During the quarter ended December 29, 2000, an investor group led by Silver Lake Partners completed the acquisition of substantially all of the operating businesses of Seagate Technology, Inc. The consolidated condensed statements of operations for the nine months ended March 30, 2001 include the combined results of the Company from November 23, 2000, the date of the acquisition, to March 30, 2001 with the results of its predecessor, Seagate Technology, Inc., from July 1, 2000 through November 22, 2000.
The pro forma results for the quarter ended March 30, 2001 exclude restructuring charges of $54 million. For the same period on a GAAP basis, the Company reported net income of $24 million.
For the quarter ended March 31, 2000, pro forma net income of Seagate Technology, Inc. was $46 million. This excluded restructuring charges, in-process research and development charges related to the acquisition of XIOtech Corporation, a gain on the sale of a portion of Seagate Technology, Inc.’s previously held investment in SanDisk, and all items related to Seagate Technology, Inc.’s previously held investment in VERITAS Software Corporation (VERITAS). On a GAAP basis, Seagate Technology, Inc. reported net income of $136 million for the quarter ended March 31, 2000.
For the immediately preceding quarter ended December 29, 2000, pro forma net income was $68 million and pro forma EBITDA was $259 million. The pro forma results excluded transaction-related charges, which included a write-off of in-process research and development, as well as losses on sales of certain investments in equity securities, the loss on the sale of operating assets to New SAC, and all items related to Seagate Technology, Inc.’s previously held investment in VERITAS. The operating results for the quarter ended December 29, 2000 included the combined results of the Company from November 23, 2000, the date of the acquisition, to December 29, 2000 with the results of its predecessor, Seagate Technology, Inc., from October 1, 2000 through November 22, 2000. On a GAAP basis, the Company reported a combined net loss of $1.791 billion.
Seagate and its affiliated companies are controlled by New SAC, a Cayman Island limited liability company, organized in late 2000 to acquire the hard disc drive and storage solutions business, the tape drive business, the software business and certain other assets of Seagate Technology, Inc. These businesses include: Seagate Technology (which includes hard disc drives and XIOtech Corp.), Seagate Removable Storage Solutions, and Crystal Decisions (formerly known as Seagate Software). The acquisition closed on November 22, 2000.
