Seagate Technology sees $60m charge

Seagate Technology sees $60m charge
Tom Foremski
Disk drive market leader Seagate Technology said it will take a charge of as much as $60m in its current fiscal third quarter to pay for restructuring costs.
Those costs include the closure of its manufacturing facility in Scotland, consolidation of its customer service facilities and additional unspecified actions. Although the company reports that orders are up for its hard drives, the company is still suffering from global competition that has resulted in a glut of hard drives and falling prices.
Seagate also announced a new family of hard drives that can withstand a shock specification of 300 Gs. The new SeaShield System will be shipped with its Medalist 17242 and U4 product families and future products.


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