Conner says 3rd-period net rose, but results raise price-war fear
Article Abstract:
Conner Peripherals Inc reported a 3rd qtr profit of more than twice its earnings for the same quarter of the previous fiscal year, but rumors of a price war caused the company's stock to fall. Earnings were $41.9 million, the equivalent of 64 cents per share, whereas earnings for the 3rd qtr of the previous fiscal year were $17.4 million, or 30 cents per share. Revenue reached a record high of $625.5 million, a rise of 58 percent from the $394.7 million reported in the previous fiscal year. However, gross profit margins fell from 22.9 percent in the 2nd qtr to 19.3 percent in the 3rd qtr. Investors, fearing that Conner is beginning a price war, caused the company's stock to fall to $18.625 on the New York Stock Exchange Oct 21, 1992, a drop of $2.50. A major factor in the increased earnings was Conner's sales to Compaq Computer Corp.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Seagate insiders pare holdings of firm's stock
Article Abstract:
Seagate Technology insiders begin selling their stock in the computer disk drive company. Analysts interpret the paring of holdings as an indication that the disk drive industry is in for more rough times. Seagate reports fiscal 4th qtr earnings down 44 percent. Subsequently, 30 Seagate insiders arrange to sell $10 million in stock from Jul 30 to Aug 31, 1993, at the per-share rate of $19.38. Stock for the company closed Sep 14, 1993, at $17.625. The amount of the sales and the number of insiders selling are higher than they are for routine exercising of options. The industry is currently in price wars, and executives are not sure when the market will return to their favor.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Once-battered Seagate gains in computer price war; disk-drive maker stuns Wall Street with big rebound in last 2 quarters
Article Abstract:
Seagate Technology Inc, maker of hard disk drives, has impressed Wall Street with its ability to survive brutal price wars and become a profitable company. Seagate's recent return to profitability is due heightened competition in the computer industry, which have caused an increase in shipments of disk drives. The business strategy of the company has also shifted under the leadership of Alan Shugart; the company will no longer sell at a loss to maintain its market share. Industry observers say that Seagate is controlling the most market share, 25.4 percent, because of its large size and manufacturing prowess.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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