REDMOND, Wash. -- Advanced Digital Information Corp. (ADIC) lowered its sales expectations for the third and fourth quarters, citing the effects of customers delaying purchases as a result of the economic slowdown in both the U.S. and Europe.
In a press release Thursday, the company said it expects sales of $81 million to $85 million for the third quarter ending July 31, below an earlier estimate of $100 million.
For the fourth quarter ending Oct. 31, the company cut its sales estimate to $85 million to $95 million from a previous forecast of about $112 million.
Advanced Digital expects operating income of about break-even for the third and fourth quarters, well below Wall Street expectations. The company's operating income estimates exclude other income, and charges of about $12 million on the acquisition of Pathlight and approximately $16 million associated with a patent litigation settlement and related legal costs.
The after tax cost of the litigation settlement was substantially offset by a reduction in the number of shares issued to purchase Pathlight, although the cash payment will be reflected in third quarter results, the company said.
Thomson Financial/First Call surveys of analysts yielded average earnings estimates for Advanced Digital of 10 cents a diluted share for the third quarter and 14 cents a diluted share for the fourth quarter.
Advanced Digital said it expects its third quarter sales to increase 10% to 15% above the year-ago quarter, when the company had sales of about $66 million.
In addition, the company said it has begun shipping library products incorporating Pathlight's intelligent connectivity and SAN Management tools to its largest OEM partners.
Advanced Digital, which provides device-independent storage systems, plans to release its final results for the third quarter after the close of the market Aug. 15.
Company Web site adic.com
Gettin' body slammed today, down 20%
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