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7/17/2003

Seagate reverses its fiscal fortunes

By Tony Kindelspire
The Daily Times-Call

LONGMONT — Seagate Technology reported a big jump in profits in the most recent quarter and for the fiscal year, which ended June 27.

The hard-drive maker reported net income of $160 million, or 33 cents per diluted share, on revenues of $1.55 billion in the most recent quarter. During the fourth quarter of fiscal year 2002, the company had reported revenue of $1.47 billion, equating to a net loss of $198 million and a loss per share of 49 cents.

The year-ago quarter included a pre-tax charge for deferred compensation of $179 million and costs related to debt refinancing of $93 million.

For fiscal year 2003, Seagate reported net income of $641 million, or $1.36 per diluted share, on revenue of $6.49 billion.

For fiscal year 2002, the company reported revenue of $6.09 billion and net income of $153 million, or 36 cents per diluted share.

“Seagate was able to grow revenues nearly $400 million by continuing to effectively serve its current market,” Steve Luczo, Seagate’s chairman and chief executive officer, said during a conference call with investors Tuesday. “Looking ahead, new markets, such as notebook, provide an opportunity for further revenue growth.”

Last month, Seagate began shipments of its “Momentus” hard drive, its first product offering for notebook PCs and a “key to the company’s long-term growth strategy,” according to Luczo.

Seagate employs approximately 1,000 people at its Longmont facility.

Tony Kindelspire can be reached at 303-776-2244, Ext. 291, or by e-mail at tkindelspire@times-call.com.