nStor Technologies, Inc. Reports Third Quarter Operating Results
Business Wire - November 14, 1997 13:23
WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Nov. 14, 1997--nStor Technologies, Inc. (AMEX: "NSO") today reported operating results for the third quarter and first nine months of 1997.
Sales during the three months ended Sept. 30, 1997 approximated $6.0 million, which represented a 92% increase when compared with sales of approximately $3.1 million in the prior-year period. The company reported a net loss of $1,220,000 (7 cents per share) in the third quarter of 1997, versus net income of $975,000 (6 cents per share) in the year-earlier quarter. Net income during the third quarter of 1996 included a non-recurring gain of $807,000 related to the partial sale of an investment in IMNET Systems Inc.
For the nine month period ended Sept. 30, 1997, the company's sales totaled $20.5 million, versus sales of $4.4 million in the corresponding period of the prior year. No sales were recorded prior to the June 3, 1996 acquisition of Seagate Storage Systems Group (formerly Conner Systems Storage Group), as the company had no active operations prior to such acquisition. A net loss of $2,412,000 (13 cents per share) was recorded during the first nine months of 1997. This compared with net income of $12,163,000 (69 cents per share) in the year-earlier period, which included non-recurring gains totaling $11,955,000 related to the sale of an investment in IMNET Systems Inc.
"Disk drive prices declined substantially during the second and third quarter of 1997, which negatively impacted nStor's year-to-date revenues and margins," commented R. Daniel Smith, president of nStor Corp. "Although our profitability suffered during this period of investment in manufacturing and marketing infrastructure for our new products, nStor Corp. was profitable during the month of October, as sales began to accelerate. We expect this trend of increasing sales and earnings to continue in the fourth quarter."
"During the first nine months of 1997, nStor completely re-engineered its product line to incorporate the latest in RAID technology, positioning ourselves as the premier provider of enterprise-wide storage solutions," added Smith. "We assimilated the acquisition of Parity Systems Inc., introduced the Parity + product line into the UNIX marketplace, and consolidated all manufacturing operations into expanded facilities in Lake Mary, Fla. We also entered into a licensing agreement with Silicon Graphics Inc. (NYSE:SGI), which allows nStor to manufacture and distribute SGI-compliant memory products for their new Origin(TM) and Onyx2(TM) products. Last month we signed a distribution agreement with Access Graphics Inc., a leading distributor of SGI products, to distribute nStor's complete line of SGI memory products to system integrators and value-added resellers throughout the U.S., Canada, Mexico and Latin America."
"There is also a tremendous effort underway to expand our Fibre Channel product offerings and to provide complete storage management utilities across multiple hardware and operating system platforms," added Smith. "Meanwhile, orders for the cross-platform CR8e, our flagship cluster-ready RAID subsystem which we began shipping in late June, continue to increase as the systems have met or exceeded our customers' performance requirements."
"Burgeoning growth of the NT and Unix markets, for example, will significantly expand information storage requirements on a worldwide scale during the next several years. With a complete line of products for most information processing platforms, nStor is well-positioned to increase its share of the growing storage solutions market place," concluded Smith.
"We are confident the demand for secure information storage solutions will continue to grow as we approach and enter the 21st Century," stated Mark Levy, president of nStor Technologies Inc. nStor Technologies, Inc. is a leading manufacturer and supplier of high-performance data storage products, including external RAID subsystems, UNIX-based memory products, tape backup solutions, storage management hardware and software, enterprise resource planning (ERP) manufacturing software and digital media management products. nStor products are marketed through a worldwide network of OEMs, distributors, value-added resellers, system integrators and corporate accounts. Additional information on nStor is available on the World Wide Web at nstor.com. nStor Technologies, Inc. is headquartered in West Palm Beach, Flo., and its primary operating subsidiary, nStor Corp. Inc., is based in Lake Mary, Fla. (Orlando area). The Company's common stock is traded on the American Stock Exchange under the symbol "NSO". Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that actual results may differ substantially from such forward-looking statements. Forward-looking statements involve risks and uncertainties, including, but not limited to, continued acceptance of the Company's products in the marketplace, competitive factors, new products and technological changes, the Company's dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the Company's periodic report filings with the Securities and Exchange Commission. |
