Seagate records revenue of US$1.7bil in second quarter


  • Business
  • Saturday, 11 Jan 2003

By DERRICK VINESH in Penang

SEAGATE Technology Inc has reported consolidated revenue of US$1.734bil for its second fiscal quarter ended Dec 28, 2002; with its Asia-Pacific operations making the highest contribution of 34%. 

This was closely followed by its North America and Europe operations with 33% each, the company said in a statement.  

In the company's first fiscal quarter to Sept 30, 2002, Asia Pacific made up 35% of its consolidated revenue of US$1.629bil. 

Charles Pope

The statement also noted that the company had recorded shipments of 18.3 million disc drives for the second quarter. 

Seagate chief executive officer Steve Luczo said the results reflected solid execution and continued market leadership, and was attributable to the efforts of every employee. 

“It is important to understand that this performance is the direct result of the multiple investments in people, process and technology that we have made over the last few years. We remain committed to investing in product development and operational efficiency programmes that will further strengthen our position,” he said. 

At a teleconferencing session with journalists at its plant in Bayan Lepas, Penang, yesterday Seagate chief financial officer Charles Pope said he expected the non-branded personal computer (PC) manufacturers to continue to contribute to the strength of the disc drive business in Asia Pacific. 

“Given the quality and performance that the non-branded PC manufacturers have demonstrated over the last year and year-and-a-half, they have been capturing a larger share of the total PC market because they are very low cost, among others. We expect them to continue as they are performing very well,” he said. 

Tractors Malaysia's Car Rental store in Johor Baru

Pope said that although he did not expect to see any material change in terms of regional revenue split in the short term in Asia Pacific, the region had a great deal of strength, especially in the non-branded PC market. 

He also noted that since 1999, there had been significant investments especially into Seagate's assembly technology factories in Singapore, Thailand and China. 

“What has gone into these facilities has significantly boosted the productivity, flexibility, quality and reliability of the products that are being produced in all of those areas. This is demonstrated by the quality matrix of the product and the ability that Seagate has to respond to customer changes in a very short period of time,” he added. 

The company has also announced a profit-sharing exercise for all its employees, set at 18.45% of their basic salary next week, for the quarter.  

More than 5,000 Seagate employees in Malaysia are expected to enjoy the benefit. The company's profit sharing for the first fiscal quarter was 11.54%. 

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