LOUISVILLE, Colo. - May, 2005 - StorageTek® (Storage Technology Corporation, NYSE: STK), announced first quarter 2005 net income of $23.4 million, or $0.22 diluted earnings per share. These amounts compare to net income of $23.3 million, or $0.21 diluted earnings per share, for the first quarter of 2004. Revenue for the first quarter of 2005 was $499.3 million compared to $515.1 million for the first quarter of 2004.
"While we grew our profits on a year-over-year basis, this was not the quarter that we had expected to deliver," said Patrick J. Martin, StorageTek chairman, president and chief executive officer. "However, as we enter the second quarter, our backlog and pipeline of business have improved and we anticipate delivering better results for the remainder of 2005."
Tape automation products continue to show strong growth as evidenced by the 70 percent year-over-year increase in sales. "We are pleased to see that our SL8500 high-end library and the SL500 mid-range library are gaining widespread market acceptance. Customers are coming to truly value our automated tape solutions as the preferred choice for data protection and archiving," continued Martin.
Financial highlights for the first quarter include a cash and investment balance of $1.15 billion, cash flow from operations of approximately $52 million, and share repurchases of approximately $57 million. "The balance sheet and financial strength of StorageTek continue to remain solid," said Robert S. Kocol, StorageTek's chief financial officer. "We will continue to focus on operational disciplines in order to drive continuous improvement in our business."
This press release contains certain statements, projections and forecasts regarding StorageTek’s future business plans, financial results, products and performance that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of words such as "may," "will," "should," "expects," "plans,"
"anticipates," and "believes." There are a number of risks and uncertainties that could cause the company’s actual results to differ materially.
Some of these risks and uncertainties include, but are not limited to, StorageTek’s ability to develop, manufacture and market new products and services successfully; the effect of product mix and distribution channel mix on our gross margins; our ability to execute our Information Lifecycle Management strategy; competitive pricing pressures; rapid technological changes in the markets in which we compete; our ability to attract and retain highly skilled employees; changes in our management; our ability to protect and develop intellectual property rights; our reliance on certain sole source suppliers; our ability to obtain quality parts and components in a timely manner; general economic conditions in the United States and globally; and other risks described in StorageTek’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that are filed with the Securities and Exchange Commission and which are available on the SEC’s website.
About StorageTek
StorageTek is a $2.2 billion global company that enables businesses, through its information lifecycle management strategy, to align the cost of storage with the value of information. The company’s innovative storage solutions manage the complexity and growth of information, lower costs, improve efficiency and protect investments. For more information, see www.storagetek.com, or call 1.800.786.7835.
TRADEMARKS: StorageTek and the StorageTek logo are registered trademarks of Storage Technology Corporation. Other names mentioned may be trademarks of Storage Technology Corporation or other vendors/manufacturers.