...SEAGATE TECHNOLOGY PLC FORMReport) 10-K (Annual Filed 08/08/13 for the Period Ending 06/28/13 Telephone CIK Symbol SIC Code Industry Sector Fiscal Year (353) (1) 234-3136 0001137789 STX 3572 - Computer Storage Devices Computer Storage Devices Technology 06/30 http://www.edgar-online.com © Copyright 2013, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. Use these links to rapidly review the document TABLE OF CONTENTS PART IV Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 28, 2013 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-31560 SEAGATE TECHNOLOGY PUBLIC LIMITED COMPANY (Exact name of registrant as specified in its charter) Ireland (State or other jurisdiction of incorporation or organization) 38/39 Fitzwilliam Square Dublin 2, Ireland (Address of principal executive offices) Registrant's telephone number, including area code: (353) (1) 234-3136 98-0648577 (I.R.S. Employer Identification Number) Securities registered pursuant to Section 12 (b) of the Act: Title of Each Class Name of Each Exchange on Which Registered Ordinary Shares, par value $0.00001 per share The NASDAQ...
Words: 96245 - Pages: 385
...In May 1999, Seagate sold its software business to VERITAS Corp in a stock transaction. By undertaking this, Seagate became the largest VERITAS shareholder with over 40% stake. Small numbers of VERITAS’ outstanding shares, both in absolute terms and relative to the Seagate, created relative mispricing due to the increase in demand and decrease in supply. VERITAS' stock price appreciated dramatically but Seagate's stock price didn’t; as the result the market value of Seagate's VERITAS stake exceeded the total market value of Seagate. When the issues with Seagate’s low stock price arose, management tried several options to remedy the problem. Initially, they sold some VERITAS shares they held and then bought back some of their own stock in the open market. They felt that decreasing the amount of outstanding Seagate`s shares and untying the value seen in its VERITAS holdings would result in a higher share price. As these actions failed, the management had to look for other options. They could have cut the losses by liquidating company`s assets. The problem with this option lies in the fact that huge tax liabilities would be incurred for the company and its shareholders, and the entity would be permanently terminated. The only other option was a buyout or merger if they were to ensure both the happiness of shareholders and the future of the Seagate name and company. They formulated a two-stage plan in an attempt to unlock the value in Seagate's operating assets in a tax-efficient...
Words: 722 - Pages: 3
...price of Seagate Technology was 64,25 $/share at that time (Exhibit 3). Exhibit 4 shows the interesting development that starting in October 1999 the pre-tax value of Veritas Stake overruns the market capitalization of Seagate. In March 2000 there is a huge gap between the Seagate market capitalization and the pre-tax value of Veritas Stake, which points to overvalued Veritas shares. As an investor I would short sell the Veritas share, to make money as soon as the Veritas share value goes down and normalizes. If every MBA would take this position the price of Veritas shares would decrease to a normal level very fast where it would not make sense to wait for a further decreasement of the price. Otherwise you could also say that Seagate’s stock value is undervalued. So buying it and selling it to its fair value would give an arbitrage possibility. But here again, when every MBA would buy shares of Seagate, it will be priced at its fair value very soon. The reasons why Veritas and Seagate are priced the way they are, are different. Both companies are active in different market segments with different conditions. Veritas is a smaller company with a main focus on software, while Seagate is active in the disk drive market. Veritas is growing significantly and therefore has achieved a high priced share. Seagate faces a fierce competition in its market with declining revenues and high volatility. Therefore Seagate is priced fairly low. Additionally the stock price of Seagate contains...
Words: 626 - Pages: 3
...Seagate Technology Buyout This case looked at Silver Lake’s proposed leveraged buyout (LBO) of Seagate Technology Inc’s (Seagate) disk drive operations, followed by the tax-free acquisition of Seagate’s remaining assets by Veritas Software Corp (Veritas). The stock prices of the two firms varied greatly at the time with Veritas’ growing much more rapidly than Seagate’s, 200% versus 20% respectively. Executives believed that Seagate’s shares had become undervalued. In order to take advantage of the situation and make money with minimal or no risk I personally would have invested in Seagate. The idea being that the market would eventually realize this undervaluation and correct the price of Seagate’s shares or the company would look to unlock this shareholder value through other means such as the proposed LBO. If everyone in the market took this position, one would see greater demand for Seagate’s shares and therefore the price of these shares would increase eliminating the undervaluation and the arbitrage opportunity. Seagate and Veritas shares were priced the way they were due to the market’s perceived risk of the two firms. Seagate was observed to have higher risk and that resulted in a more discounted share price. This risk involved the nature of Seagate’s business. In the late 1990’s disk drive producers were becoming more out of favour with the stock market versus software companies. Although disk drive producers were seeing growth in their number of unit sales, high...
