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10/21/2004

Seagate reports drop in revenue

The Daily Times-Call

SCOTTS VALLEY, Calif. — Disc drive maker Seagate Technology Corp. reported a drop in revenues and earnings for the first quarter of fiscal year 2005.

Revenues for the quarter ended Oct. 1 were $1.56 billion, net income was $54 million and diluted earnings per share was 11 cents.

During the same period a year ago, the company had reported revenue of $1.74 billion, net income of $198 million and earnings per share of 40 cents.

Despite the news, Bill Watkins, Seagate’s president and CEO, wrote in a press release announcing the earnings that “even in a challenging environment, we met or exceeded our overall performance targets.”

Watkins mentioned the company’s 1-inch drive being selected by some companies for integration into their portable digital audio players; the company’s 2.5-inch drive being qualified by original equipment manufacturers; and what he called a record 3 million enterprise storage units shipped during the recent quarter as proof of the company’s positive performance during the quarter.

“Net income for the September quarter of $54 million included a favorable impact of $14 million related to the discontinuation of certain benefits associated with Seagate’s post-retirement medical plan,” the company also noted in its press release.