McDATA Revises First-Quarter Revenue and EPS Guidance
BROOMFIELD, Colo., April 4 /PRNewswire-FirstCall/ --
McDATA(R) Corporation (NASDAQ:MCDTA, MCDT), 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."
McDATA will hold a brief conference call today, April 4, 2002, at
5:00 p.m. ET (4 p.m. CT, 3 p.m. MT, 2 p.m. PT). To participate, please dial
(706) 679-8352 at least five minutes before the conference call start time.
A replay will be available two hours after the completion of the
conference call through April 11. To access the replay, please dial
(706) 645-9291, access code 3757533. |
