And here is how MCDT did...
McDATA Reports Record Revenues; Net Income Surges 507 Percent Over Fourth Quarter 1999
BROOMFIELD, Colo., Jan. 24 /PRNewswire/ -- McDATA Corporation (Nasdaq: MCDT - news), the leader in open storage network solutions, reported both record revenues and net income for its fourth quarter ending Dec. 31, 2000, citing increased demand for its family of enterprise-to-edge products.
Revenue for the fourth quarter of 2000 totaled $78.3 million -- a 104 percent increase over fourth quarter 1999 and a 17 percent increase over third quarter 2000. Specifically, revenue from products reached $71.0 million, a 111 percent increase over the same period in 1999 and an 18 percent increase over third quarter 2000. Revenue from software and professional services totaled $2.8 million, increasing 102 percent over fourth quarter 1999.
Proforma net income for the fourth quarter 2000, excluding non-cash charges related to stock options, was at $14.3 million. This is a 325 percent improvement over fourth quarter 1999 and a 32 percent increase over third quarter 2000 proforma results. On a diluted basis, proforma earnings per share were $0.12 in fourth quarter 2000, a 300 percent increase over the fourth quarter of 1999 and a 20 percent increase sequentially.
Proforma gross margins were 51.9 percent during the fourth quarter, a 750 basis point improvement over the fourth quarter 1999 and a 230 basis point decrease from the third quarter 2000 proforma results.
Reported net income also reached a record high for fourth quarter 2000 with results totaling $12.3 million, or $0.10 per share, on a diluted basis. This compares with $2.0 million, or $0.02 per share, for the same period in 1999. Overall McDATA's balance sheet remained solid with cash and marketable securities totaling $388 million at year-end.
``With our solid results in the fourth quarter of 2000, McDATA is well-positioned to capitalize on the expected, rapid growth of the market,'' said Jack McDonnell, CEO and president of McDATA. ``We'll keep this momentum in 2001 by continuing to expand our family of products, developing additional customer-focused solutions and expanding our distribution channel, all supported by an aggressive new marketing campaign.''
With the release of the ES-3016 Fabric Switch in the fourth quarter of 2000, McDATA became the only storage area network vendor to provide a complete family of enterprise-to-edge product solutions. McDATA's open storage networking solutions delivers on the promise of an enterprise-to-edge family of products that allows customers to scale up or down in size and the capability to solve their storage needs, while allowing McDATA to compete at every segment in the switch market. Other highlights from the last three months of 2000 include:
A partnership to use Emulex's SBus and PCI Host Bust Adapters to add fibre channel connectivity and provide unparalleled levels of performance using leading operating systems such as Solaris and Windows 2000.
Partnership agreements with BMC Software and Veritas, both key to improving network management solutions for common customers.
Expanded partnerships into Asia Pacific to include systems integrators Kanematsu Electronics Ltd. and Netmarks Inc.
An agreement with StorageTek(TM) to offer customers highly available, SAN-based tape consolidation solutions that have been tested to ensure ease-of-management and implementation.
A reseller agreement to allow edge or small computer system interface (SCSI) to participate in fibre-channel SANs using Chaparral's FS1310 Router.
``Investors, customers and partners can see from our market activities, proven results with products and extensive partnerships how McDATA is building its foundation for continued success,'' said McDonnell. ``We have developed the products, services, people and expertise to solve complex SAN solutions for not only the director-class market, but including any customer applications from enterprise-to-edge. I am very confident in McDATA's ability to extend our leadership in open storage networking solutions well into the future.''
About McDATA (www.mcdata.com)
McDATA (Nasdaq: MCDT - news) is the leader in open storage networking solutions and provides highly available, scalable and centrally managed storage area networks (SANs) that address enterprise-wide storage problems. McDATA's enterprise-to-edge SAN solutions improve the reliability and availability of data to simplify SAN management and reduce the total cost of ownership. McDATA extensively pre-tests its solutions to provide IT organizations with the comprehensive tools, methodologies and support essential to robust SAN implementation. McDATA distributes its products through its OEMs, network of resellers and Elite Solution Partners. McDATA and the McDATA logo are registered trademarks of McDATA Corporation.
