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Maxtor corporation ANNOUNCES FIRST QUARTER 2003 FINANCIAL RESULTS

Pro Forma Profit of $48.2 Million Driven by Improved Gross Profit Margins and Lower Operating Expenses

Maxtor Corporation (NYSE: MXO) today announced its financial results for

the first quarter ended March 29, 2003.  Revenue for the quarter was $938.9

million.  The Company reported net income on a GAAP basis of $27.4 million,

or $0.11 per share.  Included in the GAAP net income was a charge of $20.6

million for the amortization of intangible assets and $0.3 million in stock

compensation expense.  On a pro forma basis, excluding these charges,

Maxtor reported net income of $48.2 million, or $0.20 per share.  During

the third quarter of 2002, the Company shut down its network attached

storage business and, as a result, net income in prior periods has been

reclassified to reflect both continuing and discontinued operations.  In

the first quarter of 2002, Maxtor reported revenue of $1.036 billion from

continuing operations, a loss from continuing operations on a GAAP basis of

$55.4 million, or $(0.23) per share, and a pro forma loss from continuing

operations of $29.9 million, or $(0.12) per share.

 

"We are very pleased with our first quarter financial results and the

progress that the company made during the quarter," said Paul Tufano,

president and chief executive officer.  "Our pro forma gross profit margin

increased over two percentage points to 18.3% compared with 16.2% in the

fourth quarter.  Our operating expenses on a pro forma basis declined to

$118.3 million.  Our pro forma net income increased to $48.2 million, and

we generated cash from continuing operations of $44.2 million.

 

"During the course of the quarter, we continued our progress on the ramp of

our 80 GB areal density products.  Unit shipments of hard drives into

consumer electronics applications, primarily PVR, DVR and set-top boxes,

grew sequentially.  Our new Atlas 10K IV 36 GB per platter server drive was

qualified at our major server OEM customers and is shipping in volume.

Finally, we broke ground on an 800,000 square foot manufacturing facility

in Suzhou, China, which we believe will provide Maxtor with a low-cost

option to accommodate the expected growth of our hard drive business over

the next decade."



Over Maxtor

Maxtor Corporation (www.maxtor.com) is een van 's werelds meest

vooraanstaande leveranciers van  oplossingen voor informatie-opslag. Het

bedrijf voert een breed spectrum opslagproducten voor PC's, servers met

Intel-processoren en consumenten-elektronica-producten. Maxtor heeft een

degelijke reputatie als marktleider opgebouwd door haar afnemers sinds jaar

en dag hoogwaardige producten en ondersteuning te bieden. Kijk voor meer

informatie over Maxtor en haar producten op www.maxtor.com.  Maxtor is

genoteerd aan de effectenbeurs van New York.

 

Fleishman-Hillard Nederland
Marion Beishuizen
Tel: 020 346 08 80
info@fleishman.nl

Maxtor
Annie Bernard
Tel: 0033 (0)1 64 53 24 18
annie_bernard@maxtor.com


Verstreken tijd: 23 jaar en 90 dagen

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