Hi Baker - There were not any significant block trades (ie. over 10,000 shares) today, but we did get one after hours trade for 900 shares at $6 1/8.
There were three 2,500 share blocks at $6.00 around 3:47PM.
Other trades included three 5,000 blocks at $6.00 at 1:37PM and 6,800 shares at 12:15 PM.
Here is the text of the press release:
Mylex Reports Second Quarter 1998 Results; Provides Details on Third Quarter
Corporate Restructuring Charge
FREMONT, CALIF. (July 28) BUSINESS WIRE -July 28, 1998--Mylex
Corporation (NASDAQ:MYLX) today reported a net loss for the second
quarter ended June 27, 1998 of $2.1 million, or ($0.10) a share, on net
sales of $32.1 million.
This compares with a net loss of $1.4 million, or ($0.07) a share, on
net sales of $26.9 million in the same quarter of the prior year. Sales
improved 19% from second quarter 1997. The year-over-year increase is
primarily attributable to a growth in sales to existing OEM customers,
as well as increased acceptance, and resulting sales, of Mylex's new
RAID controller product portfolio. The net loss for the second quarter
of 1998 was greater than expected, principally due to higher than
anticipated litigation expenses and the settlement of a claim against
the Company.
For the six-month period ended June 27, 1998, net sales totaled $60.5
million, compared to $62.8 million in the corresponding period last
year. The net loss for the six months ended June 27, 1998 totaled $4.0
million, or ($0.20) per share, compared to a net loss of $4.2 million,
or ($0.20) per share, for the first six months of 1997.
Al Montross, president and CEO, commented, "While we are pleased with
the progress being made in sales, our operating model had to change in
order to restore Mylex to profitability in an acceptable time frame.
During the second quarter, Mylex analyzed each of its business segments
based on the near-term market potential, the projected financial
investment, and the strategic opportunity. The corporate restructuring
plan implemented in early third quarter, resulting in large part from
this analysis, reflects our determination that the greatest
opportunities for Mylex today lie in the RAID market where we clearly
have a competitive advantage."
As a result of this strategic decision, on July 10, 1998 the Company
announced a 7% workforce reduction, and subsequently discontinued the
development activities of its Network Power & Light(TM) (NP&L(TM))
division. Concurrent with the division closure, Mylex re-assigned some
employees to other areas of the Company and instituted a workforce
reduction affecting 20 NP&L employees.
"When Mylex first conceived the idea for NP&L in 1996, our vision was
to create a new division that would dramatically simplify the cost and
complexity of networking," said Montross. "The division made great
strides in this area, developing thin- client server technology that
positioned us as one of the leaders in this prospective market.
However, one of our principal goals in restructuring was to more
closely align corporate resources with near-term market opportunities.
Recent market changes, specifically improvements in PC server
manageability and a precipitous drop in retail prices, would have
required the Company to incur substantial additional development
expenses to be competitive in this market. As a result, the Company was
forced to make the tough decision to discontinue NP&L's development
activities in order to achieve our profitability goal in the near term.
By discontinuing these development efforts, we can now devote our full
attention to Mylex's core RAID controller business, and continue our
aggressive strategy to quickly return the business to profitability."
The financial impact of all restructuring actions will be recorded in
the third quarter of 1998. The Company expects a non-recurring charge
in the range of $4.0 million to $4.5 million pre-tax for the quarter
ended September 26, 1998. The non-recurring charge will include
restructuring costs related to severance compensation, facilities
consolidation, and the write-off of assets utilized in affected
operations, as well as incurring additional cost of sales for the
write-off of associated inventory. The effect of these actions is
estimated to save approximately $2.0 million per quarter in pre-tax
operating expenses on a going forward basis.
"Mylex undertook this restructuring plan with four specific objectives
in mind," continued Montross. "These objectives were: 1) to focus
development efforts on products and markets where the Company possesses
core competencies and can command significant market share, 2) to
assign ample corporate resources to the task of successfully capturing
the opportunities presented by increased RAID penetration in our
segment of the market, 3) to maintain the infrastructure necessary to
continue to deliver superior service and support to our customers, and
4) to reduce overall operating expenses by streamlining the
organization. We believe we have successfully achieved these objectives
under our new operating model. With a strong new product portfolio, as
evidenced by over fifteen recent design wins and numerous TPC-C
performance world-records, Mylex is positioned for growth and is on its
way to profitability."
This release contains forward-looking information with respect to
plans, projections or future performance of the Company, the occurrence
of which involve certain risks and uncertainties that could cause
actual results to differ materially. These risks and uncertainties
include, without limitation, changes in customer order patterns,
particularly those resulting from fluctuations in actual or projected
server shipments; demand and competition for the Company's existing and
new products, particularly its RAID controller and SCSI host adapter
products; component availability; pricing pressures; the ability of the
Company to ship ordered product in a timely manner; business conditions
and growth in the computer industry and general economy; instability in
foreign economies, particularly in Asia; the capability of the Company
to meet the rapidly changing needs of its markets through timely
product enhancements or new product introductions; the risk of
inventory obsolescence due to shifts in market demand or other causes;
the risk of a Company product being incompatible with new products of
other companies; unanticipated costs and risks of litigation; and other
risks and uncertainties detailed in the Company's filings with the
Securities and Exchange Commission, including its 1997 Form 10-K and
Form 10Q for the period ended March 27, 1998. These forward-looking
statements speak only as of the date hereof, and the Company disclaims
any intent or obligation to update such statements. About Mylex
Founded in 1983, Mylex Corporation is an ISO 9001-certified developer
of high-performance hardware and software for moving, storing,
protecting and managing data in network and desktop environments.
Ranked as the No. 1 supplier of RAID controllers in the non-captive
network systems disk array market in the 1997, 1996 and 1995 DISK/TREND
reports, Mylex produces high-performance RAID controller subsystems,
SCSI adapters and complementary computer products for network servers,
mass storage systems, workstations and system motherboards. Mylex
products are sold globally through a network of OEMs, major
distributors, VARs and system integrators. Mylex Corporation is
headquartered at 34551 Ardenwood Blvd., Fremont, CA. 94555, and can be
reached by phone at 510/796-6100 or toll free at 800/77-MYLEX, by fax
at 510/745-8016 or on the Internet at mylex.com.
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