David,
Someone must be buying tape libraries to go along with their SAN networks--ADIC just reported (see PR below) both sequential and YoY growth in their 4th quarter (even if the sequential growth was just 8%), sales of $91m and forecasting sequential growth for next quarter as well (although it too will be anemic, but it sure beats the drops that other former high-flier firms are reporting). Of particular relevance to this thread are the following two paragraphs from the release:
"We are delighted to report continued widespread acceptance of our Storage Networking Libraries," ADIC President and Chief Operating Officer Chuck Stonecipher said. "Major OEM and branded customers are incorporating our architecture and roadmap including managed connectivity and SAN services."
He said, "We believe that, as the economy improves, our Storage Networking Libraries and associated software will represent an outstanding growth opportunity." The Company noted that more than 40 percent of its 2002 revenues are expected to be associated with Storage Area Network (SAN) installations or SAN-ready storage solutions.
Did you happen to hear anything at the conference about any growing demand for libraries? Or more about the demise of tape and its possible replacement by NAS appliances such as the NearStor product that NTAP is coming out with? Or was it a non-issue? Anything on LTO vs. SDLT?
Thanks for whatever insight you may have here,
Sam (long both ADIC and DSS/Quantum)
ADIC Q4 Sales of $91 Million Bring Fiscal Year Total to $365 Million as Annual Growth Tops 25 Percent
Sequential Quarterly Sales Growth Resumes, Further Growth Anticipated
REDMOND, Wash., Dec 12, 2001 (BUSINESS WIRE) -- ADVANCED DIGITAL INFORMATION CORPORATION (Nasdaq:
ADIC chart, msgs) today announced sales for its fourth fiscal quarter ended Oct. 31 grew eight percent over the same
quarter last year to $91.2 million, and grew nearly 26 percent to $364.7 million for the fiscal year.
Despite economic concerns, sequential quarterly sales grew approximately seven percent from the immediately preceding
quarter ended July 31. Pro forma earnings, after adjustment for previously announced acquisition costs and other
one-time items, were approximately $2.3 million, or four cents per fully diluted share, for the quarter and $18.3
million, or 29 cents per fully diluted share, for the fiscal year. Inclusion of acquisition costs and other one-time items
results in reported net losses for the quarter and year of $5.4 million and $10.8 million, respectively.
The Company has met or exceeded both sales and income estimates first announced July 19 and confirmed on Nov. 13. In
both cases, ADIC confirmed that strong growth relative to its storage networking peers and excellent opportunities for
continued growth would lead it to maintain heavy investments in product development, sales and service channels as well as
infrastructure improvements at the expense of optimizing short-term profits.
"The last several months have brought a dramatic slowdown in the economy, the effects of which were compounded by the
tragic events of September 11 and their aftermath," said Chairman and Chief Executive Officer Peter van Oppen. "Despite
these concerns, we are very pleased to report annual growth, on both a quarterly and fiscal year basis, resumed sequential
growth and profitability consistent with expectations that were established prior to the terrorist attacks."
"Further," van Oppen said, "current first quarter sales are expected to range between $90 million and $95 million and are
likely to show sequential sales growth over our traditionally strong fourth quarter."
"We are delighted to report continued widespread acceptance of our Storage Networking Libraries," ADIC President and
Chief Operating Officer Chuck Stonecipher said. "Major OEM and branded customers are incorporating our architecture and
roadmap including managed connectivity and SAN services."
He said, "We believe that, as the economy improves, our Storage Networking Libraries and associated software will
represent an outstanding growth opportunity." The Company noted that more than 40 percent of its 2002 revenues are
expected to be associated with Storage Area Network (SAN) installations or SAN-ready storage solutions.
OEM shipments for the fourth quarter and fiscal year 2001 totaled 43 percent and 42 percent of total sales, respectively,
versus 33 percent and 27 percent for the previous fourth quarter and fiscal year. During 2001, sales to Dell Computer
were $60.1 million and sales to IBM Corporation were $85.8 million.
As previously announced, pro forma earnings numbers include several adjustments to audited results eliminating one-time
costs that, in the judgment of management, are not reflective of the Company's ongoing performance. Such adjustments
include the elimination of $29.9 million in combined patent litigation costs, fees and inventory adjustments associated with
the acquisition of Pathlight Technology in May, more than half the net cost of which was offset by post-closing purchase
price adjustments. Fourth quarter and annual pro forma operating earnings also exclude a previously announced $2.3
million liability recorded to reflect the effect of the deteriorating economy on anticipated costs to exit a manufacturing and
development site which has been replaced by a larger facility.
Pro forma adjustments to other income total $10.7 million and include a previously announced $8.05 million reduction in
carrying value of investments in certain private technology companies. The remainder represents a non-cash loss of $2.64
million on covered derivative securities. This loss will be more than offset by cash gains that will be reflected as related
derivative contracts mature over the next two quarters.