Words: 478 - Pages: 2
...Seagate Technology Buyout CASE SUMMARY In May of 1999, Seagate sold one of its companies, the Network & Storage Management Group (NSMG), to VERITAS in return for 155 million shares of VERITAS stock. The transaction made Seagate VERITAS’s largest stockholder, creating an ownership stake of over 40%. When a few problems regarding stock prices arose, concerned shareholders were not far behind. Following the transaction, the market was failing to recognize the value of Seagate’s stake in VERITAS, as evident from a 200% increase in VERITAS stock versus only a 25% increase in Seagate’s stock. The board felt that the market was incredibly under pricing Seagate’s stock. After two failed attempts to increase Seagate’s stock price and unlock its value from VERITAS, the company turned to Morgan Stanley for help. In early November of 1999, Morgan Stanley arranged a meeting between Seagate executives and representatives of Silver Lake Partners. After several months of discussion, Silver Lake delivered a proposal and potential solution to Seagate’s problem. This proposal involved a complicated two-step transaction. The first step would involve Seagate selling off its disk drive business, including about $765 million in cash, to a newly-formed company controlled by Silver Lake. The purchase would be financed through a LBO in which Silver Lake and other private equity investors would provide a portion of the selling price through equity, and the rest would be financed through debt The second...
Words: 2328 - Pages: 10
...The Price of RAM And Hard Drive Storage Over The Past 30 Years The price and capacities of RAM and hard drive storage have come a long way in the past 30 years. Take for instance, in 1981 an 18MB hard drive cost $2500, today a 1TB hard drive costs $150. In 1990 RAM costs were $50 per MB and today one can purchase 2GB RAM for approximately $50. Observe the following table pertaining to hard drive cost vs GB capacity from 1980-2009: Table Source: iStockAnalyst Observe that there is a strong exponential correlation in the capacity vs cost ratio, where r=0.9916. During the last 30 years the capacity per unit cost ratio has nearly doubled approximately every 14 months. The regression equation is given by: Many TB+ drives have become available which recently broken the $0.10/GB boundary, whilst the next milestone being $0.01/GB or $10/TB. If historical trends continue, then 10 years from now the cost per GB of hard drive capacity will become $0.0000351 per GB or $0.0351 per TB. For $100, one could purchase a 2,849TB drive 10 years from now, based on the analysis of historical trends. Although 120 PB drives are currently available in the server and super computing market, consumer grade hard drives aren’t available in these sizes, as the physical size and cost per PB is too great for the marketability in the consumer market. Based on historical trends, one could forecast the availability of a consumer level 100TB hard drive in the next five years. It must be noted all figures...
Words: 497 - Pages: 2
...WHEN YOU'RE IN front of your PC, waiting for something to transfer to removable media, seconds can feel like minutes, and minutes like hours. And backups to USB 2.0 appear to crawl along at a snail's pace--so much so that users often become reluctant to perform that essential chore. Such data-transfer scenarios are where the new SuperSpeed USB 3.0 standard and its theoretical, blazing-fast throughput of 5 gigabits per second--as promised by the USB Implementers Forum (USB-IF)--will change your life for the better. And if our tests of four new USB 3.0 hard drives from Buffalo Technology, Iomega, Seagate, and Western Digital are indicative, the change will certainly be dramatic. USB 3.0's impressive speed is its raison d'être, part of its beauty is its backward compatibility with USB 2.0. You need a new cable and a new host adapter (or one of the new motherboards built to but support USB 3.0) to achieve USB 3.0 performance. But you can still use a USB 3.0 device on a USB 2.0 port and achieve typical USB 2.0 performance. You may also use USB 2.0 devices on a USB 3.0 port--though, again, with no gain in speed. The technology behind USB 3.0 more closely resembles PCI Express than USB 2.0. Backward compatibility comes from clever connector design, and a dual bus. The designers added four data lines and a ground wire for the new USB 3.0 signals, and retained the existing pair of data lines for use with USB 2.0 devices. The two technologies share the existing power and ground wires...
