Adaptec: Revenues in Asia to grow
By Reuters
January 19, 1998, 5:10 a.m. PT
SINGAPORE--Adaptec (ADPT) said today that it expected revenues in Asia outside Japan and South Korea to grow in strong double-digits for its year ending March 1998.
"We're looking at revenues of about $200 million for fiscal 1998--kind of 30 to 40 percent growth," Chan Chee Keong, Adaptec's regional sales manager for Asia Pacific, told a news conference.
This covers sales from its products used in systems and peripherals in Asia outside Japan and South Korea, he said.
Adaptec supplies critical components for linking high speed devices in computers and peripherals like disk drives.
Chan was responding to a query on the company's Asian outlook after a profits warning given by Adaptec on its third quarter results.
Adaptec said earlier in January that its profits for its fiscal third quarter ended in December would be well below Wall Street estimates.
It expected a fiscal third quarter operating income of about 35 cents to 40 cents a share, or 21 cents to 23 cents after one-time charges and accounting changes.
Third quarter sales would be in the range of $250 million to $255 million, flat from a year-ago quarter when revenues were $251.7 million and net income after charges was $41.6 million, or 36 cents a share.
Adaptec today said that the profits warning was referring more to a slowdown in the high-end desktop market in the United States and weakness in the Japanese market.
It said the Asian financial crisis had limited impact on the company as it had little business in countries like Indonesia and Thailand.
Most of its distribution was in Australia, Taiwan, Hong Kong, China, and Singapore, it said.
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