Possibly in sympathy with the McData warning. EMC is apparently a large customer of theirs, so EMC is down also...
Regards,
John
McDATA Revises First-Quarter Revenue and EPS Guidance
BROOMFIELD, Colo., Apr 4, 2002 /PRNewswire-FirstCall via COMTEX/ -- McDATA(R) Corporation (Nasdaq: MCDTA chart, msgs,
MCDT chart, msgs), the worldwide leader in open storage networking solutions, today revised its first-quarter revenue and earnings
per share (EPS) guidance. For the quarter that just ended March 31, 2002, McDATA now estimates that revenue will be in a range
of $62 to $64 million, compared to previous guidance in a range of $73 to $78 million. This decline was driven by further order
reductions by McDATA's largest customer in March. As a result, the company now expects pro forma EPS for the first quarter to
be in a range of a loss of $(0.04) to $(0.07), excluding non-cash deferred compensation and amortization charges, compared to its
previous guidance of a loss of $(0.02) to $(0.04). These estimates are preliminary and may be adjusted during the company's
normal close process, and also exclude any potential one-time charges, such as charges related to 1Gb/s inventory adjustments
that may become necessary as a result of the revenue shortfall. The company is reviewing the need for any one-time charges and
will provide further detail on the quarter when it reports final results on April 18th.
"Despite a continuing strong pipeline, and revenue results generally in line with expectations for most of our channels, a further
order reduction from our largest customer was the primary cause of the shortfall," said Jack McDonnell, chairman and chief
executive officer of McDATA. "These revenue results suggest that McDATA is being adversely affected, in part, by delayed IT
spending in the high-end sector of the storage market, likely a result of the unstable economy and related reduced IT infrastructure
spending thus far in 2002, and by a current lack of generally available 2Gb/s products. However, in mid-May McDATA's 2Gb/s
Intrepid(TM) 6000 Series Directors and 2Gb/s 32-port Sphereon(TM) 3000 Series Switch will become generally available, with its
2Gb/s 16-port Sphereon(TM) 3000 Series Switch becoming available in June." |
