This might explain the drop:
Comdisco Comments on Pontikes Trust Stock Sales
ROSEMONT, Ill.--(BUSINESS WIRE)--March 22, 2001--Comdisco Inc, (NYSE:CDO), today noted that Nicholas K. Pontikes, former president and chief executive officer, announced on March 19, 2001, that certain trusts for which the members of the Pontikes family are beneficiaries and/or trustees sold 1 million shares of Comdisco common stock. The family trusts also entered into a trading program complying with Rule 10b5-1 to cover sales of an additional 2.5 million shares of Comdisco stock held by the trusts. The Pontikes family cited the sales as part of an asset diversification plan and expressed that its continued significant investment in Comdisco indicates complete confidence in the company and its leadership.
"Our outlook as stated in our January 31, 2001 conference call remains firm. Our number one goal is to rebuild credibility, earn the confidence of the capital markets, reduce debt and increase equity," said John J. Vosicky, Comdisco's executive vice president and chief financial officer. "We currently have in excess of $350 million of cash on hand. We have paid down $320 million in unsecured senior debt in our fiscal second quarter, and more than $850 million in unsecured senior debt since the beginning of our fiscal year on October 1, 2000."
Safe Harbor:
The foregoing contains forward-looking statements regarding Comdisco, which are based on current expectations and assumptions, and which involve risks and uncertainties that could cause results to differ. The company intends that such forward-looking statements be subject to the safe harbor created by Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. The following lists some of the factors, which could cause results to differ from expectations.
The company's liquidity depends, in part, on its access to capital markets, specifically medium-term and senior notes, and commercial paper, and on its lines of credit. If the company were not able to refinance its indebtedness or obtain new financing under these circumstances, the company would have to consider other options, including: sales of some assets; sales of equity; negotiations with lenders to restructure applicable indebtedness; or other options available to the company under applicable law. Further, the Company's cash flow from operating activities is dependent on a number of variables, including, but not limited to, the ability of the Company to implement its strategic plan and respond to external market conditions, the ability of the Company to dispose of the securities held by Comdisco Ventures, timely payment by its customers, global economic conditions and controlling operating costs and expenses.
For a detailed discussion of these and additional factors that would cause results to differ please refer to the company's filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended 9/30/00 and its latest Quarterly Report on Form 10-Q for the Quarter ended 12/31/00 and the company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
About Comdisco
Comdisco (www.comdisco.com) provides global technology services to help its customers maximize technology functionality, predictability and availability, while freeing them from the complexity of managing their technology. The Rosemont, (IL) company offers a complete suite of information technology services including business continuity, managed web hosting, storage, and IT Control and Predictability Solutions(SM). Comdisco offers equipment solutions to key vertical industries, including semiconductor manufacturing and electronic assembly, healthcare, telecommunications, pharmaceutical, biotechnology and manufacturing. Through its Ventures division, Comdisco provides equipment leasing and other financing and services to venture capital backed companies. The company's revenue for the 12 months ended December 31, 2000 was $3.9 billion.
CONTACT:
Comdisco
Media Relations
Mary Moster, 847/518-5147
mcmoster@comdisco.com
or
Comdisco
Investor Relations
James J. Hyland, 847/518-5051
jjhyland@comdisco.com
KEYWORD: ILLINOIS
BW2013 MAR 22,2001
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