Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Gus who wrote (5149)	1/6/1999 9:14:00 AM
From: Stitch	Respond to of 9256

Gus, Here is an enterprise storage vendor with a surprise. I am a bit blindsighted by this one. Had been working up a case for them. Wonder how Ryal Poppa is doing? StorageTek Expects Fourth Quarter Earnings Between .50 and .55 Cents Per Share; Reports New Product Shipments Are On Track; Expanded Production Capacity for Key New Product Planned January 6, 1999 LOUISVILLE, Colo.--(BUSINESS WIRE) via NewsEdge Corporation -- Jan. 5, 1999--Storage Technology Corp. (NYSE:STK) said that based on its current assessment of its 1998 fiscal fourth quarter performance it expects total revenue and net earnings will fall below the range of analysts' published estimates. For the fourth quarter ended Dec. 25, 1998 the company expects net earnings will be within a range of .50 to .55 cents per share. According to First Call the range of expectations of securities analysts is .67 to .77 cents per share. The company said that it expects revenue to be higher than its 1998 third quarter but down from the year earlier fourth quarter. The company said it plans to report final results the week of Jan. 18. The company said it is pleased with the progress of two key new product introductions that have begun to make a contribution to revenue in the fourth quarter -Virtual Storage Manager(TM) (VSM(TM)) and the 9840 tape drive. "We are on target with our previous projections for shipments of both VSM and the 9840," said David E. Weiss, chairman, president and chief executive officer. "We entered general availability for both products in December. The manufacturing cycle for both products is on track and we expect to have shipped approximately 200 VSM systems and 3,000 9840s by the middle of this quarter." "We anticipate revenue during the fourth quarter from sales of approximately 45 VSM systems and 600 9840s. We are pleased with this progress and we believe it bodes well for acceleration of revenue growth in 1999. The revenue contribution from the new products, however, appears to have been insufficient to offset an expected decline in revenue and margin from older products. "To assure that we have expanded capacity to meet the excellent demand for the 9840, we recently signed a letter of intent with MKE-Quantum Components to obtain additional production capacity for tape heads. This capacity should enable us to significantly increase our 9840 tape drive production. The 9840 is the first tape drive to span the entire enterprise from mainframe attachment to large-scale open systems," Weiss said. The assumptions, expectations and forecasts contained herein regarding StorageTek's future plans, financial results and performance may constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks and uncertainties that could cause actual results to differ materially as discussed in StorageTek's reports on Forms 10-K, 10-Q and 8-K that are filed with the Securities and Exchange Commission (SEC). Best, Stitch