Adaptec reports record fourth-quarter and year-end results; I/O technology leader posts 43rd consecutive profitable quarter.MILPITAS, Calif.--(BUSINESS WIRE)--April 25, 1995--Adaptec (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ADPT ADPT Automated Data Processing/Telecommunications ADPT Adaptec Corporation (stock symbol) ADPT Adaptive Prediction ADPT Auger Depth Profiling Technique ADPT Automated Data Processing Telecommunications ADPT Adapter ), a leader in input/output (I/O (Input/Output) The transfer of data between the CPU and a peripheral device. Every transfer is an output from one device and an input to another. See PC input/output. I/O - Input/Output ) technology, Tuesday reported its financial results for its fourth quarter and fiscal year ended March 31, 1995. Adaptec's fourth quarter revenues were a record $130,192,000, a 28 percent increase compared to revenues of $101,754,000 for the same period last year. Net income was $29,949,000 and earnings per share were $0.56. For the same period last year, net income was $17,268,000 and earnings per share were $0.32. For the 1995 fiscal year, revenues were $466,194,000, a 25 percent increase over $372,245,000 for the 1994 fiscal year. Net income was $93,402,000, or $1.75 per share, compared with $58,950,000 or $1.10 per share for the prior fiscal year. The balance sheet at fiscal year end reflected inventory turns at six times, days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). below forty-five days and cash balances in excess of $246,000,000. "We're very happy to report such strong numbers along with our 43rd consecutive quarter of profitability," said John G. Adler, Adaptec's chairman and chief executive officer. "The results continue to clearly demonstrate market demand and preference for our I/O products. For example, our host adapter Also called a "controller" or "host bus adapter," it is a device that connects one or more peripheral units to a computer. It is typically an expansion card that plugs into the bus. IDE and SCSI are examples of peripheral interfaces that call their controllers host adapters. See host. revenue for the year grew nearly 45%, while units shipped nearly doubled over last year. We intend to invest heavily in research and development to maintain our technical edge in new hardware and software I/O solutions for all kinds of platforms -- even for non-PC based ones." The fiscal 1995 fourth quarter was successful because it delivered on several initiatives that illustrate the company's resolve to expand Adaptec's portfolio of solutions for an evolving market. This means that, not only is the company increasing market share, but it is actually helping to enlarge TO ENLARGE. To extend; as, to enlarge a rule to plead, is to extend the time during which a defendant may plead. To enlarge, means also to set at liberty; as, the prisoner was enlarged on giving bail. the overall market. During its fourth quarter the company introduced its Build a Better Server (BABS) program, an integrated set of IOware(R) solutions for enhanced performance in server and super-server environments. The company also announced its ATM initiative, for better data transfer among networked computers. Both initiatives are examples of Adaptec's strategy to exploit and leverage its "core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
During the first phase of the BABS program, the company introduced Adaptec CI/O(TM) software which provides network managers with powerful, time-saving tools for remote management and monitoring of SCSI SCSI in full Small Computer System Interface Once common standard for connecting peripheral devices (disks, modems, printers, etc.) to small and medium-sized computers. SCSI has given way to faster standards, such as Firewire and USB. subsystems in network servers. The BABS program also resulted in the introduction of a family of new SCSI host adapters The controlling electronics for SCSI contained on a printed circuit board that plugs into the computer's motherboard. A SCSI host adapter is often called a "SCSI controller." See SCSI. for the PCI bus PCI bus - Peripheral Component Interconnect , which enables servers to connect as many as 21 peripherals. Among these board-level products is the AHA(R)-3985, Adaptec's first low-cost PCI (1) (Payment Card Industry) See PCI DSS. (2) (Peripheral Component Interconnect) The most widely used I/O bus (peripheral bus). RAID adapter A device that allows one system to connect to and work with another. An adapter is often a simple circuit that converts one set of signals to another; however, the term often refers to devices which are more accurately called "controllers. . Another fourth quarter announcement that helped expand the company's available market targeted the high-speed networking market. Adaptec introduced ten new network interface cards, or NICs, based on asynchronous transfer mode See ATM. (communications) Asynchronous Transfer Mode - (ATM, or "fast packet") A method for the dynamic allocation of bandwidth using a fixed-size packet (called a cell). See also ATM Forum, Wideband ATM. ATM acronyms. Indiana acronyms. -- or ATM -- technology. These products mark Adaptec's long-term strategy to relieve networking bottlenecks for desktop computers and network servers by leveraging its established expertise in ASICs, operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. software and distribution. Ease of use is one of Adaptec's cornerstone benefits, and the company strengthened that attribute in its industry-standard AHA-1540 series of SCSI host adapters in the fourth quarter with the introduction of the AHA-1540CP. This host adapter guarantees trouble-free installation and configuration through full compliance with SCSI Plug and Play technology. "As for our outlook, you can expect us to continue concentrating on all familiar fundamentals," said F. Grant Saviers, 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. . "We will continue to focus on productivity improvements, speed in everything we do, and being the industry's lowest cost provider. In order to ensure continued growth, we will invest heavily in research and development for future product initiatives in SCSI, ATM, infrared, serial technology, and stand-alone software products. And finally, we will continue to add to established product lines, including the latest product families in the Build a Better Server program." Adaptec, Inc. (NASDAQ:ADPT), designs, manufactures and markets IOware solutions to eliminate performance bottlenecks between microcomputers, networks, and peripherals. Solutions range from simple connectivity products for single-user and small-office desktops, to intelligent subsystem, high-performance SCSI, RAID and ATM products for enterprise-wide computing and networked environments. Adaptec I/O solutions are incorporated into the products of virtually all the major computer and peripheral manufacturers around the world. Founded in 1981 and headquartered in Milpitas, Adaptec is a recognized market leader in high-performance I/O technology. Adaptec currently employs approximately 1,800 people, and with its global distribution network, serves customers worldwide. -0- Note to Editors: Adaptec, IOware and CI/O are trademarks of Adaptec, Inc., which may be registered in some jurisdictions. All other trademarks used are owned by their respective owners. -0-
Adaptec, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three-Month Twelve-Month
Period Ended Period Ended
March 31, March 31, March 31, March 31,
1995 1994 1995 1994
Net Revenues $130,192 $101,754 $466,194 $372,245 Net Income 29,949 17,268 93,402 58,950(a) Net Income Per Share 56 cents 32 cents $ 1.75 $ 1.10(a) Weighted Average Shares Outstanding 53,802 54,352 53,357 53,602 (a) Net Income and Net Income Per Share reflect the impact of a shareholder suit settlement of $2.4 million, or $0.03, respectively. CONTACT: Adaptec, Inc., Milpitas Paul G. Hansen or Christopher G. O'Meara, 408/945-8600 |
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