Seagate Sees $64 Million Charge On Goodwill, Long-Term Assets
02 October 2009 - 6:51AM
Dow Jones News
Seagate Technology Inc. (STX) expects to take a $64 million
non-cash charge to impairment of goodwill and other long-term
assets to write-down the value of equipment it plans to sell.
According to a filing with the Securities and Exchange
Commission, Seagate will take the charge during its fiscal
first-quarter of 2010.
The hard-drive maker will sell equipment "related to certain
research activities that have ceased," and is writing-down the
assets to fair value less the cost of the sale.
Seagate doesn't expect the charges to result in any material
future cash expenditures.
Seagate shares closed down 4.6% to $14.51 Thursday. The stock
was inactive after-hours.
-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155;
jerry.dicolo@dowjones.com