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Technology Stocks : Storage Technology- STK -- Ignore unavailable to you. Want to Upgrade?

To: Charles Broderick who wrote (539)	10/13/1999 9:09:00 AM
From: bob gauthier	Read Replies (1) \| Respond to of 560

Wednesday October 13, 8:23 am Eastern Time Company Press Release StorageTek Expects Third-Quarter Earnings Below Analysts' Expectations LOUISVILLE, Colo.--(BUSINESS WIRE)--October 13, 1999--StorageTek(TM) (Storage Technology Corp.) (NYSE:STK - news) today said that based on its preliminary assessment of its third-quarter 1999 performance, it expects total revenue and net earnings excluding one-time charges will fall significantly below the range of analysts' published estimates. For the third quarter ended September 24, 1999, the company expects net earnings excluding one-time charges will be below $.10 per share. According to First Call, the range of estimates of security analysts is $.30 to $.33 per share. ''Our preliminary evaluation indicates that while international revenues and profits and corporate operating expenses appear close to expectations, North American revenues and profits appear to be significantly below expectations,'' said David E. Weiss, StorageTek chairman, president and chief executive officer. ''We believe a portion of this weakness is due to some customers delaying testing and purchasing decisions in anticipation of Y2K, primarily with our new products.'' ''We expect total revenue to be approximately flat with the third quarter last year, with growth in both the storage services and storage management software segments offset by lower product revenue,'' said Weiss. ''We believe third- quarter client-server tape sales grew faster than the industry, while disk and mainframe tape sales declined over the third quarter last year. Revenue growth excluding sales to IBM is anticipated to be in the mid-teens for the third quarter.'' The company said it plans to report final results on October 28 and will provide additional details on the third-quarter results and business outlook at that time. The assumptions, expectations and forecasts contained herein regarding StorageTek's future plans, financial results and performance may constitute ''forward looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that could cause actual results to differ materially. Some of these risks and uncertainties include, without limitation, the timely introduction, manufacture and market acceptance of products; successfully containing operating expense levels while increasing revenue; managing aggressive competition and pricing pressures on the Company's products and services; developing new distribution channels for the Company's products; the impact of year 2000 preparations on the company's customers and suppliers and purchasing patterns; and other risks that are discussed in StorageTek's reports on Forms 10-K, 10-Q and 8-K that are filed with the Securities and Exchange Commission (SEC) and which are available on the Internet. About StorageTek StorageTek is the preeminent provider of network storage. The company's strategy is to provide ''Open, Intelligent and Integrated''(TM) solutions that combine storage products, storage management software and storage services. StorageTek solutions help customers collect, move, store, share and protect all types of digital content on platforms ranging from laptops to enterprise servers. The company, with headquarters in Louisville, Colo., reported revenue of $2.3 billion in 1998. Information on StorageTek is available on the World Wide Web at www.storagetek.com or phone 1-800-786-7835.