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June 3, 1997updated 05 Sep 2016 1:00pm


By CBR Staff Writer

Disk drive manufacturer Seagate Technology Inc says revenue for its fourth quarter ending June 27 will fall short of its expectations and earnings will likely be less than the $1.01 it did in its third quarter. Analysts surveyed by First Call had been looking for around $1.06. Seagate says revenue will be as much as $250m short of the $2.5bn it did in the last quarter. The company blames the projection on weaker than expected demand, especially for its high-performance, high-cost products. In addition to acquisition charges, Seagate will also take the settlement it with Amstrad Plc on the chin in the current quarter. Seagate was recently ordered to pay Amstrad the equivalent of $128m for supplying faulty disk drives to the UK PC vendor (CI No 3,160). It says longer term outlook for the business remains strong. The company plans to buy back an additional $600m of its stock on top of the $570m it bought back during the current fiscal year. Seagate shares closed up $1.75 at $42.37.

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