ADIC Q4 Sales Top $90 Million as Preliminary Numbers Confirm Sequential Growth, Operating Profitability.Business Editors/High Tech Writers REDMOND, Wash.--(BUSINESS WIRE)--Nov. 13, 2001 Special Items Reflect Effect of Economic Downturn On Investments, Sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. Advanced Digital Information Corporation (Nasdaq:ADIC) today confirmed that preliminary results for the fourth quarter ended October 31 indicate sales were over $90 million and that operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. and net income, exclusive of special items, are expected to be within the range forecasted prior to the recent terrorist attacks. On July 19, the Company announced that the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the U.S. and Europe would reduce third quarter sales to a range of $81-$85 million and that sales for the fourth quarter would likely be between $85 and $95 million. Actual third quarter sales were nearly $85 million and, at more than $90 million, sales for the recently completed fourth quarter will be in the top half of the anticipated range. Also as anticipated, the Company reported positive operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the third quarter and expects to report similar breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations or better operating results for the quarter ended October 31, in each case before special items. As a result of severely reduced values in the equity markets and the uncertainty of any recovery in equity prices, the Company said fourth quarter results will reflect a special, non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc a reduction of $8 million in the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of investments in certain private technology companies. These investments had a carrying value of $16.5 million at October 31, 2000 and, based on external factors rather than the performance of the companies themselves, the Company believes it is appropriate to reduce the value of these investments. ADIC also announced that significantly changed conditions in the Denver real estate market will result in the Company recording a liability to reflect a one-time fourth quarter charge of $2.3 million for anticipated future costs to exit surplus manufacturing and development facilities. It had previously been expected that sublease income would substantially offset this charge but continued economic weakness makes such recovery highly uncertain. The Company expects to move into its new, larger Denver facility during the current fiscal quarter. Preliminary fourth quarter results indicate the Company's cash and marketable equity securities will approximate $175 million. The Company will release its final fourth quarter and fiscal 2001 results after its independent audit is completed during the second week of December. A teleconference will be scheduled at that time to discuss final results, the outlook for first quarter, fiscal 2002 and general business conditions. The Company noted that today's press release announcing preliminary sales information is in response to extraordinary changes in external business conditions and consumer confidence since its prior teleconference on August 16, 2001 and is not expected to be a customary pattern of preliminary disclosure. About ADIC Advanced Digital Information Corporation (Nasdaq:ADIC) is a leading storage solutions provider to the open systems marketplace, offering a broad range of Intelligent Storage(TM) products designed to enhance organizations' abilities to store, protect, manage and use their rapidly growing network data. ADIC products include technology-independent 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. storage systems, specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. storage management software, and multiple-protocol storage networking (SAN/NAS) connectivity and management tools. ADIC storage products are available through a worldwide sales force and a global network of resellers and OEMs. Further information about ADIC is available at 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 the Company's preliminary fourth quarter financial results and anticipated one-time charges that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The anticipated financial results included in this release are preliminary and have not yet been audited. The words "expect", "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, purchase deferrals by customers, 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 Quarterly Report on Form 10-Q Form 10-Q See 10-Q. for the quarter ended April 30, 2001 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 after the date of this release or to reflect the occurrence of unanticipated events. ADIC is a registered trademark and Intelligent Storage is a trademark of Advanced Digital Information Corporation. All other product or service marks mentioned in this release should be considered the property of their respective owners. |
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