ADIC Earns Record 22 Cents Per Split Share in Third Quarter as Sales Rise 126 Percent Over Prior Year to $57.2 Million.REDMOND, Wash.--(BUSINESS WIRE)--Aug. 25, 1999-- --SURGE IN GROSS MARGIN LIFTS OPERATING INCOME Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. 25% OVER RECORD SECOND QUARTER -- ADVANCED DIGITAL INFORMATION CORPORATION (Nasdaq:ADIC) today announced sales grew by 126 percent to $57.2 million during the third quarter ended July 31, 1999 over the same period last year. Net income was six times that of third quarter last year at $4.5 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, versus $752,000, or four cents per diluted share. All per share numbers reflect a two-for-one stock split which was effective during the quarter just completed. "Third quarter results were the best for any period in our history," 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. "Sales growth persists at high levels and gross margin as a percent of sales improved almost two percentage points over the immediately preceding quarter to a 35 percent," he said. Sales grew 5.8 percent over second quarter 1999 levels while operating income grew by almost 25 percent over the same period. The Company attributed the very strong margin performance in the current quarter to a combination of product mix and volume efficiencies, while noting that margins for the year to date period have improved approximately five percentage points over the same nine-month period last year. Both branded and 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 business grew rapidly with OEM business representing approximately 16.9 percent of total sales for the current quarter. As in the preceding quarter, the Company noted that e-commerce, software and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. infrastructure companies were important elements in sales growth. It was noted that banking, financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , manufacturing, research and government also continue to be important markets for the Company's open system storage solutions. Cash increased by $16.9 million during the quarter while growing by $3.4 million over the nine month period. The large third quarter increase reflects net increased short and long-term borrowings of $8.3 million, quarterly earnings and non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) of $5.7 million, effects from more efficient use of working capital as well as cash from the exercise of stock options during the period. These increases in cash were partially offset by investments made during the quarter, including the Company's $7.0 million investment in @Backup, an Internet-based backup and data access service company. With more than 45,000 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 as well as a suite of innovative software solutions and Storage Area Networking (SAN) products, ADIC is a leading global provider in the growing market to manage and protect information in computer networks. Marketed under ADIC, ADIC/GRAU and OEM partner brands, including Dell, Exabyte and Unisys, the Company's automated tape libraries are available with DLTtape(TM), D2, half-inch, AIT, 4mm and 8mm tape technologies and are supported by leading backup and storage management software products for Windows NT (Windows New Technology) A 32-bit operating system from Microsoft for Intel x86 CPUs. NT is the core technology in Windows 2000 and Windows XP (see Windows). Available in separate client and server versions, it includes built-in networking and preemptive multitasking. , UNIX UNIX Operating system for digital computers, developed by Ken Thompson of Bell Laboratories in 1969. It was initially designed for a single user (the name was a pun on the earlier operating system Multics). and MVS (Multiple Virtual Storage) Introduced in 1974, the primary operating system used with IBM mainframes (the others are VM and DOS/VSE). MVS is a batch processing-oriented operating system that manages large amounts of memory and disk space. operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. . The Company's own storage management tools include 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. (TM) direct data access software which provides network users shared access to information stored in automated libraries. A pioneer in marketing products for Storage Area Networks, ADIC offers Fibre Channel routers Overview A channel router is a specific variety of router for integrated circuits. Normally using two layers of interconnect, it must connect the specified pins on the top and bottom of the channel. and tape libraries with direct Fibre Channel connectivity. Further product information is available via the Internet at http://www.adic.com. 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", variations of such words, 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, year 2000 issues, 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. Reference is made to the Company's Registration Statement on Form S-3 filed with the SEC on August 6, 1999 for a more detailed description of such factors. 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 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. -0-
ADVANCED DIGITAL INFORMATION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share amounts)
Three months ended Nine months ended
July 31, July 31,
(Unaudited) (Unaudited)
1999 1998 1999 1998
-------- -------- -------- --------
Net sales $ 57,191 $ 25,314 $160,379 $ 72,986
-------- -------- -------- --------
Cost of sales 37,075 18,544 105,830 51,791
-------- -------- -------- --------
Gross profit 20,116 6,770 54,549 21,195
Selling and administrative
expenses 9,408 4,978 27,502 12,944
Research and development
expenses 3,440 818 9,490 2,063
-------- -------- -------- --------
Operating profit 7,268 974 17,557 6,188
Other income 40 159 472 1,238
Income before provision
for income taxes 7,308 1,133 18,029 7,426
Provision for income taxes 2,663 381 6,504 2,379
Minority interest 98 -- 381 --
-------- -------- -------- --------
Net income $ 4,547 $ 752 $ 11,144 $ 5,047
======== ======== ======== ========
Basic net income per share $ 0.23 $ 0.04 $ 0.56 $ 0.26
======== ======== ======== ========
Diluted net income per share $ 0.22 $ 0.04 $ 0.54 $ 0.25
======== ======== ======== ========
Shares used in computing
basic net income per share 19,976 19,512 19,731 19,460
======== ======== ======== ========
Shares used in computing
diluted net income per
share 21,025 19,810 20,496 19,810
======== ======== ======== ========
ADVANCED DIGITAL INFORMATION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
July 31, 1999 Oct. 31, 1998
(Unaudited)
-------- --------
ASSETS
Current assets:
Cash $ 31,658 $ 28,226
Accounts receivable, net 34,764 31,797
Inventories, net 34,078 32,294
Other current assets 4,261 4,975
-------- --------
Total current assets 104,761 97,292
-------- --------
Property, plant and equipment, net 7,893 7,351
Investment and other assets 17,022 7,764
-------- --------
$129,676 $112,407
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 43,366 $ 30,711
Long-term debt and other
long-term liabilities 9,102 18,668
Minority interest 406 25
Shareholders' equity 76,802 63,003
-------- --------
$129,676 $112,407
======== ========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion