Seagate 2004 Annual Report Download - page 10

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Table of Contents
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larger capacity 3.5-inch form factor disc drives to address the market for larger capacity digital video recorders and home media
storage devices and near
-
line enterprise applications;
•
our first hard drive designed specifically for automobile applications; and
Enterprise Storage
•
external disc drives with higher capacity or increased portability.
Cheetah Family . Commercial uses for Cheetah disc drives include Internet and e-commerce servers, data mining and data
warehousing, mainframes and supercomputers, department/enterprise servers and workstations, transaction processing, professional video and
graphics and medical imaging.
Savvio Family. Savvio is our 2.5-inch enterprise disc drive. This disc drive was our first enterprise disc drive in the smaller 2.5-inch
form factor and, as such, allows the installation of more disc drives per square foot, thus facilitating faster access to data.
Desktop Storage
U Series X and Barracuda ATA/SATA Family. The U Series X and Barracuda ATA/SATA families of disc drives are used in desktop
applications, workstations and low-end applications.
Consumer Electronics Storage
ST1, U Series X and Barracuda ATA/SATA Family . The U Series X and Barracuda ATA/SATA families of disc drives are used in
desktop applications and other markets, including digital video recorders, video game consoles, audio jukeboxes, home media centers, and
home and industrial security systems. The ST1 series of disc drives are used in hand-held consumer electronics devices such as digital music
players, digital cameras and digital video cameras. Our consumer electronics disc drives feature quiet acoustics, high reliability and high
performance streaming.
Mobile Computing
Momentus Family. The Momentus family of disc drives is our mobile computing disc drive products. Commercial uses for Momentus
disc drives include notebook computers running popular office applications and notebooks for business, government and education
environments. Consumer uses for Momentus disc drives include notebook computers, tablet computers and digital audio applications.
Customers
We sell our disc drive products primarily to major OEMs and distributors. OEM customers incorporate our disc drives into computer
systems and storage systems for resale. Distributors typically sell our disc drives to small OEMs, dealers, system integrators and other resellers.
Shipments to OEMs were approximately 72%, 64% and 63% of our disc drive revenue in fiscal years 2005, 2004 and 2003, respectively.
Shipments to distributors were approximately 26%, 35% and 37% of our disc drive revenue in fiscal years 2005, 2004 and 2003, respectively.
Sales to Hewlett-Packard accounted for approximately 18%, 19% and 18% of our disc drive revenue in fiscal years 2005, 2004 and 2003,
respectively, while sales to Dell as a percentage of our disc drive revenue were 12% in fiscal year 2005. No other customer accounted for 10%
or more of our disc drive revenue in fiscal years 2005, 2004 and 2003. Retail sales in fiscal year 2005 as a percentage of our disc drive revenue
increased to 1.7% from 0.9% and 0.1% in fiscal years 2004 and 2003, respectively. See “Item 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations—Risk Factors—Risks Related to Our Business—Dependence on Key Customers—We may be
adversely affected by the loss of, or reduced, delayed or cancelled purchases by, one or more of our larger customers.”
8