Torben, these are my notes from the cc:
As everyone knows, there has been an industry-wide downturn in info. technology, with increasing pc inventories.
ADPT host and PTS businesses both down, with increased inventories.
Non-scsi business at $100 million (per year?)
software, raid, storage, networking sales all growing.
upside: ultra2scsi adapter demand over the june quarter.
udma has narrowed the performance gap with scsi, but will not narrow the gap further.
64 bit pci will increase demand for ultra 2 scsi this quarter and next and beyond.
disc drive business down from $60 million to 45 million sequentially
host adapter business down from $194 million to $158 million sequentially.
Poor results due to rebate program to disc drive makers, decreased shipping to OEM customers (to control inventories).
Scsi revenue up 10% year to year
unit volumes up 30% year to year.
boards up 15% year to year
asics up 50% year to year
Cash down $30 million due to $8 million stock buy back and Symbios purchase.
Gross margins down to 59% from 62%
reduced head count will help in June quarter
Re: Symbios, Federal Trade Commission asked for more information, then 20 days to review, hope for close the deal late June.
Issue bonds to repay bank loan for acquisition
Plan
1)will control operating expenses flat to down
2)invest in high leverage programs, close others
3)acquisitions to solidify position in high end of market
new opportunities in Symbios and Ridge technologies
the "New Adaptec"
three divisions:
1)host interface solutions
2) storage systems division
-raid controolers
-fibre channel complete solutions (SAN)
3)Semiconductors & peripheral equipment
-controllers,DSPS, read channel
Doing well:
CD recordable $30 million rate
networking
portables
Outlook:
Next 2 quarters continue poor industry environment. expect flat overall revenues. Begin recovery in October quarter. Shoot for substantial improvement October (3rd) and 4th (January) quarters.
Questions:
Will subsystems compete with your customers?
A: No, they asked for the subsystems
operation savings $20 million/year offset increased expenses from acquisitions.
Morale?
Working on it. turnover at "valley average", 1 or 2% above 6 months ago.
Lost ground in the single user application vs. IDE
IDE prices were in free fall, and cost half as much.
high performance server market...SCSI is solid
Revenue overall flat June and September quarters: Disc drive revenues down, offset by increased host adapter sales.(ultra 2 scsi up this quarter)
our sell through is now stable
satellite business is not to the desktop, but for data distribution to commercial customers. Three phases:
1) data broadcast phase
2) limited 2-way networking
3) full 2-way networking to the satellite in 2 to 3 years.
Fibre channel focus is software
Will work with other vendors for hubs and routers.
ultra udma66 not a threat to ultra scsi
gross margins will be stable to off a little
dissappointed in SCSI penetration in workstations (UDMA impact)
bought back 400,000 shares for $8 million, then stopped when Symbios became available for purchase.
The end. I hope this is accurate, and welcome corrections :) wj |
