Seagate Updates Fiscal Fourth Quarter 2009 Financial Outlook; Provides Initial Outlook...

Seagate Updates Fiscal Fourth Quarter 2009 Financial Outlook; Provides Initial
Outlook for Fiscal First Quarter 2010

New product transitions, operational efficiencies and favorable pricing drive
higher than planned revenue and gross margin for the June 2009 quarter

SCOTTS VALLEY, Calif., June 24 /PRNewswire-FirstCall/ -- Seagate Technology
(Nasdaq: STX) today announced an update to its expected financial results for
its fourth fiscal quarter of 2009, which ends July 3, 2009. Additionally, the
Company issued initial planning assumptions for its first fiscal quarter of
2010, which ends on October 2, 2009.

Specific to the June 2009 quarter:
-- Unit demand and pricing for the Company's products, in aggregate,
are tracking favorably as compared to the outlook the Company provided
on April 21, 2009
-- Improved operational efficiencies, product management and the
continuing
successful transition to the Company's new products, which is
allowing the Company to optimize product mix and gross margin
-- Company and industry channel inventory continue to be below historic
levels
-- As such, the Company now expects:
-- The total available market (the "TAM") for hard disk
drives to be approximately 120 million units, or slightly higher,
versus our original assumption of 114 million units
-- Revenue of approximately $2.20 - $2.30 billion
-- Gross margin as a percent of revenue of approximately 15%

-- Product Development, Marketing and Administrative costs are
expected
to be $335 million

Relative to the September 2009 quarter, the Company for planning purposes is
assuming:
-- The overall TAM for hard disk drives is expected to increase
seasonally
by approximately 6% to 8% with the exception of the enterprise market
which will be flat compared to the June quarter
-- Supply and demand will be in relative balance, therefore price
declines
will be similar in nature to the June quarter
-- As such, the Company is planning for:
-- Revenue of approximately $2.35 - $2.50 billion
-- Gross Margin as a percent of revenue will improve to approximately
18%, which is ahead of plan due to improved operational
efficiencies
and product management, and reaches the low end of the
Company's targeted range of 18% - 24%
-- Product Development, Marketing and Administrative costs will be
$315
million

-- Tax provision of approximately 6%

"The operational and financial performance improvements we have delivered over
the last few months are encouraging," said Steve Luczo, Seagate chief
executive officer. "We are making successful transitions to our newer, more
cost effective and more competitive products. We are returning to our
technology leadership position, as evidenced by our time-to-market position
with 640GB 2.5-inch and 2TB 3.5-inch products. This progress combined with
improved operational efficiencies and product management is accelerating our
path to profitability."

About Seagate
Seagate is the worldwide leader in hard disk drives and storage solutions.
Learn more at seagate.com.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These forward-looking statements
include, but are not limited to, statements related to the Company's
preliminary results for the June 2009 quarter and its future operating and
financial performance in the September 2009 quarter, and thereafter, and
include statements regarding expected revenue, gross margin, inventory levels,
product competition, customer demand for disk drives, product transitions, the
Company's ability to return to profitability, effective tax rates and general
market conditions. These forward-looking statements are based on information
available to Seagate as of the date of this press release. Current
expectations, forecasts and assumptions involve a number of risks,
uncertainties, and other factors that could cause actual results to differ
materially from those anticipated by these forward-looking statements. Such
risks, uncertainties, and other factors may be beyond the Company's control.
In particular, the decline in global economic conditions continues to pose a
risk to the Company's operating and financial performance as consumers and
businesses have, and may continue to, defer purchases in response to tighter
credit and negative financial news. Such risks and uncertainties also include
the impact of the variable demand and the aggressive pricing environment for
disk drives, particularly in view of current business and economic conditions;
dependence on Seagate's ability to successfully qualify, manufacture and sell
its disk drive products in increasing volumes on a cost-effective basis and
with acceptable quality, particularly the new disk drive products with lower
cost structures; the impact of competitive product announcements and possible
excess industry supply with respect to particular disk drive products; our
ability to achieve projected cost savings in connection with our anticipated
and announced restructuring plans; and the impact of changes in foreign and
domestic tax regulations. Information concerning risks, uncertainties and
other factors that could cause results to differ materially from those
projected in the forward-looking statements is contained in the Company's
Annual Report on Form 10-K as filed with the U.S. Securities and Exchange
Commission on August 13, 2008, and in the Company's Quarterly Report on Form
10-Q as filed with the U.S. Securities and Exchange Commission on May 6, 2009,
which statements are incorporated into this press release by reference. These
forward-looking statements should not be relied upon as representing the
Company's views as of any subsequent date and Seagate undertakes no obligation
to update forward-looking statements to reflect events or circumstances after
the date they were made.

SOURCE Seagate

Media, Brian Ziel, +1-831-439-5429, brian.ziel@seagate.com, or Investors, Rod
Cooper, +1-831-439-2371, rod.j.cooper@seagate.com, both of Seagate