McDATA Reaffirms Financial Targets for Fiscal First Quarter.BROOMFIELD, Colo. -- McDATA(R) Corporation (Nasdaq:MCDTA) (Nasdaq:MCDT MCDT Micro Credit Development Trust SACCO (Uganda microfinance) MCDT Microsoft Certified Desktop Technician ) today announced preliminary results for its first quarter fiscal 2005 (Q1 05) in line with the forecasted range the Company provided on its fourth quarter fiscal 2004 conference call hosted on February 24, 2005. McDATA expects to report revenue for Q1 05 in a range of $98 to $99 million, within the Company's previous range of $98 to $103 million. McDATA expects to report non-GAAP net income per share in a range of $0.02 to $0.03 per diluted share, in line with the Company's previous non-GAAP range of $0.01 to $0.03. McDATA disclosed its preliminary results during its CNT (Carbon NanoTube) See nanotube. acquisition update conference call hosted this morning. These preliminary results are based on management's initial estimates of operating results and there can be no assurance that the amounts may not change. These preliminary results compare to net revenue of $105.7 million and diluted non-GAAP net income per share of $0.06, for the fourth quarter of fiscal 2004 (Q4 04) and net revenue of $97.2 million and non-GAAP diluted net income per share of $0.01 for the first quarter of fiscal 2004 (Q1 04). GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net income for Q4 04 was 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 $(0.0) per share. McDATA's Q4 04 non-GAAP net income excluded charges related to the amortization of deferred compensation and amortization of purchased intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. . McDATA's Q4 04 non-GAAP tax rate was two percent, and resulted in a benefit to non-GAAP net income of approximately $2 million, or $0.02 per diluted share, primarily related to R&D tax credits and deductions for foreign sales on the Company's 2003 tax return, and a corresponding increase in the Company's estimates for these two beneficial items with respect to FY 04. GAAP net loss for Q1 04 was $(9.8) million, or $(0.09) per diluted share. McDATA's Q1 04 non-GAAP results excluded charges related to the amortization of deferred compensation and purchased intangible assets. In addition, the company recorded a restructuring charge 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. related to a facility closure, and its share of the operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. associated with McDATA's investment in Aarohi, both of which were excluded for the purposes of the non-GAAP results. Non-GAAP results are a supplement to financial statements based on accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, (GAAP). The non-GAAP results exclude certain expenses and income to provide what McDATA believes is a more complete understanding of our underlying operational results and trends. Non-GAAP results are one of the primary indicators management uses for planning and forecasting of future periods. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. McDATA will hold a conference call to discuss first quarter results on Monday, May 23, 2005, at 8:00 a.m. ET. The conference call will be webcast simultaneously at www.mcdata.com. About McDATA (www.mcdata.com) McDATA (Nasdaq:MCDTA)(Nasdaq:MCDT) is the only data infrastructure solutions provider that can deliver a Global Enterprise Data Infrastructure- a globally connected, centrally managed and highly optimized data network. With more than 20 years of storage networking experience, McDATA is trusted in the world's largest data centers, connecting more than two-thirds of all networked data and enabling information access anytime, anywhere. Forward-Looking Statements This press release contains statements about expected future events that are forward-looking and subject to risks and uncertainties. Readers are urged to consider statements that include the terms "believes", "belief", "expects", "plans", "objectives", "estimates", "anticipates", "intends", "targets", or the like to be uncertain and forward-looking. Factors that could cause actual results to differ and vary materially from expectations include, but are not limited to, McDATA's relationships with 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. , 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) and HDS (Hitachi Data Systems, Santa Clara, CA, www.hds.com) A leading provider of high-end storage hardware, software and services. Part of the Information Systems & Telecommunications Division of Hitachi Ltd. and the level of their orders, aggressive price competition by numerous other SAN and IP switch suppliers, 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 qualification of our new products, manufacturing constraints and other risk factors that are disclosed in McDATA's filings with the Securities and Exchange Commission. These cautionary statements by McDATA should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by McDATA. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. McDATA does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |
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