Mcdata misses revenue target because they refuse to cave in to EMC demands on price:
thestreet.com
and
BROOMFIELD, Colo.--(BUSINESS WIRE)--Nov. 4, 2003--McDATA(R)
Corporation (Nasdaq:MCDTA)(Nasdaq:MCDT) today announced preliminary
results for its third quarter 2003, ended October 31, 2003.
McDATA currently expects revenue to be in the range of $93 to $95
million in the third quarter, compared with the company's previous
expectation of $107 to $112 million, which includes approximately $2
million of anticipated revenue from the recent acquisition of Nishan
Systems.
"We believe end-customer demand for McDATA's products and
solutions remains solid, and we expect flat to sequential revenue
growth from two out of three of our largest OEM/Reseller partners
during the quarter," said John Kelley, McDATA's president and CEO.
"Unfortunately, the company was not able to reach agreement with its
largest OEM, EMC, in October on a variety of terms in a time frame
that would allow all orders to be fulfilled and recognized for
McDATA's third quarter. However, we continue to work closely with EMC
and value our strong, ongoing relationship."
Joe Tucci, president and CEO of EMC Corporation said, "We continue
to see solid end-user demand for McDATA products, and we value and
remain committed to our partnership with McDATA."
McDATA will announce full third-quarter 2003 results after the
close of the market on Monday, December 1, 2003. McDATA will host a
webcast beginning at 5:00 p.m. Eastern Time on December 1, which may
be accessed at |
