ADIC Q4 Sales of $91 Million Bring Fiscal Year Total to $365 Million as Annual Growth
Tops 25 Percent; Sequential Quarterly Sales Growth Resumes, Further Growth Anticipated
REDMOND, Wash.--(BUSINESS WIRE)--Dec. 12, 2001--ADVANCED DIGITAL INFORMATION
CORPORATION today announced sales for its fourth fiscal quarter
ended Oct. 31 grew eight percent over the same quarter last year to $91.2 million, and grew nearly
26 percent to $364.7 million for the fiscal year.
Despite economic concerns, sequential quarterly sales grew approximately seven percent from the
immediately preceding quarter ended July 31. Pro forma earnings, after adjustment for previously
announced acquisition costs and other one-time items, were approximately $2.3 million, or four
cents per fully diluted share, for the quarter and $18.3 million, or 29 cents per fully diluted share, for
the fiscal year. Inclusion of acquisition costs and other one-time items results in reported net
losses for the quarter and year of $5.4 million and $10.8 million, respectively.
The Company has met or exceeded both sales and income estimates first announced July 19 and
confirmed on Nov. 13. In both cases, ADIC confirmed that strong growth relative to its storage
networking peers and excellent opportunities for continued growth would lead it to maintain heavy
investments in product development, sales and service channels as well as infrastructure
improvements at the expense of optimizing short-term profits.
"The last several months have brought a dramatic slowdown in the economy, the effects of which
were compounded by the tragic events of September 11 and their aftermath," said Chairman and
Chief Executive Officer Peter van Oppen. "Despite these concerns, we are very pleased to report
annual growth, on both a quarterly and fiscal year basis, resumed sequential growth and
profitability consistent with expectations that were established prior to the terrorist attacks."
"Further," van Oppen said, "current first quarter sales are expected to range between $90 million
and $95 million and are likely to show sequential sales growth over our traditionally strong fourth
quarter."
"We are delighted to report continued widespread acceptance of our Storage Networking Libraries,"
ADIC President and Chief Operating Officer Chuck Stonecipher said. "Major OEM and branded
customers are incorporating our architecture and roadmap including managed connectivity and
SAN services."
He said, "We believe that, as the economy improves, our Storage Networking Libraries and
associated software will represent an outstanding growth opportunity." The Company noted that
more than 40 percent of its 2002 revenues are expected to be associated with Storage Area
Network (SAN) installations or SAN-ready storage solutions.
OEM shipments for the fourth quarter and fiscal year 2001 totaled 43 percent and 42 percent of
total sales, respectively, versus 33 percent and 27 percent for the previous fourth quarter and fiscal
year. During 2001, sales to Dell Computer were $60.1 million and sales to IBM Corporation were
$85.8 million.
As previously announced, pro forma earnings numbers include several adjustments to audited
results eliminating one-time costs that, in the judgment of management, are not reflective of the
Company's ongoing performance. Such adjustments include the elimination of $29.9 million in
combined patent litigation costs, fees and inventory adjustments associated with the acquisition of
Pathlight Technology in May, more than half the net cost of which was offset by post-closing
purchase price adjustments. Fourth quarter and annual pro forma operating earnings also exclude
a previously announced $2.3 million liability recorded to reflect the effect of the deteriorating
economy on anticipated costs to exit a manufacturing and development site which has been
replaced by a larger facility.
Pro forma adjustments to other income total $10.7 million and include a previously announced
$8.05 million reduction in carrying value of investments in certain private technology companies.
The remainder represents a non-cash loss of $2.64 million on covered derivative securities. This
loss will be more than offset by cash gains that will be reflected as related derivative contracts
mature over the next two quarters.
All pro forma results assume a 35 percent tax rate. The reported tax provision reflects tax benefits
associated with one-time items excluded for pro forma purposes. Reported results for the fourth
quarter and fiscal year 2000 have been restated to reflect the acquisition of Pathlight Technology
on a pooling-of-interests basis. Also, prior fourth quarter and fiscal year results include one-time,
pre-tax gains of $6.9 million and $97.3 million, respectively. |
