Seagate Technology Reports Fiscal Fourth Quarter And Year-End 2007 Results

Seagate Technology Reports Fiscal Fourth Quarter And Year-End 2007 Results

Seagate Technology (NYSE: STX) today reported disc drive unit shipments of 39.2 million, revenue of $2.74 billion, GAAP net income of $541 million, and diluted net income per share of $0.96 for the quarter ended June 29, 2007. Net income and diluted net income per share includes approximately $27 million of purchased intangibles amortization and other charges associated with the Maxtor and EVault acquisitions. Excluding these charges, non-GAAP net income and diluted net income per share were $568 million and $1.01.

For the twelve months ended June 29, 2007 Seagate reported disc drive unit shipments of 159.2 million, revenue of $11.4 billion, GAAP net income of $913 million and diluted net income per share of $1.56. GAAP net income and diluted net income per share includes approximately $241 million of purchased intangibles amortization and other charges associated with the Maxtor and EVault 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 $1.17 billion and $2.00.

Included in both the GAAP and non-GAAP net income for the June quarter and fiscal year 2007 are the following non-operating items: a benefit of $359 million that reflects a favorable adjustment to the valuation allowance related to Seagate’s deferred tax assets; a charge of $29 million associated with ongoing restructuring; and a $4 million write-off of an equity investment that is reflected in other income and expense.

“Our results for the year as a whole as well as for this quarter demonstrate the continued strength of the digital storage industry and the positive impact of several important strategic steps we have taken to secure and extend our industry leadership,” said Bill Watkins, Seagate chief executive officer. “We continue to lead the industry in technology and launch innovative new products into all markets, including industry-leading high capacity products. Our market share is growing, our revenue and shipment numbers are unmatched in the industry, and we remain excited about the growth opportunities ahead of us.”

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