Seagate Technology Updates Fiscal Third Quarter 2007 Outlook



    SCOTTS VALLEY, Calif., April 9 /CNW/ -- 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.

    The conference call can be accessed online at www.seagate.com or by
telephone as follows:
    
    USA:  (877) 223-6202
    International:  (706) 679-3742
    Conference ID:  3512136

    Replay
    
    A replay will be available beginning April 17 at 6:30 p.m. Pacific Time
through April 24 at 8:59 p.m. Pacific Time. The replay can be accessed through
Seagate's website at http://www.seagate.com/www/en-us/about/investor_relations
or by telephone as follows:
    
    USA: (800) 642-1687
    International:  (706) 645-9291
    Conference ID:  3512136

    About Seagate
    
    Seagate is the worldwide leader in the design, manufacture and marketing
of hard disc drives, providing products for a wide-range of applications,
including Enterprise, Desktop, Mobile Computing, Consumer Electronics and
Branded Solutions. Seagate's business model leverages technology leadership
and world-class manufacturing to deliver industry-leading innovation and
quality to its global customers, and to be the low cost producer in all
markets in which it participates. The company is committed to providing
award-winning products, customer support and reliability to meet the world's
growing demand for information storage. Seagate can be found around the globe
and at www.seagate.com.

    
    Safe Harbor
    
    This press release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These forward-looking
statements relate to the company's expected revenue and gross margin for its
fiscal third quarter.  These forward-looking statements are based on
information available to Seagate as of the date of this press release. These
forward-looking statements should not be relied upon as representing the
company's views as of any subsequent date and Seagate undertakes no obligation
to update forward-looking statements to reflect events or circumstances after
the date they were made.





For further information:

For further information: media, Brian Ziel, +1-831-439-5429, or 
brian.ziel@seagate.com, or investors, Rod Cooper, +1-831-439-2371, or 
rod.j.cooper@seagate.com, both of Seagate Web Site: http://www.seagate.com/

Organization Profile

SEAGATE TECHNOLOGY

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890