Seagate Technology Reports Fiscal Fourth Quarter and Year-End 2006 Results

Seagate Technology Reports Fiscal Fourth Quarter and Year-End 2006 Results

Seagate Technology (NYSE: STX) today reported financial results for its fiscal fourth quarter and full year 2006, which includes both accounting charges related to the Maxtor acquisition of $146 million and a loss from Maxtor’s operating results of approximately $72 million. The acquisition of Maxtor was completed on May 19, 2006, and the financial results announced today include the results of Maxtor operations from May 19 through June 30, 2006.

For the fiscal fourth quarter, Seagate reported revenue of $2.53 billion – of which $279 million was Maxtor product based – GAAP net income of $7 million, and diluted earnings per share of $0.01 for the quarter ended June 30, 2006. On a pro-forma Seagate standalone basis, excluding accounting charges, costs and tax effects directly related to the Maxtor acquisition of $146 million, Seagate’s non-cash stock-based compensation of $17 million and the $72 million loss from Maxtor operations, non-GAAP net income was $241 million for the quarter ended June 30, 2006.

In the year-ago quarter, Seagate reported revenue of $2.18 billion, GAAP net income of $280 million and diluted earnings per share of $0.55. The year-ago results did not reflect costs associated with non-cash stock based compensation.

For the fiscal year ended June 30, 2006, Seagate reported revenue of $9.2 billion – of which $279 million was from Maxtor based products – GAAP net income of $840 million and diluted earnings per share of $1.60. These full year results include accounting charges, other costs and related tax effects directly associated with the Maxtor acquisition of $146 million, $74 million for Seagate’s non-cash stock based compensation, and $5 million of other non-operating charges. Non-GAAP net income and diluted earnings per share, excluding these charges and costs and the associated tax impact, would be $1.06 billion and $2.03.

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