To be more precise:
Quantum Corporation Reports Earnings for First Fiscal 2000 Quarter
Business Wire -- July 22, 1999 [Return to Headlines]
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MILPITAS, Calif.--(BUSINESS WIRE)--July 22, 1999--Quantum Corporation (Nasdaq
NMS:QNTM) today announced results for its first fiscal quarter ended June 27, 1999 of $1.1
billion in revenue, $8.3 million in net income and earnings per share of $.05, diluted. In the year
earlier period, the company reported revenue of $1.1 billion, net income of $3 million and earnings
per share of $.02, diluted.
At a special meeting of the stockholders to be held on Friday, July 23, 1999, stockholders will vote
on a proposal, which, if approved, would separate Quantum's common stock into two individual
tracking stocks. These stocks would track the performance of the company's two major businesses,
the Hard Disk Drive Group and the DLT and Storage Systems Group.
Hard Disk Drive Group
Fiscal Q1 revenue for the Hard Disk Drive Group was $752 million on unit shipments of 6.6
million drives. In the year earlier period, revenue was $847 million on unit shipments of 5.6 million
drives. While unit shipments increased 18 percent year-over-year, revenue declined as the result of
continued, aggressive price competition in the desktop hard disk drive market. As a result, the
business reported a net loss of $43 million.
"During fiscal Q1, price declines were extremely aggressive in the desktop segment of the hard disk
drive market," said John Gannon, president of Quantum's Hard Disk Drive Group. "While
Quantum voluntarily reduced its desktop drive build plan and shipments into the channel, price
competition in this segment had a severe impact on our revenue and net income in this business."
"However, we continue to lead the industry in time-to-market, quality and asset management.
Today, Quantum has an early market lead in both the desktop and high-end segments with
leading-edge capacity and performance technologies. Our industry leadership is further reinforced
by our strong customer base, which includes all of the top PC OEMs and top Intel-based server
OEMs," said Gannon.
DLT and Storage Systems Group
Fiscal Q1 revenue for the DLT and Storage Systems Group was $331 million, up 29 percent from
$256 million in the year earlier period. Net income was $51 million, up 18 percent from $44 million
in fiscal Q1 1999, and earnings per share were $.30, diluted, on a pro forma basis, assuming
shareholder approval of tracking stock. Gross margin for the business was a record 46 percent in
fiscal Q1, primarily as a result of the record royalties the company received from its licensed
DLTtape(TM) media partners.
"We continue to be pleased with the growth of the business," said Peter van Cuylenburg, president
of Quantum's DLT and Storage Systems Group. "We continued to see strong growth of the
installed base of DLTtape technology during the quarter, reinforcing its position as the industry's
broadest, scalable tape format."
"In addition, we are also pleased with the growth in our storage systems business, with record
revenues from tape automation products," said van Cuylenburg. Revenue from the storage systems
business was $67 million for the quarter. |
