ADIC Earns 22 Cents in Fourth Quarter on Sales of $76 Million as Revenue Growth Accelerates; Fiscal Year Earnings, Including Gains, Reach $89 Million, or $1.66 Per Share.Business Editors REDMOND, Wash.--(BUSINESS WIRE)--Dec. 7, 2000 Advanced Digital Information Corporation (Nasdaq:ADIC) today announced earnings of $11.6 million, or 22 cents per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the fourth quarter ending Oct. 31 and earnings of $88.9 million, or $1.66 per diluted share, for the fiscal year ending Oct. 31. Earnings include a pre-tax net gain of $6.9 million for the fourth quarter and $97.3 million for the fiscal year primarily as a result of sales of Crossroads Systems, Inc. shares (Nasdaq:CRDS CRDS Contribution pour Le Remboursement de la Dette Sociale (French: Social Debt Repayment Contribution) CRDS Cavity Ring-Down Spectroscopy CRDS Community Rehabilitation and Disability Studies ) owned by the Company. Excluding the effects of these gains, earnings were $7.5 million, or 14 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the fourth quarter and $27.2 million, or 51 cents per share for the fiscal year. "As anticipated, the fourth quarter demonstrated an acceleration in our revenue growth as a result of increased OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and shipments, strong sales of branded products and stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of our large library business," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Chairman and Chief Executive Officer Peter van Oppen. "We are particularly pleased to see our core North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. markets grow at rates in excess of 50 percent for the quarter and fiscal year while, despite an increase in lower margin OEM sales, reporting improved quarterly and annual gross margins of 35.6 percent and 35.2 percent, respectively," he said. The Company said sales of products to OEM customers, including Dell Computer and IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , totaled 28 percent of revenue for the fourth quarter compared to 21 percent for the third quarter ended July 31. Such sales do not include revenue for the new 7-cartridge autoloader based on DLT-1 tape technology which began shipping to Dell in the quarter nor any revenue for the 18-72 cartridge (1) See phono cartridge. (2) A removable storage module that contains magnetic disks, optical discs, magnetic tape or memory chips. Cartridges are inserted into slots in the drive, printer or computer. tape libraries expected to begin shipping to Dell in the current quarter. President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. Chuck Stonecipher said, "We continue to have an extremely strong cash position and compelling market opportunities. The reported acceleration in our growth rate this period helps validate To prove something to be sound or logical. Also to certify conformance to a standard. Contrast with "verify," which means to prove something to be correct. For example, data entry validity checking determines whether the data make sense (numbers fall within a range, numeric data our decision to increase spending rates over the last two quarters. Further, we believe the outlook is sufficiently promising to justify significant continued increases in sales, marketing, research and development expenditures over the next few quarters. Such spending is part of our investment to assure a continued leading position in the burgeoning market for software and hardware required to support the organization, protection and retrieval of large-scale electronic information." Selling and administrative expenses increased 42 percent to $14.8 million during the fourth quarter versus the same period a year ago. Research and development expenses were $4.4 million during the period, an increase of 13 percent. For the fiscal year, such expenses increased by 35 percent and 26 percent, respectively. Cash and marketable Marketable are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly. equity securities total approximately $205 million at Oct. 31, a decrease of $23 million from the previous quarter, while Investments total approximately $21 million. Investments include the Company's remaining 500,000 shares of Crossroads Systems, Inc. as well as other private company equity investments. Gains recognized on sales of Crossroad's shares during the quarter were partially offset by reductions in the recorded value in certain investments which the Company believes reflects their current value. About ADIC With more than 70,000 automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. tape libraries installed, innovative storage management software, Fibre Channel Storage Area Network (SAN) solutions, and Network Attach Storage (NAS (1) See network access server. (2) (Network Attached Storage) A specialized file server that connects to the network. A NAS device contains a slimmed-down operating system and a file system and processes only I/O requests by supporting the popular ) appliances, ADIC is the world's leading device-independent storage solutions provider to the open systems marketplace. The Company offers a broad range of products designed to help organizations stay more productive by making it easier for them to store, protect, manage and use their rapidly growing network data. ADIC's industry-leading line of automated storage products are available through a worldwide sales force and a global network of resellers and OEM partners, including Dell, IBM and Fujitsu Siemens (Fujitsu Siemens Computers, Inc. (USA), Milpitas, CA, www.fujitsu-siemens.com) Fujitsu Siemens Computers USA is a wholly owned research and development subsidiary of Fujitsu Siemens Computers. . Further information about ADIC is available at http://www.adic.com. Conference Call There will be a conference call to discuss the fourth quarter fiscal 2000 earnings and fiscal 2001 outlook at 2pm PST PST Paroxysmal supraventricular tachycardia, see there on Dec. 7. The call can be accessed live on our website at www.adic.com/ir. