SimpleTech Revises March Quarter Guidance Upwards
SANTA ANA, Calif.--(BUSINESS WIRE)--April 2, 2002--SimpleTech Inc. (Nasdaq:STEC - news) today revised its March quarter FY02 guidance. There will be no conference call accompanying this announcement. The new guidance is as follows:
Revenues are expected to be up approximately 30% sequentially primarily due to the continued firming of DRAM prices during the quarter. The prior guidance given on January 31, 2002, was for 10 to 15% sequential revenue growth. DRAM contract and spot prices have approximately quadrupled since November 2000 due in part to consolidation in the DRAM industry.
Earnings per share (EPS) is expected to be approximately four to five cents, excluding acquisition and on-going expenses related to the Company's January 2002 acquisition of the assets of Irvine Networks. The prior EPS guidance was for three to four cents, excluding the acquisition and on-going expenses. On-going expenses related to acquisition are expected to be approximately two to three cents per diluted share in the first quarter. Non-recurring charges related to the acquisition purchase cost are pending the completion of an independent third-party valuation.
Both our Commercial and Industrial Divisions are expected to show sequential revenue growth.
The Company believes that memory and storage demand may increase within the upcoming four quarters as corporations and government entities upgrade outdated equipment purchased during 1999 to ensure compatibility with Y2K issues.
SimpleTech, Inc. is a technology solutions provider offering products based on DRAM, SRAM and Flash memory technologies. Headquartered in Santa Ana, Calif., the company is a leader in the design, development, manufacturing and marketing of custom and standard memory solutions. For information, visit the Company's web site at www.simpletech.com.
This release may contain forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted. Important factors which could cause actual results to differ materially from those expressed or implied in the forward-looking statements are detailed under ``Risk Factors'' in filings with the Securities and Exchange Commission made from time to time by SimpleTech, including its annual reports on Form 10-K, its quarterly reports on Form 10-Q, and its current reports on Form 8-K. Other factors that could cause our actual results to differ materially from those expressed or implied in the forward-looking statements include the risks that future component pricing for DRAM and Flash and associated SimpleTech product prices are subject to significant fluctuations, we may not be successful in generating new or continued sales with current and past customers, and a continued downturn in the global economy, including the semiconductor industry, may force our customers to delay or cancel purchasing decisions affecting our products. SimpleTech undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances occurring after the date hereof. |
