Summary
Seagate Technology Holdings plc (STX) filed an 8-K on December 10, 2008, to disclose updated financial expectations and operational adjustments. The company announced that due to lower demand and a more competitive pricing environment, its expected revenue for the second fiscal quarter of 2009 (ending January 2, 2009) has been revised downwards to a range of $2.3 billion to $2.6 billion. Consequently, operating results are now anticipated to be below previously communicated expectations. In response to these market conditions, Seagate is accelerating its plans to rationalize production capacity and improve its overall cost structure. Investors will receive more detailed information on these restructuring efforts by mid-January. The company emphasized that demand and pricing dynamics through the remainder of December will be critical in determining the final operating results for the quarter. The filing also includes a cautionary note regarding forward-looking statements, highlighting risks associated with global economic uncertainty and the competitive disk drive market.
Key Highlights
- 1Seagate revised its Q2 FY2009 revenue guidance downwards to $2.3 - $2.6 billion, citing lower demand and a competitive pricing environment.
- 2The company expects operating results for Q2 FY2009 to be below previous expectations.
- 3Seagate is accelerating plans to rationalize production capacity and improve its cost structure.
- 4More details on cost reduction and capacity rationalization plans are expected by mid-January.
- 5The final operating results for Q2 FY2009 are highly dependent on demand and pricing through the end of December.
- 6The filing was made in conjunction with presentations at the Barclays 2008 Global Technology Conference.