Words: 1815 - Pages: 8
...polarization of small patches of the surface coating on a (normally) metal disk. The maximum areal density is defined by the size of the magnetic particles in the surface, as well as the size of the "head" used to read and write the data. The areal density of disk storage devices has increased dramatically since IBM introduced the RAMAC, the first hard disk in 1956. RAMAC had an areal density of 2,000 bit/in². Commercial hard drives in 2005 typically offer densities between 100 and 150 Gbit/in², an increase of about 75 million times over the RAMAC. In 2005 Toshiba introduced a new hard drive using perpendicular recording, which features a density of 179 Gbit/in².[1] Toshiba's experimental systems have demonstrated 277 Gbit/in², and in 2006 Seagate Technology demonstrated a drive with a 421 Gbit/in² density.[2] It is expected that perpendicular recording technology can scale to about 1 Tbit/in² at its maximum. [3] Compact Discs (CDs), another common storage media of the early 2000s, stores data in small pits in plastic surface that is then covered with a thin layer of reflective metal. The standard defines pits that are 0.83 micrometers long and 0.5 micrometers wide, arranged in tracks spaced 1.6 micrometers apart, offering a density of about 0.90 Gbit/in². DVD disks are essentially a "product improved" CD, using more of the disk surface, smaller pits (0.64 micrometers), and tighter tracks (0.74 micrometers), offering a density of about 2.2 Gbit/in². Further improvements in HD...
Words: 603 - Pages: 3
...Even though Seagate had a market leading position in disk drive operations, the market assigned no value, even negative value to Seagate`s operation. Seagate shareholders own 155 million shares (40%) of VERITAS. The market value of the VERITAS’ shares exceeded the Seagate’s main operations equity. Seagate was approximately undervalued by 1.5 billion. The undervaluation of Seagate’s equity was mostly due to tax liabilities of the VERITAS and the maturity of the disk drive industry. Other "soft issue" problem caused by the relative pricing of Seagate and Veritas was lack of incentive for Seagate employees for advancement of disk drive business. Their stock options were tied to VERITAS’ stock price, not to the performance of Seagate’s disk drive business. Also, because of lack of less interest in Seagate’s products, Seagate could not provide money for expansion of R&D and manufacturing in their disk drive operations. Seagate Technology needed a two-step transaction to unlock the value of Seagate for its shareholders. The first step was a leveraged buy-out of Seagate’s drive operations and the second step was performing a tax-free stock swap with VERITAS. A potential arbitrage opportunity was created because of the undervalued market price of Seagate’s shares. Right before the transaction between VERITAS and Seagate occurred; there was a good opportunity for arbitrage by buying Seagate's shares at the underestimated price. The shareholders can sell their shares at a higher...
Words: 546 - Pages: 3
...Seagate Technology Profile: Real-Time Response to Demand John A McClain Capella University MBA 6127 Effective Global Strategic Resourcing Abstract Seagate Technology, is one of the world’s largest manufacturers of computer disk drives and related data storage devices, open its information super highway up to achieve a holistic global supply chain. By giving access to their operating system to both suppliers and customers, the company was able to reduce inventory and lead times to corner the market. In the following analysis, I will explain how the company used visibility to ensure an effective and efficient global supply chain, review the risks associated with real time demand systems, describe categories of regulatory and legal requirements for ensuring compliance in a global supply chain, describe implications of the Foreign Corrupt Practices Act in global operations, assess strategies for ensuring adherence to ethical labor practices, analyze the use of supply chain visibility to ensure equal treatment of partners, and evaluate the role of ethics and regulations in an effective and efficient supply chain. Seagate’s use of visibility to ensure an effective and efficient global operations and supply chain process Seagate characterized it supply chain as a real time demand forecasting process by removing the lag time between supply chain lead time and customer acknowledgement. Seagate has many customers all around the globe, at the same time there are customer...
