Seagate Technology (STX) reports 2Q:09

Seagate reports revenues a couple of hundred million below the street at 2.27 bil. Red runs deep with EPS of (1.02) for the quarter -- 93 cents of this relates to amortization, restructuring and tax asset valuation charges. Next quarter is guided to 1.6 - 2.0 billion, below consensus of 2.2 billion. The company is urging the board to cut the dividend to conserve cash flow. They borrowed $350 million against a $500 million revolving credit facility for cash on hand and drew up 50 mil in outstanding letters of credit. They have 100 mil undrawn against that line.