....Chase H&Q analyst Lewis said that sales of some of Advanced Digital's large storage library products, aren't growing, particularly in Europe, and are actually declining. However, he expects them to rebound "to some degree." At the same time, the company is ramping up new products and has forged a new relationship with International Business Machines Corp. (IBM), he said.
"It's not an issue that they are losing share, it's really just that they are in a transition period and going forward, we expect accelerated growth," he said.
The revenue for the second quarter was below what the company historically posts, added Lewis.
Advanced Digital is the premier player in the tape storage library business and the shortfall in revenue, which is pushing the stock lower, was in the large library business, primarily in Europe, said Jeffrey Van Sinderen, an analyst at B. Riley & Co.
The company's core business, smaller library storage, was up about 50%, he added....snip...
Source: WSJI
Jim |
