Jun 03, 1999 14:19 PACIFIC 17:19 EASTERN
(QNTM) Quantum Revenue and Earnings for First Fiscal
Quarter to be Lower Than Anticipated
Business Editors/High Tech Writers
MILPITAS, Calif.--(BUSINESS WIRE)--June 3, 1999--Quantum
Corporation (Nasdaq/NMS:QNTM) today stated that its first quarter
earnings are currently expected to be in the range of $.05 to $.15 for
the quarter ending June 27, 1999, on sequentially lower revenues. The expected decline in revenue and earnings is attributed to aggressive pricing in the desktop hard disk drive market.
According to Michael Brown, Quantum's Chairman and Chief
Executive Officer, the desktop hard disk drive market is currently experiencing higher than expected price erosion. "As we entered this
quarter, we expected desktop units to be relatively flat, with revenue
down sequentially due to continued pricing pressures. However, pricing
pressures have been more severe than expected, with the sequential
rate of price decline roughly double that of the prior two quarters,"
said Brown. This will result in lower than anticipated revenue and
earnings for the company for the June quarter.
Commenting on overall demand for the company's disk drives, Brown stated that demand for the company's desktop and high-end products continues to be healthy. "We are enthused about the status of our
qualifications for our industry leading Fireball(TM) CX
(6.8GB/platter) drives, which we began shipping this quarter," said
Brown. "We are also pleased with the customer acceptance of our new
high-end hard drives, Atlas(TM) IV and Atlas 10K. With these new
products in both the desktop and high-end, we are regaining time to
market leadership in the hard drive industry."
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
The foregoing statements regarding the company's revenue and
earnings for the quarter ending June 27, 1999 and customer acceptance
and successful product qualification of the Fireball CX, Atlas IV and
Atlas 10K are forward looking statements and actual results may vary
based on, among other factors, (i) the continued level of pricing
pressure in the desktop hard disk drive market, (ii) actual results
for the quarter ending June 27, 1999, (iii) a failure to complete
shipments of the company's hard disk drive products during the final
weeks of the quarter ended June 27, 1999, (iv) continued customer
acceptance of the Fireball CX, Atlas IV and Atlas 10K, and (v) the
risk factors set forth in the company's registration statement on Form
S-4 filed on April 29, 1999 and periodic reports filed with the
Securities and Exchange Commission.
Quantum Corporation will be holding a conference call for
financial analysts at 2:45 PM, PDT today. Press and industry analysts
are welcome to participate in a listen-only mode.
The dial in number is 1-800-491-3127
Quantum and the Quantum logo are trademarks of Quantum
Corporation, registered in the United States and other countries.
Quantum Fireball and Atlas are trademarks of Quantum Corporation.
--30--azs/sf
CONTACT: Quantum Corporation
Renee Budig, 408/894-5563 (IR)
renee.budig@quantum.com
Holly Campbell, 408/894-5058 (PR)
holly.campbell@quantum.
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