ADPT reports earnings below Wall Street estimates.
Somebody on this thread mentioned ADPT at least once. It's not a major company, or a significant indicator for the drive sector, but:
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Thursday April 30, 4:02 pm Eastern Time
Company Press Release
Adaptec Announces Financial Results for Fiscal 1998
Q4 Revenue Down From Same Quarter of Prior Year
MILPITAS, Calif.--(BUSINESS WIRE)--April 30, 1998--Adaptec, Inc. today announced financial
results for its fourth quarter and 1998 fiscal year which ended March 31, 1998.
Fiscal fourth quarter revenues were $204 million, down 23% from the $265 million reported for the corresponding quarter of the prior year. Net income for the quarter was $23 million, or $0.20 per share.
Revenues for the 1998 fiscal year were $1,007 million, an 8% increase over fiscal 1997 revenues of $934 million. Net income for FY'98 was $173 million, or $1.46 per share, an increase of 61% over fiscal 1997 net income of $108 million and $0.93 per share.
Grant Saviers, Adaptec chairman, president and CEO, said ''This has been a challenging year for Adaptec. Significant changes in the pricing dynamics of the PC and workstation markets and turmoil
in the disk drive market caused third and fourth quarter revenues to fall below our expectations. In response, we reduced our operating expenses during the fourth quarter. We have also recently made
strategic investments and acquisitions that should strengthen our market position as a leading provider of high performance system bandwidth solutions.''
About Adaptec
Adaptec provides bandwidth management technologies for organizations building the global information infrastructure. Its high performance I/O, connectivity, and network products are incorporated into the systems and products of major computer and peripheral manufacturers.
Adaptec, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended Twelve Months Ended
Mar. 31, Mar. 31, Mar. 31, Mar. 31,
1998 1997 1998 1997
(In thousands, except per share data)
Net revenues $203,600 $265,108 $1,007,293 $933,868
Cost of revenues 83,772 107,234 391,100 388,969
------ ------- ------- -------
Gross profit 119,828 157,874 616,193 544,899
------- ------- ------- -------
Operating expenses
Research
and development 42,141 35,191 172,522 128,530
Selling, marketing
and administrative 51,333 48,077 218,839 162,979
Write off of acquired
in-process technology
and other -- 11,499 -- 92,162
------ ------ ------- -------
93,474 94,767 391,361 383,671
Income from operations 26,354 63,107 224,832 161,228
Interest income, net of
interest expense 4,838 3,160 20,497 10,553
----- ----- ------ ------
Income before income
taxes and cumulative
effect of a change in
accounting principle 31,192 66,267 245,329 171,781
Provision for income taxes 7,798 19,441 63,452 64,220
----- ------ ------ ------
Income before cumulative
effect of a change
in accounting principle 23,394 46,826 181,877 107,561
Cumulative effect of a
change in accounting
principle -- -- 9,000 --
-------- -------- ------ -------
Net income $ 23,394 $ 46,826 $172,877 $107,561
========= ========= ======== ========
Net income
per share - diluted $ 0.20 $ 0.39(a) $ 1.46(b)$ 0.93(c)
-------- --------- -------- -------
Weighted average
common shares
assuming dilution 116,558 120,614 118,432 115,596
======= ======= ====== =======
Notes:
(a) Diluted EPS impacted by ($0.09) due to one-time acquisition
charges in fiscal 1997.
(b) Diluted EPS impacted by ($0.08) due to cumulative effect of
change in accounting principle.
(c) Diluted EPS impacted by ($0.78) due to one-time acquisition
charges in fiscal 1997.
Adaptec, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
March 31, 1998 March 31, 1997
(In thousands)
ASSETS
Current assets:
Cash and marketable securities $ 697,382 $ 548,441
Accounts receivable, net 132,526 123,303
Inventories 71,297 53,184
Other current assets 90,765 93,020
------ ------
Total current assets 991,970 817,948
Property and equipment, net 194,798 141,599
Other assets 88,461 83,947
------ ------
$1,275,229 $1,043,494
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt $ 850 $ 3,400
Note payable 17,640 --
Accounts payable 48,047 52,400
Accrued liabilities 73,947 68,519
------ ------
Total current liabilities 140,484 124,319
------- -------
Convertible subordinated notes and
long-term debt, net of current portion 230,000 230,850
------- -------
Stockholders' equity
Common stock 114 112
Additional paid in capital 295,263 251,722
Retained earnings 609,368 436,491
------- -------
Total stockholders' equity 904,745 688,325
------- -------
$1,275,229 $1,043,494
========== ==========
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