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Seagate issues 4Q warning
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June 28, 1999: 6:43 p.m. ET
Disk-drive maker says weak sales and falling prices will hurt earnings
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NEW YORK (CNNfn) - Weak sales and falling prices prompted disk-drive maker Seagate Technology Inc. Monday to warn that fourth-quarter earnings will fall short of estimates.
Seagate, the world's leading independent maker of storage drives for computers, said it had been expecting earnings of 45 cents per share on a pro forma basis, adjusting for its sale of Seagate Software NSMG to Veritas Software Corp. (VRTS).
The Scotts Valley, Calif.-based company said it now expects earnings per share, excluding the effects of the Veritas deal, to be in the range of 32 cents to 37 cents. First Call Corp. had projected fourth-quarter earnings to be 49 cents per share.
Revenues from all disc-drive products may be about $100 million or 6 percent below fiscal third-quarter results.
Also, Seagate (SEG) said extremely aggressive pricing for desktop disk-drive products will hurt results for the first quarter, ending October 1, 1999.
Seagate expects to report fourth-quarter results on July 15 after the market closes.
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Seagate
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