as well as losses on sales of
 certain investments in equity securities, the loss on the sale of operating
 assets to New SAC, and all items related to Seagate Technology, Inc.'s
 previously held investment in VERITAS.  The operating results for the quarter
 ended December 29, 2000 included the combined results of the Company
 from November 23, 2000, the date of the acquisition, to December 29, 2000 with
 the results of its predecessor, Seagate Technology, Inc., from October 1, 2000
 through November 22, 2000. On a GAAP basis, the Company reported a combined
 net loss of $1.791 billion.
     Seagate and its affiliated companies are controlled by New SAC, a Cayman
 Island limited liability company, organized in late 2000 to acquire the hard
 disc drive and storage solutions business, the tape drive business, the
 software business and certain other assets of Seagate Technology, Inc.  These
 businesses include: Seagate Technology (which includes hard disc drives and
 XIOtech Corp.), Seagate Removable Storage Solutions, and Crystal Decisions
 (formerly known as Seagate Software).  The acquisition closed on November 22,
 2000.
 
 
                       SEAGATE AND ITS AFFILIATED COMPANIES
                               FINANCIAL HIGHLIGHTS
                                  (In Millions)
 
                          Three Months Ended        Nine Months Ended
                      -------------------------- -----------------------
                        March 30,     March 31,    March 30,   March 31,
                          2001         2000 (2)     2001 (1)    2000 (2)
                      ------------  ------------ ------------ ----------
 
     Statement of Operations Data
     ----------------------------
 
     Revenue             $ 1,574      $ 1,573      $ 5,040      $ 4,900
 
     Gross profit            410          361          850        1,022
 
       As a percent
       of revenue           26.0%        22.9%        16.9%        20.9%
 
     Income (loss) before
     income taxes        $    17      $   285      $(1,755)     $   298
 
     Provision for
     (benefit from)
     income taxes             (7)         149          (62)         219
 
     Net Income (Loss):
 
       Amount            $    24      $   136      $(1,693)     $    79
 
       As a percent
       of revenue            1.5%         8.6%       (33.6)%        1.6%
 
 
 
 
                       SEAGATE AND ITS AFFILIATED COMPANIES
                           FINANCIAL HIGHLIGHTS (CONT'D)
                                  (In Millions)
 
                                      March 30,      March 31,
                                        2001          2000 (2)
                                    -------------  ------------
     Balance Sheet Data
     ------------------
 
     Cash, Cash Equivalents
       and Short-Term
       Investments                   $   966         $ 1,890
 
     Accounts Receivable                 699             761
 
     Days Sales Outstanding               40              44
 
     Inventories                         416             334
 
     Inventory Turns                    11.2            15.0
 
     Capital Expenditures
          (3 months)                      92             111
 
     Net Working Capital (Deficit) (3)  (151)            (13)
 
 
     (1) Represents the operating results of the Company combined with the pre-
 closing results of the Company's predecessor, Seagate Technology, Inc.
     (2) Derived from the financial statements of the Company's predecessor,
 Seagate Technology, Inc.
     (3) Net working capital represents total current assets, excluding cash,
 cash equivalents and short-term investments, less total current liabilities,
 excluding short-term borrowings and current maturities of long-term debt.
 