Words: 1044 - Pages: 5
...Seagate Technology Buyout March 22, 2006 By: Rachel Cluck Beth Crocker Heather Preston Jessica Seal Table of Contents Introduction............................................................................3 Objectives ..............................................................................3 Overview................................................................................4 Alternatives – How to Address Seagate’s Low Stock Price ..5 Do Nothing.............................................................................6 Unload all VERITAS Stake ...................................................7 Sell to Other Investors ...........................................................7 Horizontal Merger or Buyout.................................................7 Vertical Integration ................................................................8 Leveraged Buyouts ............................................................. 10 The Discounted Cash Flow Model ..................................... 11 The Leveraged Buyout Model ............................................ 12 The SML Approach ............................................................ 13 LBO Price ........................................................................... 14 Capital Structure Proposed ................................................. 15 Payback Period for Silver Lake .......................................... 17 Shareholders’ Approval ................................................
Words: 8426 - Pages: 34
...Seagate Limited Warranty English . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Dansk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Deutsch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Español . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
Words: 19783 - Pages: 80
...Seagate Technology Buyout - Case Study Question 1: Why is Seagate undertaking this transaction? Is it necessary to divest the Veritas shares in a separate transaction? Who are the winners and losers resulting from the transaction? Answer: Seagate Technology was badly undervalued as far asSTOCK MARKET is considered, and due to this, the company decided to go for leverage buyout option. A large stake of VERITAS Software Corporation's stocks is owned by Seagate Technology, because of which its stock price is doubled (from its original price), however, the share price of Seagate Technology hardly changed for a long time. Therefore, the reason that the attempts and efforts of senior management were useless, made them decide to engage in Leverage Buyout (LBO). As a result, Seagate went for two fold transaction, i.e. the first is to sell out all of the company's disk drive manufacturing assets including $ 765 million of cash to the acquirer “Silver Lake”. On the other hand, the most crucial thing for Seagate Technology is to take care of the large stake of VERITAS Software Corporation's stocks. Therefore, it was essential for Seagate Technology to go for a separate transaction in order to evade paying large amount of taxes. The transaction of shares among VERITAS and Seagate is taken into account as reorganization of asset, while not applying any corporate taxes. Thus, by using two-fold transaction, Seagate Technology became able to liquidate its undervalued shares...
Words: 399 - Pages: 2
...Case 9 & 10 Analysis Seagate Technology Buyout The Hertz Corporation Advanced Corporate Finance MW 2:00-3:15 PM Question 1 On page 1, the “value-gap” is two-fold. It signifies an under-valuation of Seagate’s core disk drive operating assets due to unfavorable public market investor preferences. Furthermore, the value of the Veritas share price has caused the Veritas stake to far outweigh the value of Seagate’s stand-alone market capitalization. Since Seagate does not own at least 80% of the voting stock in Veritas, distributing the wealth intrinsic in that stake to Seagate shareholders would prove difficult due to the hefty corporate tax rate of 34% that would erode its full-value. From a sum of the parts perspective, it seems that since the Veritas shares held by Seagate appreciated by more than 200%, while Seagate’s shares only increased by 25%, the market assigned relatively no value to Seagate’s market leading position in the disk drive business. This lack of market recognition for the true value of Seagate’s assets forced management to seek action. The management believed that the value of Seagate should be attributed to the value of its operating assets. Since the market was attributing such a high value to its Veritas stake, the market made it appear that Seagate was an investment holding company, rather than being in the disk drives business. There also seemed to be a “value-gap” in the sense that the Veritas stake is attached to business risk in the software...
Words: 1592 - Pages: 7
...Case Studies – Week 10 Case 1: PHILANTHROPIC TEAM BUILDING The top dozen executives from Adolph Coors and Molson breweries wanted to accelerate their team development to kick off the post-‐merger integration of the two companies. But rather than doing the usual team building in the woods or at a friendly game of golf, the Molson Coors leaders spent a full day helping to build a house for Habitat for Humanity. “We quickly got past the idea of a ropes course or golf outing,” recalls Samuel D. Walker, Molson Coors' chief legal officer. “We really wanted something where we would give back to one of the communities where we do business.” According to Walker, the volunteering experience exceeded everyone's expectations. “We had to unload this truck full of cement roof tiles. We actually had to figure out how to have kind of a bucket line, handing these very heavy...
Words: 2781 - Pages: 12