All pro forma results assume a 35 percent tax rate. The reported tax provision reflects tax benefits associated with
one-time items excluded for pro forma purposes. Reported results for the fourth quarter and fiscal year 2000 have been
restated to reflect the acquisition of Pathlight Technology on a pooling-of-interests basis. Also, prior fourth quarter and
fiscal year results include one-time, pre-tax gains of $6.9 million and $97.3 million, respectively.
About ADIC
Advanced Digital Information Corporation (Nasdaq: ADIC chart, msgs) is a leading storage solutions provider to the open
systems marketplace, offering a broad range of Intelligent Storage(TM) products designed to enhance organizations'
abilities to store, protect, manage and use their rapidly growing network data. ADIC products include
technology-independent automated storage systems, specialized storage management software, and multiple-protocol
storage networking (SAN/NAS) connectivity and management tools. ADIC storage products are available through a
worldwide sales force and a global network of resellers and OEMs, including Dell, Fujitsu-Siemens and IBM. Further
information about ADIC is available at www.adic.com.
Conference Call
There will be a conference call to discuss the fourth quarter fiscal 2001 earnings and fiscal 2002 outlook at 5:30 A.M. PT
on Dec. 13, 2001. The call can be accessed live on our website at www.adic.com/ir.
This release contains forward-looking statements relating to the Company's future products and services and future
operating results that are subject to risks and uncertainties that could cause actual results to differ materially from those
projected. The words "expect", "anticipate", and similar expressions identify forward-looking statements, but their
absence does not mean that the statement is not forward-looking. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Factors that could
affect the Company's actual results include general economic trends, purchase deferrals by customers, technical
competition or obsolescence, supply constraints, changes in market pricing and production problems. Reference is made to
the Company's Quarterly Report on Form 10-Q for the quarter ended April 30, 2001 for a more detailed description of
factors that could affect the Company's actual results. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update
publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release
or to reflect the occurrence of unanticipated events.
ADIC and Scalar are registered trademarks and Intelligent Storage is a trademark of Advanced Digital Information
Corporation. All other trade or service marks mentioned in this release should be considered the property of their
respective owners.
ADVANCED DIGITAL INFORMATION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share amounts)
Three months ended Fiscal year ended
October 31, October 31,
2001 2000 2001 2000
--------- --------- --------- ---------
Net sales $ 91,171 $ 84,171 $364,681 $290,296
Cost of sales 66,331 51,989 258,893 183,717
Pathlight acquisition costs -- -- 4,109 --
--------- --------- --------- ---------
Gross profit 24,840 32,182 101,679 106,579
Selling and administrative
expenses 18,125 15,825 63,664 54,615
Research and development
expenses 7,607 5,527 27,763 19,959
Crossroads settlement costs -- 269 16,974 434
Pathlight acquisition costs -- -- 8,837 --
--------- --------- --------- ---------
Operating profit (loss) (892) 10,561 (15,559) 31,571
Other income (expense), net (8,632) 10,668 819 108,491
--------- --------- --------- ---------
Income (loss) before provision
for income taxes (9,524) 21,229 (14,740) 140,062
Provision (benefit) for income
taxes (4,118) 4,861 (3,908) 44,618
--------- --------- --------- ---------
Net income (loss) $ (5,406) $ 16,368 $(10,832) $ 95,444
========= ========= ========= =========
Basic net income (loss)
per share $ (0.09) $ 0.28 $ (0.18) $ 1.62
========= ========= ========= =========
Diluted net income (loss)
per share $ (0.09) $ 0.26 $ (0.18) $ 1.50
========= ========= ========= =========
Shares used in computing basic
net income (loss) per share 61,638 58,985 60,381 58,747
========= ========= ========= =========
Shares used in computing
diluted net income (loss)
per share 61,638 63,122 60,381 63,469
========= ========= ========= =========
ADVANCED DIGITAL INFORMATION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
October 31, October 31,
2001 2000
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 155,274 $ 194,268
Accounts receivable, net 82,451 70,092
Inventories, net 42,430 37,963
Marketable equity securities 23,352 19,349
Other current assets 21,632 11,829
----------- -----------
Total current assets 325,139 333,501
Property, plant and equipment, net 32,017 19,419
Service parts for maintenance, net 17,149 10,523
Investments 11,503 20,972
Other non-current assets 13,562 14,830
----------- -----------
$ 399,370 $ 399,245
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities $ 67,724 $ 71,480
Long-term debt 1,170 1,279
Shareholders' equity 330,476 326,486
----------- -----------
$ 399,370 $ 399,245
=========== ===========
Contact:
ADIC
Jon Gacek / Gayle Toney, 425/881-8004 |
