ADIC Third Quarter Sales Push $85 Million As Growth Persists Despite Economic Downturn; Pro Forma EPS of 4 Cents Before $29.5 Million in Acquisition-related Charges.Business Editors REDMOND Redmond, city (1990 pop. 35,800), King co., W Wash., a suburb of Seattle, on Lake Sammamish; inc. 1912. Its economy centers around computer software (Microsoft Corp. , Wash.--(BUSINESS WIRE)--Aug. 15, 2001 Advanced Digital Information Corporation (Nasdaq:ADIC) today announced sales grew 15.7 percent to nearly $85.0 million for the third quarter ended July July: see month. 31, 2001, versus restated sales of $73.4 million for the same period a year ago. Including one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. acquisition and legal settlement charges of $29.5 million, the Company lost $18.6 million in the quarter, or 30 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. . Excluding charges related to the acquisition of Pathlight Technology in May and the associated litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement in June June: see month. , pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. were approximately $2.8 million, or four cents per share. Excluding the effect of gains on an asset sale, restated Company earnings were $7.1 million, or 11 cents per share, during the third quarter of fiscal 2000. All sales and earnings numbers for current and preceding periods reflect the Company's acquisition of Pathlight Technology on a pooling-of-interests basis. Historical periods have been restated to conform accounting policies and to present combined results of ADIC and Pathlight as if they had been operated as one business. Sales from Pathlight to ADIC have been eliminated in the combined and restated results but such results do not otherwise reflect efficiencies which management believes might have been obtained had they been operated as one business. ADIC management believes third quarter revenue represents comparable annual revenue growth of approximately 26-27 percent. Pathlight revenues are not separable sep·a·ra·ble adj. Possible to separate: separable sheets of paper. sep subsequent to the acquisition but ADIC has previously reported Pathlight revenue, exclusive of sales to ADIC, was $1.3 million during the quarter ended April 30, 2001 -- Pathlight's last reporting period as a separate company. Reducing current third quarter revenues by a similar amount and comparing to ADIC revenues of $66.0 million, as originally reported for last year's third quarter, is the basis for calculating approximate comparable growth. Chairman and Chief Executive Officer Peter van Oppen said, "We are disappointed that a global 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. has caused our customers to become increasingly cautious and yielded results lower than our originally anticipated sales and profit numbers. But, we believe ADIC continues to grow faster than its peers and are pleased to remain profitable, both on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma operating and net income basis, despite the economic weakness." The Company cited several milestones during the quarter. It made initial shipments of major new products to its two largest 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 partners as well as delivery of both OEM and ADIC branded products that integrate Pathlight storage networking and SAN management technology. In addition, the Company continued expansion of its branded sales force and announced a commitment to approximately double its manufacturing facilities in Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. . 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 also expect to continue increasing our R&D expenditures so as to further solidify so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. our position as a leader in Intelligent Storage Solutions. There is considerable evidence that the underlying demand for our products and technologies will continue to grow in the long term." "Many companies are cutting back and absorbing substantial restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in this environment," said Chief Financial Officer Jon Gacek. "We are pleased that continued revenue growth, profitability and our balance sheet strength give us the opportunity to build our business in these challenging times so as to further enhance our strategic and competitive position. We also fully expect to remain profitable during this economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. and to return to more normal levels of profitability as the economy improves." After adding back acquisition-related costs, gross margin percentage declined to 27.5 percent compared to 31.2 percent in the second quarter and 35.5 percent for the same quarter last year. The decline over last year's number is primarily a result of more than doubling the Company's OEM business, which typically carries a lower gross margin, and a resultant This article is about the resultant of polynomials. For the result of adding two or more vectors, see Parallelogram rule. For the technique in organ building, see Resultant (organ). In mathematics, the resultant of two monic polynomials increase in OEM business to 42 percent of total revenues for the quarter. Lower volumes and, to a lesser extent, pricing pressures contributed to the further sequential decline from second quarter 2001. OEM sales were approximately 45 percent and 38 percent of revenues for the first and second quarters of fiscal 2001, respectively. Due to economic uncertainty, the Company declined to make any forecasts for fiscal 2002 revenue but reiterated that revenue for the quarter ending October 31, 2001 is expected to total between $85 million and $95 million. Conference Call There will be a conference call to discuss the third quarter fiscal 2001 earnings at 8:30 a.m. (ET) on Aug. 16, 2001. The call can be accessed live on our website at www.adic.com/ir. 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, including Dell, EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. , Fujitsu-Siemens 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) . 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Company's future products and services and future operating results that are subject to risks and uncertainties that could cause actual results to differ materially from those projected. 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 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 is a registered trademark and Intelligent Storage is a trademark of Advanced Digital Information Corporation. All other product or company names should be considered the property of their owner.
ADVANCED DIGITAL INFORMATION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except for per share amounts)
(Restated)
Three months ended Nine months ended
July 31, July 31,
2001 2000 2001 2000
--------- --------- --------- ---------
Net sales $ 84,950 $ 73,402 $273,509 $206,125
Cost of sales 61,592 47,344 192,561 131,728
Pathlight acquisition costs 4,109 -- 4,109 --
--------- --------- --------- ---------
Gross profit 19,249 26,058 76,839 74,397
Selling and administrative
expenses 15,945 14,004 45,539 38,790
Research and development
expenses 7,113 5,066 20,155 14,432
Crossroads settlement costs 16,580 165 16,974 165
Pathlight acquisition costs 8,837 -- 8,837 --
--------- --------- --------- ---------
Operating profit (loss) (29,226) 6,823 (14,666) 21,010
Gain on sale of Crossroads -- 14,345 -- 88,791
Other income 3,967 2,902 9,451 9,033
--------- --------- --------- ---------
Income (loss) before provision
for income taxes (25,259) 24,070 (5,215) 118,834
Provision for income taxes (6,616) 7,631 210 39,740
Minority interest -- -- -- 18
--------- --------- --------- ---------
Net income (loss) $(18,643) $ 16,439 $ (5,425) $ 79,076
========= ========= ========= =========
Basic net income (loss)
per share $ (.30) $ .28 $ (.09) $ 1.35
========= ========= ========= =========
Diluted net income (loss)
per share $ (.30) $ .26 $ (.09) $ 1.25
========= ========= ========= =========
Shares used in computing basic
net income per share 61,331 58,837 59,958 58,625
========= ========= ========= =========
Shares used in computing
diluted net income per share 61,331 63,027 59,958 63,359
========= ========= ========= =========
ADVANCED DIGITAL INFORMATION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Restated)
July 31, 2001 Oct. 31, 2000
--------- ---------
ASSETS
Current assets:
Cash $ 153,801 $ 194,268
Accounts receivable, net 76,588 70,092
Inventories, net 60,720 37,963
Marketable equity securities 17,131 19,349
Other current assets 16,754 11,829
--------- ---------
Total current assets 324,994 333,501
Property, plant and equipment, net 27,218 19,419
Service parts for maintenance, net 14,468 10,523
Investments 19,328 20,972
Other non-current assets 15,258 14,830
--------- ---------
$ 401,266 $ 399,245
========= =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities $ 69,825 $ 71,480
Long-term debt 1,172 1,279
Shareholders' equity 330,269 326,486
--------- ---------
$ 401,266 $ 399,245
========= =========
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion