Seagate 2009 Annual Report Download - page 13

Table of Contents
7200.4 is a 7,200 RPM disk drive for high-performance notebooks. In addition, we began shipping our new hybrid drive into the notebook
market with the introduction of our Momentus XT product line in the fourth fiscal quarter of 2010. Hybrid disk drives incorporate both a hard
disk drive and NAND flash storage. The benefits of such drives are improved performance over hard disk drives, as well as higher capacity and
lower cost compared to SSDs alone.
Barracuda ATA/SATA Family. Our Barracuda 3.5-inch disk drive delivers storage capacities of up to 2TB at 7,200 RPM and is designed
for applications such as PCs, workstations and personal external storage devices.
Client Non-Compute
Pipeline HD and DB35 SATA Family. We sell our 3.5-inch Pipeline HD and DB35 disk drives primarily for use in DVRs. These disk
drives are optimized for leading-edge digital entertainment and range from 160GB to 1TB.
Pipeline Mini SATA Family. We sell our 2.5-inch, 5,400 RPM Pipeline Mini disk drives, with capacities ranging from 160GB up to
500GB, for use in low-profile DVRs, gaming consoles, home entertainment devices and small footprint media PCs.
We ship external backup storage solutions under our Free Agent Go™ and Free Agent Go Flex™ product lines. Both of these product lines
utilize our 3.5-inch and 2.5-inch disk drives, which are available in capacities up to 2TB and 750GB, respectively.
Customers
We sell our disk drives primarily to major OEMs. We also sell to distributors and retailers under our globally recognized brand names. We
have longstanding relationships with many of our OEM customers, such as Hewlett-Packard Company, Dell Inc. and EMC Corporation.
The following table summarizes our disk drive revenue by channel and by geography:
OEM customers typically enter into master purchase agreements with us. These agreements provide for pricing, volume discounts, order
lead times, product support obligations and other terms and conditions. The term of these agreements is usually 6 to 24 months; however they are
generally cancelable for convenience by either party upon written notice. Our product support obligations generally extend substantially beyond
the term of the agreement. These master agreements typically do not commit the customer to buy any minimum quantity of products, or create
exclusive relationships. Deliveries are scheduled only after receipt of purchase orders. In addition, with limited lead-time, customers may cancel
or defer most purchase orders without significant penalty. Anticipated orders from many of our customers have in the past failed to materialize
or OEM delivery schedules have been deferred or altered as a result of changes in their business needs.
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Fiscal Years Ended
July 2,
2010
July 3,
2009
June 27,
2008
Revenues by Channel (%)
OEM
71
%
64
%
67
%
Distributors
21
%
27
%
26
%
Retail
8
%
9
%
7
%
Revenues by Geography (%)
Americas
26
%
28
%
30
%
EMEA
22
%
27
%
27
%
Asia Pacific
52
%
45
%
43
%