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SOURCE Seagate
    SCOTTS VALLEY, Calif., April 26 /PRNewswire/ -- Seagate and its affiliated
 companies (the "Company") today reported consolidated revenue of $1.574
 billion, pro forma net income of $57 million and pro forma EBITDA of $163
 million for its quarter ended March 30, 2001.
     During the quarter ended December 29, 2000, an investor group led by
 Silver Lake Partners completed the acquisition of substantially all of the
 operating businesses of Seagate Technology, Inc.  The consolidated condensed
 statements of operations for the nine months ended March 30, 2001 include
 the combined results of the Company from November 23, 2000, the date of the
 acquisition, to March 30, 2001 with the results of its predecessor, Seagate
 Technology, Inc., from July 1, 2000 through November 22, 2000.
     The pro forma results for the quarter ended March 30, 2001 exclude
 restructuring charges of $54 million.  For the same period on a GAAP basis,
 the Company reported net income of $24 million.
     For the quarter ended March 31, 2000, pro forma net income of Seagate
 Technology, Inc. was $46 million.  This excluded restructuring charges, in-
 process research and development charges related to the acquisition of XIOtech
 Corporation, a gain on the sale of a portion of Seagate Technology,
 Inc.'s previously held investment in SanDisk, and all items related to Seagate
 Technology, Inc.'s previously held investment in VERITAS Software Corporation
 ("VERITAS").  On a GAAP basis, Seagate Technology, Inc. reported net income of
 $136 million for the quarter ended March 31, 2000.
     For the immediately preceding quarter ended December 29, 2000, pro forma
 net income was $68 million and pro forma EBITDA was $259 million.  The pro
 forma results excluded transaction- related charges, which included a write-
 off of in-process research and development, as well as losses on sales of
 certain investments in equity securities, the loss on the sale of operating
 assets to New SAC, and all items related to Seagate Technology, Inc.'s
 previously held investment in VERITAS.  The operating results for the quarter
 ended December 29, 2000 included the combined results of the Company
 from November 23, 2000, the date of the acquisition, to December 29, 2000 with
 the results of its predecessor, Seagate Technology, Inc., from October 1, 2000
 through November 22, 2000. On a GAAP basis, the Company reported a combined
 net loss of $1.791 billion.
     Seagate and its affiliated companies are controlled by New SAC, a Cayman
 Island limited liability company, organized in late 2000 to acquire the hard
 disc drive and storage solutions business, the tape drive business, the
 software business and certain other assets of Seagate Technology, Inc.  These
 businesses include: Seagate Technology (which includes hard disc drives and
 XIOtech Corp.), Seagate Removable Storage Solutions, and Crystal Decisions
 (formerly known as Seagate Software).  The acquisition closed on November 22,
 2000.
 
 
                       SEAGATE AND ITS AFFILIATED COMPANIES
                               FINANCIAL HIGHLIGHTS
                                  (In Millions)
 
                          Three Months Ended        Nine Months Ended
                      -------------------------- -----------------------
                        March 30,     March 31,    March 30,   March 31,
                          2001         2000 (2)     2001 (1)    2000 (2)
                      ------------  ------------ ------------ ----------
 
     Statement of Operations Data
     ----------------------------
 
     Revenue             $ 1,574      $ 1,573      $ 5,040      $ 4,900
 
     Gross profit            410          361          850        1,022
 
       As a percent
       of revenue           26.0%        22.9%        16.9%        20.9%
 
     Income (loss) before
     income taxes        $    17      $   285      $(1,755)     $   298
 
     Provision for
     (benefit from)
     income taxes             (7)         149          (62)         219
 
     Net Income (Loss):
 
       Amount            $    24      $   136      $(1,693)     $    79
 
       As a percent
       of revenue            1.5%         8.6%       (33.6)%        1.6%
 
 
 
 
                       SEAGATE AND ITS AFFILIATED COMPANIES
                           FINANCIAL HIGHLIGHTS (CONT'D)
                                  (In Millions)
 
                                      March 30,      March 31,
                                        2001          2000 (2)
                                    -------------  ------------
     Balance Sheet Data
     ------------------
 
     Cash, Cash Equivalents
       and Short-Term
       Investments                   $   966         $ 1,890
 
     Accounts Receivable                 699             761
 
     Days Sales Outstanding               40              44
 
     Inventories                         416             334
 
     Inventory Turns                    11.2            15.0
 
     Capital Expenditures
          (3 months)                      92             111
 
     Net Working Capital (Deficit) (3)  (151)            (13)
 
 
     (1) Represents the operating results of the Company combined with the pre-
 closing results of the Company's predecessor, Seagate Technology, Inc.
     (2) Derived from the financial statements of the Company's predecessor,
 Seagate Technology, Inc.
     (3) Net working capital represents total current assets, excluding cash,
 cash equivalents and short-term investments, less total current liabilities,
 excluding short-term borrowings and current maturities of long-term debt.
 
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 SOURCE  Seagate