Seagate Technology discontinues dividend to ‘enhance liquidity’
Seagate Technology, which cut its most recent quarterly dividend 75 percent, said today it is discontinuing it altogether as a move to “further enhance liquidity” and reduce cash “outflows” by an estimated $60 million annually.
Last week, Seagate renegotiated some of the terms of its credit facility with JPMorgan Chase, Morgan Stanley, BNP Paribas, Keybank National, Wachovia and the Bank of Nova Scotia in order to increase its “flexibility in meeting its obligations.”
The company slipped the dividend cancellation news toward the bottom of a release it issued Monday saying it now expects to report shipments of 39 million units and revenue of $2.1 billion during its recently completed quarter, exceeding its previous guidance of $1.6-$2 billion.
