Did you expect less from our management?....
Mylex's First Quarter 1999 to be Below Expectations
BusinessWire, Thursday, March 18, 1999 at 09:54
FREMONT, Calif.--(BUSINESS WIRE)--March 18, 1999--Mylex Corporation (NASDAQ:MYLX), today announced that somewhat weaker than anticipated sales demand through the Company's higher margin distribution channels worldwide, combined with an unfavorable product mix for quarterly sales already booked, is expected to cause net income to fall below analyst expectations for the first quarter of 1999.
When Mylex announced fourth quarter earnings in January, the Company's expectations were that revenue in the first quarter of 1999 would be approximately flat with fourth quarter revenue of $39 million and that the Company would be slightly profitable. Although the quarter has not yet ended, and the Company may be close to its revenue target, the Company presently believes that the mix of business booked at this time will adversely impact gross margins and, as a result, negatively impact previously anticipated profitability.
Specifically, the Company's newly released low cost RAID solutions carry a lower gross margin than the Company's other products and these new RAID solutions are currently expected to make up a larger percent of quarterly sales than had been expected. While the Company does not yet have sufficient information to estimate the results of the first quarter, and, as a result, no assurances can be given, management presently believes that earnings per share could range from breakeven to a slight loss.
The Company expects to release final results for the first quarter on April 22, 1999.
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