Business Editors
MILPITAS, Calif.--(BUSINESS WIRE)--April 27, 1999--Quantum
Corporation (NMS: QNTM) today reported sales of $1.31 billion for the
fiscal 1999 fourth quarter ended March 31, 1999, up from sales of
$1.29 billion in the comparable period last year. Net income for the
quarter was $56.7 million, or $.33 per share, diluted, compared with
$2.7 million or $.02 per share, diluted, in the fourth quarter of
fiscal 1998.
Revenue for fiscal 1999 was $4.9 billion compared with $5.8
billion for fiscal 1998, declining as a result of aggressive
industry-wide price declines in the hard disk drive market throughout
much of the company's fiscal year. For the year, net income, excluding
special charges of $190 million, was $127.8 million on a fully taxed
basis, or $.76 per share, diluted, compared with net income, excluding
special charges of $103 million, of $250.3 million, or $1.55 per
share, diluted, in fiscal 1998. The special charges in fiscal 1999
included $101 million associated with the dissolution of the company's
recording heads joint venture, and $89 million to write off in-process
research and development associated with Quantum's acquisition of ATL
Products Inc. Including those charges the company had a net loss of
$29.5 million, or $.18 per share, diluted, for fiscal 1999. The
special charges in fiscal 1998 consisted of inventory write-downs and
adjustments related to product transitions in the company's high-end
hard disk drive business.
"Once again we saw clearly the value of our diversified business
model, as we continued to see improvement in our hard drive business
and as our DLTtapeTM and storage systems business continued to set
records in both revenue and units shipped," said Michael Brown,
Quantum's Chairman and Chief Executive Officer.
Quantum shipped 7.1 million hard disk drive units during the
quarter, of which 6.7 million were desktop units, an increase of
approximately 200,000 units sequentially. High-end disk drive
shipments for the quarter were a record 427,000 units, a 10 percent
increase from the prior quarter. "We were pleased with our
improvements in the HDD business during the quarter and with our
overall market position and competitiveness," said Brown. "Our desktop
business was profitable for the quarter and we continued to strengthen
our number 1 position in this market. We were also pleased with the
increased competitiveness of our high-end drive business. In addition
to our industry-leading quality, we led the industry in asset turns,
and began shipping our new generations of high-end drive families,
Atlas IV and Atlas 10K. Although we shipped a record number of
high-end drives during the quarter, this business continued to incur
losses as a result of continuing pricing pressures on these products."
Growth in revenues and units for DLTtape drives and media
reflected the continued, broad acceptance of DLTtape as the industry
standard for storage backup in the mid-range server market. "During
the March quarter, we shipped the one-millionth DLTtape drive and 30
millionth DLTtape cartridge," said Brown. "Our installed base of
DLTtape drives increased by 70 percent this year and revenues of the
total DLTtape market, consisting of both Quantum and our licensed
media partners, grew by 25 percent." The ATL tape automation business
also achieved record revenues and unit shipments for its tape library
and autoloader products. Non-hard drive revenue for the quarter
accounted for 30 percent of total revenues, up from 28 percent in the
third quarter and 20 percent in the fourth quarter of fiscal 1998.
Brown also commented on the strength of the company's balance
sheet in the March quarter. "This was Quantum's 10th consecutive
quarter of positive cash flow from operations," said Brown. "Given our
continued ability to consistently generate positive cash from
operations and our record cash position, we are pleased with the
overall strength in our balance sheet and our asset management
capabilities." The company generated $108 million in cash from
operations during the March quarter and a total of $464 million for
the fiscal year. Cash and investments increased $89 million to a
record $797 million.
About Quantum
Founded in 1980, Quantum Corporation (www.quantum.com) is a
diversified mass storage company committed to achieving customer
satisfaction through high quality and reliability. Quantum is the
highest volume global supplier of hard disk drives for personal
computers, a leading supplier of high capacity hard drives and the
worldwide revenue leader among all classes of tape drives. Quantum
sells a broad range of storage products to OEM and distribution
customers worldwide. Quantum's sales for the fiscal year ending March
1999 were $4.9 billion.
Quantum Corp., 500 McCarthy Blvd., Milpitas, Calif. 95035,
www.quantum.com, 408 894-4000
Quantum and the Quantum logo are trademarks of Quantum
Corporation, registered in the United States and other countries.
DLTtape is a trademark of Quantum Corporation.
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QUANTUM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
THREE MONTHS ENDED TWELVE MONTHS ENDED
March 31, March 31, March 31, March 31,
1999 1998 1999 1998
Sales $1,308,741 $1,285,719 $4,902,056 $5,805,235
Cost of sales 1,034,754 1,119,887 4,030,718 4,929,714
Gross profit 273,987 165,832 871,338 875,521
Expenses:
Research and
development 98,364 84,944 353,223 321,741
Sales and
marketing 56,261 40,125 191,126 169,031
General and
administrative 30,177 14,250 93,750 89,364
Purchased
in-process
research and
development -- -- 89,000 --
Total operating
expenses 184,802 139,319 727,099 580,136
Income from
operations 89,185 26,513 144,239 295,385
Interest and
other (income)
expense, net 4,497 (966) 2,374 (1,490)
Loss from
investee -- 23,838 142,050 66,060
Income (loss)
before income
taxes 84,688 3,641 (185) 230,815
Income tax
provision 27,947 949 29,350 60,014
Net income
(loss) $ 56,741 $ 2,692 $ (29,535) $ 170,801
Net income
(loss) per share:
Basic $ 0.34 $ 0.02 $ (0.18) $ 1.25
Diluted $ 0.33 $ 0.02 $ (0.18) $ 1.07
Weighted average
common and common
equivalent shares:
Basic 166,619 144,620 160,670 136,407
Diluted 173,787 152,342 160,670 166,016
QUANTUM CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, March 31,
1999 1998
Assets
Current Assets:
Cash and investments $ 796,794 $ 713,723
Accounts receivable, net
of allowance for
doubtful accounts
of $12,130 and $12,928 646,557 737,928
Inventories 271,986 315,035
Deferred income taxes 107,701 133,981
Other current assets 104,835 124,670
Total current assets 1,927,873 2,025,337
Property and equipment, net 271,928 285,159
Intangibles, net 225,567 24,490
Other assets 58,228 103,425
$2,483,596 $2,438,411
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 406,369 $ 446,243
Accrued warranty 76,905 74,017
Other accrued liabilities 197,707 179,041
Current portion of long-term debt 1,024 935
Total current liabilities 682,005 700,236
Deferred income taxes 67,340 38,668
Convertible subordinated debt 287,500 287,500
Long-term debt 56,961 39,985
Stockholders' equity 1,389,790 1,372,022
$2,483,596 $2,438,411
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--30--lmm/sf*
CONTACT: Quantum Corporation
Renee Budig, 408/894-5563 (Investor Relations)
renee.budig@quantum.com
or
Holly Campbell, 408/894-5058 (Public Relations)
holly.campbell@quantum.com |
