Seagate 2007 Annual Report Download - page 43

Table of Contents
ITEM 7.
MANAGEMENT
’
S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is a discussion of the financial condition and results of operations for the fiscal years ended June 27, 2008, June 29, 2007
and June 30, 2006. Unless the context indicates otherwise, as used herein, the terms “we,” “us” and “our” refer to Seagate Technology, an
exempted company incorporated with limited liability under the laws of the Cayman Islands, together with its subsidiaries.
You should read this discussion in conjunction with “Item 6. Selected Financial Data” and “Item 8. Financial Statements and
Supplementary Data” included elsewhere in this report. Except as noted, references to any fiscal year mean the twelve-month period ending on
the Friday closest to June 30 of that year.
Some of the statements and assumptions included in this Annual Report on Form 10-K are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended, including, in particular,
statements about our plans, strategies and prospects and estimates of industry growth for the fiscal quarter ending October 3, 2008 and beyond.
These statements identify prospective information and include words such as “expects,” “plans,” “anticipates,” “believes,” “estimates,”
“predicts,” “projects,” and similar expressions. These forward-
looking statements are based on information available to us as of the date of this
report. Current expectations, forecasts and assumptions involve a number of risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. Such risks, uncertainties, and other factors may be beyond our control. In particular,
such risks and uncertainties include the impact of the variable demand and the aggressive pricing environment for disc drives, particularly in
view of current domestic and global economic uncertainty; dependence on our ability to successfully qualify, manufacture and sell our disc drive
products in increasing volumes on a cost
-effective basis and with acceptable quality, particularly the new disc drive products with lower cost
structures; the impact of competitive product announcements and possible excess industry supply with respect to particular disc drive products;
our ability to achieve projected cost savings in connection with our announced restructuring plans; market conditions and alternative cash
imperatives which could impact our ability to repurchase stock; and the factors listed in the “Risk Factors” section of Item 1A of this Annual
Report on Form 10
-K, which we encourage you to carefully read. These forward-looking statements should not be relied upon as representing
our views as of any subsequent date and we undertake no obligation to update forward-looking statements to reflect events or circumstances
after the date they were made.
Our Company
We are the world’
s leading provider of hard disc drives, based on revenue and units shipped. We design, manufacture, market and sell hard
disc drives. Hard disc drives, commonly referred to as disc drives or hard drives, are devices that store digitally encoded data on rapidly rotating
platters or discs with magnetic surfaces. The performance attributes of disc drives, including their cost effectiveness and high storage capacities
has resulted in disc drives being used as the primary medium for storing electronic data in systems ranging from desktop and notebook
computers, and consumer electronics devices to data centers delivering electronic data over corporate networks and the Internet.
We produce a broad range of disc drive products addressing enterprise applications, where our products are used in enterprise servers,
mainframes and workstations; desktop applications, where our products are used in desktop computers; mobile computing applications, where
our products are used in notebook computers; and consumer electronics applications, where our products are used in a wide variety of devices
such as digital video recorders (DVRs), gaming devices and other consumer electronic devices that require storage. We also sell our branded
storage solutions under both the Seagate and Maxtor brands. In addition to manufacturing and selling disc drives, we provide data storage
services for small- to medium-sized businesses, including online backup, data protection and recovery solutions.
We sell our disc drives primarily to major original equipment manufacturers (OEMs), and we also market to distributors and retailers under
our globally recognized brand names. We have longstanding relationships with
42