Forward-Looking Statements
This press release contains statements about expected future events that are forward-looking and subject to risks and uncertainties. For these statements, we claim the safe harbor for ``forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Factors that could cause actual results to differ and vary materially from expectations include, but are not limited to, our relationship with EMC Corporation and IBM, a loss of any of our key customers, distributors, resellers or our manufacturer, our ability to expand our product offerings and any transition to new products, component quality and availability, the development of the storage area network and switch markets, any change in business conditions, changes in our sales strategy and product development plans, competition in the storage area network and switch markets, competitive pricing pressures, continued market acceptance of our products, name recognition of our products, delays in the development of new technology, changes in customer buying patterns issues, one-time events and other important factors disclosed previously and from time to time in EMC's and our filings at the U.S. Securities and Exchange Commission. These cautionary statements by us should not be construed as exhaustive or as any admission regarding the adequacy of disclosures made by us. We cannot always predict or determine after the fact what factors would cause actual results to differ materially from those indicated by the forward-looking statements or other statements. In addition, readers are urged to consider statements that include the terms ``believes,'' ``belief,'' ``expects,'' ``plans,'' ``objectives,'' ``anticipates,'' ``intends,'' ``targets,'' or the like to be uncertain and forward-looking. All cautionary statements should be read as being applicable to all forward-looking statements wherever they appear. We do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
McDATA and the McDATA logo are registered trademarks of McDATA Corporation. All other trademarks and product names are the property of their respective owners.
McDATA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
1999 2000 1999 2000
Revenue $38,412 $78,331 $95,263 $248,686
Cost of revenues 21,757 38,180 50,280 119,543
Gross profit 16,655 40,151 44,983 129,143
Operating expenses:
Research and development 7,151 9,974 24,001 37,818
Selling, general and
administrative 5,989 13,326 19,727 41,447
Amortization of deferred
compensation 1,107 1,837 2,185 6,459
Operating expenses 14,247 25,137 45,913 85,724
Income (loss) from operations 2,408 15,014 (930) 43,419
Interest income, net (163) 5,078 (872) 8,236
Income (loss) before income
taxes 2,245 20,092 (1,802) 51,655
Income tax expense (benefit) 227 7,841 (186) 20,891
Net income (loss) $2,018 $ 12,251 $(1,616) $30,764
Basic net income (loss)
per share $0.02 $0.11 $(0.02) $0.31
Shares used in computing
basic net income (loss)
per share 92,268 109,722 91,638 99,989
Diluted net income (loss)
per share $0.02 $0.10 $(0.02) $0.28
Shares used in computing
diluted net income (loss)
per share 101,360 119,325 91,638 107,953
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December 31, December 31,
1999 2000
Assets
Cash and short term investments $6,897 $365,690
Accounts receivable, net 9,993 14,708
Receivable from Parent 3,591 44,089
Inventories, net 6,952 23,105
Other current assets 5,730 12,699
Total current assets 33,163 460,291
Property and equipment, net 13,800 26,894
Long-term investments -- 22,378
Other assets, net 1,461 1,806
Total assets $48,424 $511,369
Liabilities and Stockholders' Equity
Current liabilities $17,350 $55,932
Obligations under capital leases and other 1,450 1,624
Stockholders' equity 29,624 453,813
Total liabilities and stockholders'
equity $48,424 $511,369
McDATA CORPORATION
CONDENSED PROFORMA CONSOLIDATED INCOME STATEMENTS (Note 1)
(in thousands, except per share data)
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
1999 2000 1999 2000
Revenue $38,412 $78,331 $95,263 $248,686
Cost of revenues (Note 1) 21,345 37,709 49,571 117,636
Gross profit 17,067 40,622 45,692 131,050
Operating expenses:
Research and development 7,151 9,974 24,001 37,818
Selling, general and
administrative 5,989 13,326 19,727 41,447
Amortization of deferred
compensation (Note 1) -- -- -- --
Operating expenses 13,140 23,300 43,728 79,265
Income from operations 3,927 17,322 1,964 51,785
Interest income, net (163) 5,078 (872) 8,236
Income before income taxes 3,764 22,400 1,092 60,021
Income tax expense (Note 1) 403 8,128 87 21,945
Net income $3,361 $14,272 $1,005 $38,076
Basic net income per share $0.04 $0.13 $0.01 $0.38
Shares used in computing basic
net income per share 92,268 109,722 91,638 99,989
Diluted net income per share $0.03 $0.12 $0.01 $0.35
Shares used in computing
diluted net income per share 101,360 119,325 98,725 107,953
Note (1) - The condensed pro forma consolidated income statements for all periods presented are for illustrative purposes only and are not prepared in accordance with generally accepted accounting principles. These pro forma statements show the operating results of the Company, excluding amortization of deferred compensation of $1,519 and $2,308 for the three month periods ended December 31, 1999 and 2000 and $2,894 and $8,366 for the years ending December 31, 1999 and 2000, respectively. The after-tax impact of these adjustments are $1,343 and $2,021 for the three month periods ended December 31, 1999 and 2000 and $2,621 and $7,312 for the years ending December 31, 1999 and 2000, respectively.
SOURCE: McDATA Corporation
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So in a tuff economic climate two sellers of directors did what they said they would and had sequential growth Q to Q.
This is really good for the sector and will help offset the EMLX and coming BRCD results. MCDT seems very well positioned with the chance of moving BRCD out of EMC and HWP ramp. I bought a few shares. |
