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 : Mylex -- Ignore unavailable to you. Want to Upgrade?

To: Baker who wrote (1764)	1/28/1999 10:52:00 PM
From: miklosh	Respond to of 1820

Mylex Announces Year End 1998 Results biz.yahoo.com Revenue Up 25% Quarter Over Quarter and 10% Year Over Year FREMONT, Calif.--(BUSINESS WIRE)--Jan. 28, 1999--Mylex Corporation (Nasdaq:MYLX - news) today announced results for the fourth quarter and year ended Dec. 26, 1998. Net sales for the fourth quarter were $39.1 million, an increase of 25 percent, compared to $31.3 million in the fourth quarter of 1997. The net loss for the quarter was $1.0 million, or ($0.05) per share (fully diluted) compared to a net loss of $0.7 million, or ($0.03) per share, in the same period last year. The company's results for the fourth quarter reflect a special charge for the settlement of litigation with the company's former president. The total settlement amounted to $4.2 million and (after giving effect to amounts previously provided) the settlement resulted in a charge to earnings in the fourth quarter of $3.7 million or a negative after-tax effect on earnings per share of $0.12. Without the settlement charge, the company would have reported net income of $1.3 million, or $0.07 per share, which exceeds Wall Street expectations for the fourth quarter of 1998. For the year ending Dec. 26, 1998, net sales rose 10 percent to $135.7 million, compared to $123.6 million in 1997. The net loss for the year was $7.1 million, or ($0.36) per share, compared to a net loss of $5.9 million, or ($0.29) per share, in 1997. 1998 year end results also include $4.3 million in non-recurring charges associated with a corporate restructuring announced in July 1998. Excluding this charge and the settlement charges of $3.7 million, the net loss for the year narrows to $2.1 million, or ($.11) per share. ''We are extremely pleased with the progress we have made as a company in 1998,'' said Al Montross, Mylex president and CEO. ''We believe our return to operating profitability is directly related to the actions taken over the last eighteen months to strengthen our management team, streamline our operations, and improve the competitiveness of our products. This performance would not have been possible without the dedication and efforts put forth by Mylex's employees and partners around the world.'' Montross continued, ''The strong acceptance of our broad family of RAID controller products by both new and existing customers, has us encouraged about the growth opportunities for our business and provides us a solid foundation to build upon in 1999.'' Montross continued, ''The settlement of this long running litigation in the last few days was the final step in putting our past behind us.'' Colleen Gray, Mylex's VP Finance and CFO, stated, ''By settling the case before the trial, scheduled to begin in mid-February 1999, the company has avoided estimated pre-trial and trial expenses of approximately $1 million, as well as possible additional expense in the event a jury would have agreed with the plaintiff's allegations and awarded all the damages claimed.'' Gray continued, ''The settlement allowed us to begin 1999 with a clean slate.'' Commenting on the results for 1998, Gray added, ''While net sales increased only 10% year over year, these results mask the success realized to date with new products -- most notably with the external RAID product line. While our traditional high performance RAID product line increased 10 percent year over year and host bus adapter sales (which we have now transitioned to low cost RAID solutions) declined slightly (4 percent); sales of external products increased 70 percent over 1997 levels. We continue to see healthy demand for our new products (those announced or released within the last year), and believe we are well positioned in 1999 for growth and profitability.'' In 1998, the company repurchased a total of 667,900 shares of common stock at a cost of $4.7 million. The company ended the year with $43 million in cash and cash equivalents and short-term investments. ---------------------------------------------------------------- I am encouraged by this report, especially this part:<Without the settlement charge, the company would have reported net income of $1.3 million, or $0.07 per share, which exceeds Wall Street expectations for the fourth quarter of 1998. >,as well as the share repurchase stats. It looks like mylex is finally returning to profitability, and now let's hope the street can take their eyes away from msft dell csco and yahoo etc.. long enough to notice mylex.<g>

To: Baker who wrote (1764)	1/31/1999 2:26:00 PM
From: E_K_S	Read Replies (1) \| Respond to of 1820

Hi Baker - I hope all the bad news is now behind us and with the excellent volume that traded Friday (after earnings) several new buyers agree. What are your earnings projections for the next few quarters if the industry remains strong? I know that LSI (w/ Symbosis) and ADPT had very good quarters due to strong RAID sales....but will this continue for several more quarters? Working backwards it appears that the market has priced MYLEX to earn between $0.50-$0.63 per share for next year or about $0.15/share per quarter looking forward. It has been awhile since MYLEX has put together several positive quarters back to back....Last time we got back on track we had all those inventory problems that lasted several quarters. Is there any chance Mylex can earn $1.00/share in FY 2000? If so, then perhaps I will continue to hold...What's your read for the next 18 months? EKS P.S. I noticed that in 1996 Mylex earned $0.86/share and the stocked peaked in price 1QTR 1996 at between $20-$25 per share. By Q2 1996 the stock slid back to $12.00 and finally reached a low in 1998 at $4.00. I wonder if this time it will be different?