Seagate Technology Updates Fiscal Third Quarter 2007 Outlook

Seagate Technology Updates Fiscal Third Quarter 2007 Outlook

Seagate Technology (NYSE: STX) today provided an update on its expected results for the fiscal third quarter ended March 30, 2007. Revenue for the fiscal third quarter is now expected to be approximately $2.8 billion, compared to prior guidance of $2.9-3.0 billion, and GAAP and non-GAAP gross margins did not achieve the company’s expectations.

Primary factors impacting revenue and profitability, which became evident toward the end of March, were a lower than expected industry demand for 3.5-inch ATA disc drives and a more aggressive than planned pricing environment for high capacity 3.5-inch ATA disc drives.

The company believes that its market share, both in total and within each market currently served, is virtually unchanged from the previous quarter. Further, Seagate’s inventories on-hand in the distribution channel are under five weeks. Overall, the company’s results continue to be healthy and are reflective of its leadership position in an industry where consumers and applications are using, creating and sharing digital content at an accelerating pace.

Fiscal Third Quarter Financial Results: Seagate Technology will report its fiscal third quarter 2007 financial results on Tuesday, April 17, 2007, after the close of the market. A subsequent conference call for the investment community will take place at 2:30 p.m. Pacific Time.

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