Adaptec Revenues Increase 27 Percent in Third Quarter

1/28/2003 - Adaptec, Inc. (NASDAQ:ADPT), a global leader in data storage access solutions, announced third quarter net revenues of $109.0 million, a 27.1 percent increase over the $85.7 million reported in the prior period and up from last year's same quarter of $105.2 million. Third quarter pro forma earnings were $0.03 per diluted share and pro forma net income was $3.0 million for the period ended December 31, 2002.

On a GAAP basis, the company recorded a net loss of $3.5 million, representing a net loss of $0.03 per diluted share.

"Revenues increased 27 percent over the prior quarter due largely to IBM ServeRaid shipments," said David A. Young, chief financial officer. "In addition, we reduced operating expenses, increased cash by 1.4 percent, reduced inventories by approximately 19.9 percent and improved our DSO by 8.9 percent."

Pro forma operating results for the third quarter of fiscal year 2003 and comparative periods, last quarter and last year, were as follows:

  • Net revenues this quarter were $109.0 million, up 27.1 percent from $85.7 million last quarter and up 3.6 percent from $105.2 million in the same quarter last year.
  • Gross margin this quarter was 44.1 percent, down from 53.9 percent last quarter and down from 54.6 percent in the same quarter last year, due principally to the ServeRaid business with IBM.
  • Operating expenses this quarter were $47.7 million, down 2.7 percent from $49.0 million last quarter and down 4.5 percent from $49.9 million in the same quarter last year.
  • Net income this quarter was $3.0 million, compared to $0.6 million last quarter and $8.8 million in the same quarter last year.
  • Diluted earnings per share this quarter were $0.03, compared to $0.01 last quarter and $0.08 in the same quarter last year.

GAAP operating results for the third quarter of fiscal year 2003 and comparative periods, last quarter and last year, were as follows:

  • GAAP net revenues and gross margins were the same as reported for pro forma.
  • Operating expenses this quarter were $55.2 million, compared to $64.2 million last quarter and $93.6 million in the same quarter last year.
  • Net loss this quarter was $3.5 million, compared to a net loss of $10.8 million last quarter and a net loss of $34.1 million in the same quarter last year.
  • Net loss per share this quarter was $0.03, compared to a net loss per share of $0.10 last quarter and a net loss per share of $0.33 in the same quarter last year.

Attached is a reconciliation of pro forma net income to GAAP net income.

Business Update
The Storage Solutions Group increased shipments of the next generation Ultra-320 SCSI host adapter boards to OEM and channel customers and saw increased revenue from the ServeRaid agreement with IBM. In the Desktop Solutions Group, revenues increased from the suite of video solutions that enable consumers to easily create DVDs and video CDs on their home computers. The Storage Networking Group shipped TCP/IP off-load engine and iSCSI products to select OEM accounts and initiated an end-user beta program.

Previous Page | News by Category | News Search

If you found this page useful, bookmark and share it on:

 
Embedded Star Newsletter
Don't have time to visit Embedded Star everyday? Then sign up for our free newsletter. We'll send you an email when we have something to share with you. Your email address will be kept confidential and we will not share, sell, or rent it to anyone. You can unsubscribe at any time by clicking a link in the email.

Enter your email address to sign up for our free newsletter:   

If you are familiar with RSS feeds, you can also sign up for our free blog feed. Our RSS feed is updated in real-time while our newsletter is updated daily.