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's existing and future products and services and future operating results that are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. The words "believe", "expect", "intend", "anticipate", and similar expressions identify forward-looking statements, but their absence does not mean that the statement is not forward-looking. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could affect the Company's actual results include general economic trends, technical competition or obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. , supply constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. , changes in market pricing and production problems. In addition, the market for technology stocks such as Crossroads is extremely volatile and there is no assurance that ADIC will realize the value currently reflected on its balance sheet when and if it liquidates its remaining investment in Crossroads. Reference is made to the Company's Prospectus dated September 23, 1999 and Annual Report Form on 10K for a more detailed description of factors that could affect the Company's actual results. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date of this release or to reflect the occurrence of unanticipated events. ADIC, FastStor, Scalar scalar, quantity or number possessing only sign and magnitude, e.g., the real numbers (see number), in contrast to vectors and tensors; scalars obey the rules of elementary algebra. Many physical quantities have scalar values, e.g. and AMASS (Archive Management And Storage System) Tape management software for Unix from Quantum Corporation, Colorado Springs, CO (www.quantum.com). Originally developed by ADIC, AMASS makes the tape library look like an infinite disk drive to the application. are trademarks of Advanced Digital Information Corporation. DLT (Digital Linear Tape) A magnetic tape technology originally developed by Digital for its VAX line. The technology was later sold to Quantum, which makes it available to other manufacturers. DLT uses half-inch, single-hub cartridges similar to IBM's 3480/3490/3590 line. is a trademark of Quantum Corporation. All other product or company names should be considered the property of their owners.
ADVANCED DIGITAL INFORMATION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share amounts)
Three months ended Fiscal year ended
October 31, October 31,
(Unaudited)
2000 1999 2000 1999
--------- --------- --------- ---------
Net sales $ 76,087 $ 62,988 $270,870 $223,367
Cost of sales 49,002 40,797 175,389 146,627
--------- --------- --------- ---------
Gross profit 27,085 22,191 95,481 76,740
Selling and
administrative expenses 14,825 10,420 51,355 37,922
Research and
development expenses 4,366 3,866 16,810 13,356
Acquired in-process
technology -- 2,054 -- 2,054
--------- --------- --------- ---------
Operating profit 7,894 5,851 27,316 23,408
Other income, net 10,576 554 108,242 1,026
--------- --------- --------- ---------
Income before provision
for income taxes 18,470 6,405 135,558 24,434
Provision for income taxes 6,895 2,413 46,630 8,917
Minority interest -- (82) 19 299
--------- --------- --------- ---------
Net income $ 11,575 $ 4,074 $ 88,909 $ 15,218
========= ========= ========= =========
Basic net income per share $ .22 $ .09 $ 1.73 $ .37
========= ========= ========= =========
Diluted net income per
share $ .22 $ .09 $ 1.66 $ .36
========= ========= ========= =========
Shares used in computing
basic net income per share 51,759 44,272 51,521 40,674
========= ========= ========= =========
Shares used in computing
diluted net income per
share 53,532 46,527 53,716 41,757
========= ========= ========= =========
ADVANCED DIGITAL INFORMATION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 31, October 31,
2000 1999
ASSETS
Current assets:
Cash and cash $ 185,169 $ 156,548
equivalents
Accounts receivable, net 67,821 44,568
Inventories, net 48,110 33,317
Marketable equity
securities 19,349 2,222
Other current assets 10,389 5,727
------------ ------------
Total current assets 330,838 242,382
Property, plant and
equipment, net 18,864 8,712
Investments 20,972 196,544
Other non-current assets 12,400 5,336
------------ ------------
$ 383,074 $ 452,974
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 67,696 $ 48,017
Long-term debt and other
long-term liabilities 1,087 1,507
Deferred income taxes -- 64,168
Minority interest -- 324
Shareholders' equity 314,291 338,958
------------ ------------
$ 383,074 $ 452,974
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion