Home - Yahoo! - Help
--------------------------------------------------------------------------------
[ Business | US Market | By Industry | IPO | AP | S&P | International | PRNews | BizWire | CCN ]
--------------------------------------------------------------------------------
Related Quotes
MXTR
5 9/32
+11/32
delayed 20 mins - disclaimer
Thursday October 28, 4:51 pm Eastern Time
Company Press Release
SOURCE: Maxtor Corporation
Maxtor Reports Results for Third Fiscal 1999 Quarter
Company Maintains Positive Gross Margin Despite Continued Aggressive Pricing Environment
MILPITAS, Calif., Oct. 28 /PRNewswire/ -- Maxtor© Corp. (Nasdaq: MXTR - news) today reported revenue of $589.3 million for its third fiscal 1999 quarter, compared to revenue of $599.2 million in the third quarter of fiscal 1998. The company's net loss was $40.3 million in the third fiscal quarter, or $(.38) per share. This compares to net income of $6.1 million or $.08 per diluted share in the third quarter of fiscal 1998. The loss of $40.3 million for the third fiscal quarter includes two special items: a non-operating gain of $22 million from the sale of stock acquired as a result of the merger of a former subsidiary; and $7.6 million in expenses associated with the acquisition of Creative Design Solutions. Excluding both of these items, the company's loss would have been $54.6 million or $(.51) per share compared to $53 million or $(.50) per share in the immediately preceding quarter.
``The industry environment remained tough in the third quarter, with pricing again very aggressive,' said Mike Cannon, Maxtor's president and CEO. ``Despite this, we were able to maintain a positive gross margin and report results from our hard drive business comparable to the prior quarter. We also continued to manage our balance sheet well, exiting the quarter with $285 million in cash and marketable securities.
``We shipped nearly 5.9 million units in the third quarter, up 18.5% from the second quarter. This increase in units was driven by our continued consistent execution on new product development and production ramps. In addition to the strong demand for our 6.8 GB per disk products, we announced and began shipping two new products during the quarter - our 9.1 GB per disk DiamondMax© 36 and DiamondMax VL 17.'
Cannon said that the formation of its Network Systems Group during the quarter positions the company to be a strong participant in the emerging NAS market. ``We believe that the MaxAttach network appliance and the associated Reflect-It software we announced last week position Maxtor well in the emerging entry-level NAS market,' Cannon said. According to IDC, the entry-level and workgroup-level NAS appliance markets represent one of the fastest growing segments in the computing marketplace. Combined, these market opportunities are expected to grow from $963 million in 1998 to $3.9 billion in 2002.
``As that market grows and develops, we expect Maxtor to be a leading participant,' Cannon continued. ``We are optimistic about our ability to be successful in this area. Our network systems efforts will be our next major thrust as we seek to build the value of the company over time'
This release contains forward-looking statements concerning the hard disk drive industry and Maxtor's execution. These statements are based on current expectations and are subject to risks and uncertainties which could materially affect the company's results, including, but not limited to, market demand for hard disk drives, market acceptance of the company's products, the company's ability to execute future production ramps and utilize manufacturing assets efficiently, changes in product and customer mix, pricing trends, and actions by competitors. These and other risk factors are contained in Maxtor's Registration Statement on form S-3 as well as in its periodic reports filed with the SEC.
About Maxtor
Maxtor Corporation is a leading supplier of information storage solutions. Maxtor has been the fastest growing supplier of hard disk drives over the past two years, more than doubling its share of the desktop market during that time. The company's current hard disk drive products include the award- winning DiamondMax and DiamondMax Plus line of products for mainstream and high-performance personal computers, the DiamondMax VL line for sub-$700 PCs and consumer electronics opportunities. For network file sharing applications, Maxtor offers the new MaxAttach line of network attached storage appliances. Maxtor's market leadership position has been built by consistently providing leadership products, and by delivering superior flexibility and support for its customers. More information about Maxtor and its products can be found at maxtor.com or by calling toll-free (800) 2-MAXTOR. Maxtor is traded on NASDAQ under the MXTR symbol.
MAXTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
October 2, December 26,
1999 1998
(Unaudited)
ASSETS
Current assets:
Cash and marketable
securities $285,016 $227,629
Accounts receivable, net 219,187 317,758
Inventories, net 123,490 153,192
Prepaid expenses and other 17,849 45,198
Total current assets 645,542 743,777
Property, plant and
equipment, net 146,259 108,290
Goodwill, net 47,654 --
Other intangible
assets, net 10,079 --
Other assets 12,806 11,346
Total assets $862,340 $863,413
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings,
including current portion
of long-term debt $9,770 $5,261
Accounts payable 374,382 427,737
Accrued and other
liabilities 113,289 115,937
Total current
liabilities 497,441 548,935
Deferred revenue 1,358 --
Long-term debt 113,173 145,046
Total liabilities 611,972 693,981
Total stockholders'
equity 250,368 169,432
862,340 863,413
MAXTOR CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per shareamounts)
(Unaudited)
Three months ended Nine months ended
Oct. 2, Sept. 26, Oct. 2, Sept. 26,
1999 1998 1999 1998
Total revenue 589,321 599,797 1,795,499 1,680,679
Total cost of
revenue 575,488 526,600 1,678,916 1,482,751
Gross profit 13,833 73,197 116,584 197,928
Operating expenses:
Research and
development 46,472 40,189 141,897 110,285
Selling, general and
administrative 21,092 18,643 63,211 52,958
Stock compensation
expense 520 1,160 2,017 11,068
Acquired in-process
technology 7,028 -- 7,028 --
Amortization of
goodwill and
intangible assets 598 -- 598 --
Total operating
expenses 75,710 59,992 214,751 174,311
Income (loss) from
operations (61,877) 13,205 (98,168) 23,617
Interest expense (3,349) (6,573) (9,970) (24,109)
Interest and other
income 3,088 1,537 11,508 3,936
Gain on sale
of investment 21,995 -- 44,120 --
Income (loss) before
income taxes (40,143) 8,169 (52,510) 3,444
Provision for
income taxes 132 2,091 1,632 2,269
Net Income (loss) (40,275) 6,078 (54,142) 1,175
Net income (loss) per
share - basic $ (0.38) $0.10 $ (0.53) $0.06
Net income (loss) per
share - diluted $ (0.38) $0.08 $ (0.53) $0.02
Shares used in per share calculation
-basic 106,713,093 59,515,691 102,890,681 19,991,259
-diluted 106,713,093 76,860,814 102,890,681 55,491,542
SOURCE: Maxtor Corporation
--------------------------------------------------------------------------------
More Quotes and News: Maxtor Corp (NasdaqNM:MXTR - news)
Related News Categories: computer hardware, computers, earnings
--------------------------------------------------------------------------------
Help
--------------------------------------------------------------------------------
Copyright 1994-1999 Yahoo! All Rights Reserved. Copyright ¸ 1999 PRNewswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
See our Important Disclaimers and Legal Information.
Questions or Comments? |
