Mark:...Just came across my desk:Storage Dimensions Previews Third Quarter Results
BusinessWire, Wednesday, September 24, 1997 at 16:27
MILPITAS, Calif.--(BUSINESS WIRE)--Sept. 24, 1997--Storage
Dimensions, Inc. (NASDAQ:STDM), the leading independent vendor of
high-availability RAID storage systems for the PC-LAN market, today
announced anticipated results for the third quarter ending Sept. 30,
1997.
Storage Dimensions expects to post net sales for the third
quarter of approximately $16 to $17 million and a net loss of
approximately $.10 to $.14 per share. These results compare to
second quarter 1997 net sales of $16.6 million and a net loss of $.16
per share. Storage Dimensions expects to announce final third
quarter results on Oct. 20.
As previously reported, Storage Dimensions' second quarter results
were unfavorably impacted by five primary factors: softness in the
PC-LAN market; price erosion on disk drive components; expenses
related to the RAIDPro(TM) product introduction; a product return taken
from a single customer; and below plan staffing of the Company's
end-user sales force.
"As we near the completion of the third quarter, I am disappointed
in the Company's sequential quarterly sales results," said David Eeg,
president and CEO of Storage Dimensions. "While four of the five
primary factors that adversely impacted the Company last quarter were
addressed and have not carried over into the current quarter, the
fifth factor, sales force productivity, is continuing to negatively
affect our operating results. Approximately 50% of our direct sales
force has been with the Company for less than six months. Given the
large number of new recruits, we believe they will require one to two
additional quarters of training before they meet or exceed quota. We
are encouraged by the continued performance of our veteran sales
staff, and believe that as our newer sales personnel progress up the
learning curve, overall sales productivity and Company revenues will
improve.
"We are pleased that expense controls instituted at the end of the
second quarter should allow us to report improved operating margins
this quarter," continued Eeg. "We also anticipate a strengthening in
our balance sheet in the areas of inventory, accounts receivable, and
cash."
Eeg added, "The Company remains well positioned for growth in the
PC-LAN market as Microsoft Windows NT Server becomes widely adopted.
Interest in RAIDPro remains strong, based on the number of
significant opportunities that the sales team has identified."
Company Profile
Founded in 1985, Storage Dimensions designs, manufactures,
markets, and supports a broad family of disk and tape storage systems
designed to satisfy the high-performance, fault-tolerance, and
high-availability requirements of the PC-LAN market. The Company,
which focuses on reducing the life-cycle cost of ownership of network
storage, also develops and supports selected products for the Unix
market. Storage Dimensions products are sold through its own field
sales force in combination with multi-tiered distribution channels.
For more information, contact Storage Dimensions at 1656 McCarthy
Boulevard, Milpitas, Calif. 95035, 408/954-0710, or visit
storagedimensions.com .
This press release contains forward-looking statements. These
forward-looking statements include, but are not limited to, financial
projections for the third quarter, statements regarding expectations
for the PC-LAN storage market, and statements regarding expectations
that revenues will improve as new sales personnel gain experience.
Actual results may differ materially due to factors including, but
not limited to, fluctuating demand for PC-LAN server products in
general and storage systems in particular; the Company's ability to
recruit, train, and retain qualified sales and other personnel; the
level of market acceptance achieved for the Company's products; and
the level of market demand for NT-based PC-LAN products. These and
other risks are described in more detail in the Company's filings made
with the Securities and Exchange Commission which may be accessed on
the World Wide Web at sec.gov.
NOTE TO EDITORS: For more information regarding Storage
Dimensions, Inc. via fax at no cost, dial 1-800/PRO-INFO, ticker
symbol STDM.
Sparky |
