English is my primary language but for some reason I think the CEO uses that fuzzy math they talk about. The CEO must think that his investors are idiots.
Press Release Source: Maxtor Corporation
Maxtor Raises Guidance for Fourth Quarter Financial Results
Monday December 9, 4:41 pm ET
Company Expects to Post a Pro Forma Profit, Driven by Improved Production Ramp of New Products, Higher Profit Margins and Strong Demand
MILPITAS, Calif., Dec. 9 /PRNewswire-FirstCall/ -- Maxtor Corporation (NYSE: MXO - News) today raised its guidance for the fourth quarter ending December 28, 2002. The company currently expects unit shipments to be between 12.9 and 13.2 million. Revenue is expected to be between $990 million and $1.030 billion. Gross profit margins are anticipated to be between 15% and 16%. The company expects to report a net loss from continuing operations on a GAAP basis of between $(53) and $(43) million. When adjusted for the amortization of intangible assets of approximately $20.6 million, stock compensation of approximately $.6 million and approximately $57 million in severance expense related to the recent reduction in force, the company expects to report pro forma net income for the quarter of between $25 and $35 million, or $0.10 to $0.14 per share.
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"We are very pleased with our outlook for a return to profitability in the fourth quarter," said Mike Cannon, president and CEO. "This improvement is primarily due to Maxtor's success in ramping our new 60/80 GB per platter products, strong demand for both our desktop and server hard disk drives, and a favorable pricing environment. As the industry leader in the difficult 60/80 GB per platter transition, we are enjoying excellent profit margins on these products, and we expect this to continue."
"While we are certainly pleased with our fourth quarter outlook, we are continuing to aggressively reduce expenses to further improve financial results going forward," Mr. Cannon continued. "To that end, we are in the process of eliminating an additional 500 positions in the U.S. workforce. This reduction will have minimal benefit in the fourth quarter but will provide significant expense reduction in the quarters ahead."
Maxtor will announce its fourth quarter 2002 financial results on Tuesday, January 21st after the close of the market. The company will not be holding a conference call related to this announcement. |
