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Technology Stocks : Advanced Digital Information Corp. (ADIC) -- Ignore unavailable to you. Want to Upgrade?

To: Z Analyzer who wrote (1955)	5/18/2000 9:36:00 AM
From: H James Morris	Respond to of 2283

Good question. All this market cares about is revenue growth...profits mean nothing. Amazon.com is a great example. >Redmond, Washington, May 17 (Bloomberg) -- Advanced Digital Information Corp. fell as much as 25 percent after the maker of computer storage and archival systems reported ``sluggish'' sales growth in Europe and lower sales of its largest libraries. The shares of the Redmond, Washington-based company fell 2 9/16 to 14 7/8 in midafternoon trading of 5.8 million, more than five times the three-month daily average. Earlier, the shares touched 13. They've lost more than 40 percent of their value since Jan. 1 and are the eighth-biggest percentage loser on the Nasdaq Stock Market today. Revenue for the fiscal second quarter ended April 30 rose 20 percent to $64.9 million but weakness in the euro, which makes imported products like Advanced Digital's more expensive, hurt sales in Europe. The reports of slowing growth spooked some investors, one analyst said. ``Once you announce slowing growth, people get out,'' said William Lewis, an analyst at Chase H&Q in San Francisco, who rates Advanced Digital shares a ``buy.'' ``It was a transitional quarter for the company. We don't expect their numbers to go through the roof in the third quarter either but the fourth quarter and beyond looks good.'' Advanced Digital's second-quarter revenue was about $2 million less than Lewis was expecting, he said. Lewis expects combined revenue of $150 million for the third and fourth quarters but said he may revise that number. May/17/2000 14:29 ET

To: Z Analyzer who wrote (1955)	5/18/2000 9:53:00 AM
From: Z Analyzer	Read Replies (1) \| Respond to of 2283

Does anyone have a conference call replay number? Thanks.

To: Z Analyzer who wrote (1955)	5/18/2000 12:46:00 PM
From: Jim Oravetz	Respond to of 2283

....Chase H&Q analyst Lewis said that sales of some of Advanced Digital's large storage library products, aren't growing, particularly in Europe, and are actually declining. However, he expects them to rebound "to some degree." At the same time, the company is ramping up new products and has forged a new relationship with International Business Machines Corp. (IBM), he said. "It's not an issue that they are losing share, it's really just that they are in a transition period and going forward, we expect accelerated growth," he said. The revenue for the second quarter was below what the company historically posts, added Lewis. Advanced Digital is the premier player in the tape storage library business and the shortfall in revenue, which is pushing the stock lower, was in the large library business, primarily in Europe, said Jeffrey Van Sinderen, an analyst at B. Riley & Co. The company's core business, smaller library storage, was up about 50%, he added....snip... Source: WSJI Jim