Exabyte Announces First Quarter Results wbASSETt
PR Newswire - April 14, 1999 07:00
BOULDER, Colo., April 14 /PRNewswire/ -- Exabyte Corporation (Nasdaq: EXBT) today reported revenue for the quarter ended April 3, 1999 of $62,650,000 compared with $80,750,000 for the comparable period in 1998 and $63,196,000 in the previous quarter. The net loss for the quarter was $3,500,000 or $0.16 per share compared with net income of $2,029,000 or $0.09 per share for the comparable period last year and a loss of $5,285,000 or $0.24 per share in the fourth quarter of 1998.
"Revenues were essentially flat from the prior quarter's level, with an improvement in our reseller channel sales offset by a modest decline in OEM sales. The loss for the quarter was reduced significantly from the prior quarter's level as a result of a $3.1 million reduction in operating expenses and a 3% improvement in the gross margin," commented William L. Marriner, chairman, president and chief executive officer. "The two ingredients essential to restore revenue growth and profitability are the introduction of a compelling portfolio of products and solutions and the rebuilding of our channels through effective marketing programs. Progress was made on both fronts in the first quarter. We launched in late March the X200 library, the latest member of a family of Storage Area Network (SAN)-ready automated tape libraries. The X200 is shipping today with our Mammoth drive technology and will be upgradable later this year to 30 terabytes of storage capacity with our Mammoth 2 technology. Like other members of our Mammoth and DLTtape(TM) family of automated libraries, the X200 provides the performance and the high availability feature set that the market is demanding. We will soon be announcing Exabyte's initiatives in network storage management, complete with our own automation products and management software and a set of industry partnerships to provide complete certified end-to-end solutions to the NT and Unix markets.
"We've also been working diligently to develop our reseller channels with the introduction of several new programs that we will formally announce later this month. While the revenue from these new and existing channel partners ramped modestly in the first quarter, we are continuing to bring more of these channel partners aboard. Our Exabyte Solutions Partner (ESP) program now has 19 participants who are focused on network storage opportunities with high-end solutions. The Business Partner Alliance, launched at the beginning of March, already has 37 signed partners, with substantially more expected in the second quarter. Unlike several of our competitors, we will not compete directly with these partners, and we are committed to providing them with unparalleled support to ensure their success.
"While encouraged with the reception of our resellers to our channel initiatives and with the OEM and reseller interest in the introduction of our Mammoth 2 technology later this year, we are also continuing to work the expense side of the profitability equation. We reduced operating expenses by 13% sequentially in the first quarter and have set in motion activities to outsource our domestic service repair operations as well as some information systems functions. We have selected highly qualified partners for both activities and have begun the implementation of our plans."
Commenting on the balance sheet, Steve Smith, vice president and chief financial officer, said, "Inventories grew by $3.2 million on lower than projected revenues. Capital expenditures were again well controlled with a net reduction in property and equipment. While cash declined during the quarter with the growth in receivables and inventories, the cash level is a healthy $64 million, $16 million higher than a year ago."
The foregoing includes forward-looking statements related to the company's business prospects. Words such as "believes," "anticipates," "expects," "intends," "plans" and similar expressions are intended to identify forward- looking statements, but are not the exclusive means of identifying such statements. Each of such statements is subject to one or more risks. The actual results that the company achieves may differ materially from any forward-looking statements due to risks and uncertainties related to competition, product development and management of business and product transitions as noted in the company's 1998 Form 10-K. Please refer to the company's Form 10-K for a description of such risks.
Exabyte Corporation is a leading supplier of tape storage solutions for the data-intensive application and database server markets. Headquartered in Boulder, Colorado, Exabyte designs, manufactures and markets industry leading data storage products including 8mm and Mammoth technology tape drives; Mammoth, 8mm and DLTtape(TM) automated tape libraries; and premium quality media. Exabyte markets its products through an extensive network of OEM, distributor and reseller business partners.
Exabyte is a registered trademark. All other trademarks and registered trademarks are property of their respective owners.
For information on Exabyte products and services, call:
Asia/Pacific: 65-271-6331
Europe: 31-30-2548800
North America: 1-800-EXABYTE
Visit Exabyte on the World Wide Web at www.exabyte.com
For Exabyte investor and financial information, call: (201) 946-0091
EXABYTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
April 3, April 4,
1999 1998
Net sales $62,650 $80,750
Cost of sales 47,111 56,904
Gross profit 15,539 23,846
Operating expenses:
Selling, general and administrative 13,250 13,444
Research and development 7,784 7,131
Income (loss) from operations (5,495) 3,271
Other income (expense), net 192 (196)
Income (loss) before income taxes (5,303) 3,075
(Provision) benefit for income taxes 1,803 (1,046)
Net income (loss) ($3,500) $2,029
Basic:
Net income (loss) per share ($0.16) $0.09
Weighted average number of
common shares outstanding 22,193 22,342
Diluted:
Net income (loss) per share ($0.16) $0.09
Weighted average number of common
and potential common shares outstanding 22,193 22,460
EXABYTE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
ASSETS
April 3, January 2,
1999 1999
Current assets:
Cash and investments $64,450 $70,716
Accounts receivable, net 38,507 38,014
Inventories 30,202 26,997
Other current assets 20,018 19,905
Total current assets 153,177 155,632
Property and equipment, net 27,632 28,396
Other assets 25,316 23,808
$206,125 $207,836
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $17,644 $16,032
Accruals and other liabilities 19,212 18,071
Total current liabilities 36,856 34,103
Long-term liabilities 6,496 7,461
Stockholders' equity:
Common stock 23 23
Capital in excess of par value 66,694 66,693
Treasury stock, at cost (2,742) (2,742)
Retained earnings 98,798 102,298
Total stockholders' equity 162,773 166,272
$206,125 $207,836
SOURCE Exabyte Corporation
/CONTACT: Investors: Exabyte Corporation, 201-946-0091; or Press: Ginny
Youtsey of Exabyte Corporation, 303-417-7269/
/Web site: exabyte.com |
