Great margins....Stock going forward should perform well.
Thursday October 10 8:00 AM EDT
Exabyte Announces 1996 Third Quarter Results
Gross Margins and Earnings at a Six-Quarter High
BOULDER, Colo., Oct. 10 /PRNewswire/ -- Exabyte Corp today reported revenue for the quarter
ended Sept. 28, 1996, of $92,741,000, versus revenue of $84,100,000 for the comparable period
in the previous year. Net income for the third quarter was $3,703,000 or $0.17 per share, versus a
net loss of $24,865,000 or $1.13 per share for the same period last year. Included in last year's loss
was $1.02 per share of inventory write-downs, reserves to cover certain obligations to vendors and
goodwill write-offs.
Commenting on third quarter results, Peter D. Behrendt, chairman, president and chief executive
officer, stated, "Our third quarter revenues increased by 10.3% from the third quarter of 1995 and
by 2.5% from the second quarter of this year. Sales of our new flagship 8mm Mammoth tape drive
more than tripled from the level of the second quarter and our value-line 8mm drive, the EXB-8700,
grew by more than 40%. Offsetting these substantial increases was a decline in sales of the
EXB-8505XL as customers began the transition to these newer products. Our library and media
businesses registered modest sequential increases and minicartridge unit shipments from our Eagle
division more than tripled, now representing approximately 8% of our revenue this quarter.
"We are pleased that several significant OEMs, including Apple, NCR, Tektronix and Sun
Microsystems, have recently announced their plans to ship our 40-gigabyte Mammoth drive as part
of their system offerings. Sun Microsystems, traditionally our second largest customer, recently
honored Exabyte for the fourth year in a row with a supplier award for excellence in both service
and products. This year we were recognized in an even greater way with Sun's Outstanding Vendor
Award, which is only given to the top 10 of their 600 vendors," stated Behrendt.
William L. Marriner, Exabyte's chief financial officer, stated, "Our gross margin grew to 28.7% from
last quarter's 27.4%, making this the best gross margin we've reported in six quarters. Contributing
to this improvement were strong sales through the higher margin distribution channel, continued
strength of the dollar against the yen and lower warranty costs."
Headquartered in Boulder, Exabyte designs, manufactures and markets a full range of tape storage
products: 8mm and minicartridge tape drives, 8mm and 4mm tape libraries, and recording media.
Exabyte is the world's largest independent manufacturer focused solely on tape storage products
which it ships to original equipment manufacturers, value-added resellers and distributors.
For Financial Information, including 10-Ks, 10-Qs and press releases, contact: (201) 946-0091.
Internet address: exabyte.com.
This release, as it relates to product introductions and other Company matters, contains
forward-looking statements which are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking
statements involve risks and uncertainties including, without limitation, risks related to development
of technology and manufacturing capabilities, market acceptance of and demand for, the Company's
products, impact of competitive products and pricing, dependence on third-party suppliers, and
intellectual property rights. Investors are directed to the Risk Factors section and other information
contained in the Company's filings with the Securities and Exchange Commission, including the
company's 1995 Form 10-K, copies of which are available from the Company without charge, for a
more complete description of the risks and uncertainties relating to the material in this release as well
as to the other aspects of the Company's business.
EXABYTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Nine Months Ended
Sept. 28, Sept. 30, Sept. 28, Sept. 30,
1996 1995 1996 1995
Net sales $92,741 $84,100 $277,023 $277,277
Cost of sales 66,079 99,772 199,998 239,945
Gross profit 26,662 (15,672) 77,025 37,332
Operating expenses:
Selling, general and
administrative 11,921 14,725 34,063 37,336
Research and development 9,248 10,007 27,420 28,101
Income (loss) from operations 5,493 (40,404) 15,542 (28,105)
Other income (expense), net 293 (93) 1,126 1,491
Income (loss) before income taxes5,786 (40,497) 16,668 (26,614)
Provision (benefit) for
income taxes 2,083 (15,632) 6,000 (10,912)
Net income (loss) $3,703 ($24,865) $10,668 ($15,702)
Net income (loss) per share $0.17 ($1.13) $0.48 ($0.71)
Common and common equivalent shares
used in the calculation of
net income (loss) per share 22,302 22,055 22,288 22,038
EXABYTE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 28, December 30,
1996 1995
ASSETS
Current assets:
Cash $67,129 $68,937
Accounts receivable, net 64,471 56,785
Inventories 56,493 44,169
Other current assets 19,802 27,041
Total current assets 207,895 196,932
Property and equipment, net 43,474 42,972
Other assets 12,250 10,432
$263,619 $250,336
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $26,261 $21,840
Accruals and other liabilities 32,726 37,949
Total current liabilities 58,987 59,789
Long-term liabilities 3,586 4,181
Stockholders' equity:
Common stock 22 22
Capital in excess of par value 63,105 59,093
Retained earnings 137,919 127,251
Total stockholders' equity 201,046 186,366
$263,619 $250,336
SOURCE Exabyte Corporation |
