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Seagate Technology
, a world leader in hard disk drives and
storage solutions, today announced a private share redemption transaction
with Samsung Electronics Co., Ltd. in the amount of 32.7 million ordinary
shares, representing approximately 9% of Seagate's shares outstanding as of
the end of the fiscal first quarter 2014. Following the transaction, Samsung
will continue to own approximately 12.5 million shares of Seagate and Dr.
Seh-Woong Jeong, Executive Vice President at the Systems LSI Division of
Samsung Electronics.
"We are pleased that Samsung intends to continue to be a long-term strategic
shareholder and valued business partner with Seagate. Our success with the
Samsung hard disk drive products that we acquired has exceeded our
expectations and we are very encouraged with our joint product development
for enterprise solid state drives. We look forward to continuing to benefit
from Dr. Jeong's counsel and guidance as part of our Board of Directors and
we are very optimistic about the future of our flash technology
partnership," said Steve Luczo, Seagate Chairman, President and Chief
Executive Officer.
Luczo continued, "Returning value to shareholders is also a top priority for
Seagate and investing in our own company is one of our greatest
opportunities today. Given the strength of our balance sheet and expected
cash flow from operations, we remain committed to our share redemption and
dividend plan. With this transaction, we are on track to meet our stated
goal of returning approximately 70% of operating cash flow to shareholders
this fiscal year while at the same time we continue to make strategic
investments in our business to extend our leadership in cloud, mobile and
open source storage technology."
"Bringing value to the market and consumers has been the primary goal of our
relationship with Seagate and we are pleased with our partnership's success.
Samsung looks forward to continuing our strategic ties with Seagate and
delivering technology solutions for cloud and mobile applications," said
Oh-hyun Kwon, Vice Chairman and CEO of Samsung Electronics.
About Seagate
Seagate is a world leader in hard disk drives and storage solutions. Learn
more at www.seagate.com.
About Samsung Electronics Co., Ltd.
Samsung Electronics Co., Ltd. is a global leader in technology, opening new
possibilities for people everywhere. Through relentless innovation and
discovery, we are transforming the worlds of televisions, smartphones,
personal computers, printers, cameras, home appliances, LTE systems, medical
devices, semiconductors and LED solutions. We employ 270,000 people across
79 countries with annual sales of US$187.8 billion. To discover more, please
visit www.samsung.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and 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 September 27, 2013 and beyond. These
statements identify prospective information and include words such as
"expects," "plans," "anticipates," "believes," "estimates," "predicts,"
"projects" and similar expressions. Forward-looking statements included in
this press release include, but are not limited to, statements regarding the
Company's strategic alignment with Samsung, returning value to shareholders
and the Company's commitment to the share redemption plan. These
forward-looking statements are based on information available to the Company
as of the date of this press release and are based on management's current
views and assumptions. These forward-looking statements are conditioned upon
and also involve a number of known and unknown risks, uncertainties, and
other factors that could cause actual results, performance or events to
differ materially from those anticipated by these forward-looking
statements. Such risks, uncertainties, and other factors may be beyond the
Company's control and may pose a risk to the Company's operating and
financial condition. Such risks and uncertainties include, but are not
limited to: the uncertainty in global economic conditions, as consumers and
businesses may defer purchases in response to tighter credit and financial
news; the impact of the variable demand and adverse pricing environment for
disk drives, particularly in view of current business and economic
conditions; dependence on the Company's ability to successfully qualify,
manufacture and sell its disk drive products in increasing volumes on a
cost-effective basis and with acceptable quality, particularly the new disk
drive products with lower cost structures; the impact of competitive product
announcements; possible excess industry supply with respect to particular
disk drive products; and the Company's ability to achieve projected cost
savings in connection with restructuring plans. Information concerning
risks, uncertainties and other factors that could cause results to differ
materially from those projected in the forward-looking statements is
contained in the Company's Annual Report on Form 10-K filed with the U.S.
Securities and Exchange Commission on August 8, 2013, which statements are
incorporated into this press release by reference. These forward-looking
statements should not be relied upon as representing the Company's views as
of any subsequent date and the Company undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the date
they were made.
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