Seagate Technology Reports Preliminary Second Quarter Results

Seagate Technology (Scotts Valley, CA) reports that its Q2 '98 revenue will be approximately $1.65 billion, a figure much less than previously anticipated. Pricing pressure from competitors and a weakness in demand for its disc drives are blamed for the shortfall. Revenue from drive operations is estimated to be approximately $1.5 billion. Seagate will absorb restructuring and other one-time charges of more than $300 million to align worldwide operations with current market conditions. $250 million of these charges will be reflected in the second quarter results, which will be announced January 20.