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Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: George Dawson who wrote (260)	1/5/1998 9:47:00 AM
From: Neil S	Respond to of 4808

NEWS: Ciprico Lowers 1st Quarter Expectations Despite Record Orders; Stock Buyback Program Announced MINNEAPOLIS, Jan. 5 /PRNewswire/ -- Ciprico Inc., (Nasdaq: CPCI) today announced that it expects earnings for its fiscal first quarter, ending December 31, 1997, to be lower than anticipated. The Company estimates sales for the current quarter to be $7.2 - $7.7 million and earnings to be 8 - 13 cents per share. The Company experienced record orders this quarter but orders were "back-end loaded," and the product mix was different than anticipated causing the shortfall in sales and earnings. As a result, the Company's backlog of orders is much larger than usual. "We had a large increase in our 6900 Series disk arrays orders instead of the 7000 and 6500 Series product mix as originally projected," said Robert H. Kill, Ciprico President and CEO. "Our suppliers did an outstanding job expediting materials to make shipments but we were unable to fulfill all customer orders in the first quarter, resulting in less than anticipated financial results." Mr. Kill further stated, "We see momentum building in the product orders across all of our markets and we are enthusiastic about our opportunities for 1998. We are especially pleased with the increased sales in both the oil/gas and satellite/telemetry markets. Our 7000 Series Fibre Channel disk array continues to be the market leader and we anticipate strong sales in the upcoming quarters." Stock Buyback Program Ciprico also announced today that its Board of Directors has authorized the repurchase of shares of its Common Stock from time to time in open market and privately negotiated transactions in an aggregate amount of up to $3 million. "We at Ciprico believe our future business opportunities are very promising," said Mr. Kill. "We remain focused on our target markets, continue to provide leadership products and see our own Company as an excellent investment opportunity." Certain statements in this news release are forward-looking statements. The Company's quarterly and annual operating results are affected by a wide variety of factors such as market conditions, fluctuating backlog levels, or component cost and availability that could adversely affect sales and profitability. Therefore, the Company's actual results could differ materially from those expressed in forward-looking statements. For more complete information on forward-looking statements and risks, please read the Company's annual filing with the SEC. Ciprico Inc., an ISO certified company, designs, manufactures, markets and services disk arrays for the high-performance imaging and digital media markets. The Company's products are sold worldwide to technical, scientific and creative professionals who require high performance, capacity and fault tolerance from their storage. Additional information about Ciprico can be obtained through the Internet on www.ciprico.com. SOURCE Ciprico Inc. CO: Ciprico Inc. ST: Minnesota IN: CPR SU: ERP