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Seagate Tech still sees red
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April 14, 1998: 6:32 p.m. ET
Leading disk drive maker posts a $129M loss after special charges
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NEW YORK (CNNfn) - Seagate Technology Inc., the world's leading provider of computer disk drives, said increased competition and significant price cuts pushed operations into the red in its fiscal third quarter.
For the quarter ended April 3, the Scotts Valley, Calif.-based company late Tuesday reported a net loss of $128.5 million, or 53 cents a share, on revenue of $1.6 billion.
The results included one-time charges of $141.9 million to restructure its operations. In January, the company said it would lay off about 10 percent of its global work force. Seagate also took another charge of $23.8 million to write off inventory and equipment.
But even without the charges, the net loss would have been 10 cents a share, Seagate said. Analysts had expected a loss of 9 cents, according to First Call.
In the year-ago quarter, net income totaled $257 million, or $1.01 a share, on revenue of $2.5 billion.
Results were affected by "increased competition resulting in significant price decreases and continuing weakness in demand for the company's disk drive products," Seagate said.
Company officials weren't available for comment.
For the nine months ended April 3, Seagate had a net loss of $552 million, or $2.27 a share, on revenue of $5.24 billion. A year earlier, the company earned $599 million, or $2.38 per share, on revenue of $6.96 billion in the nine months ended March 28, 1997. 
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Seagate
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