Earnings Per Share Improves 113 Percent Over Third Quarter 2000
LOUISVILLE, Colo., October 24, 2001 - StorageTek® (Storage Technology Corp.,
NYSE:STK) today announced third quarter 2001 net income of $17.9 million, or
$0.17 diluted earnings per share. These amounts represent an improvement of
113 percent over third quarter 2000 net income of $8.4 million, or $0.08 per
share, excluding restructuring charges. Reported third quarter 2000 net
income was $6.3 million, or $0.06 per share. Revenue for the third quarter
of 2001 was $498 million, as compared to revenue for the third quarter of
2000 of $487 million. Gross margins were 45 percent for the third quarter
of 2001 compared with 43 percent for the third quarter of 2000 and 43
percent for the second quarter of 2001. This margin increase was driven by
product mix, channel mix and productivity initiatives.
"I am pleased that we were able to deliver on our plans in this very
challenging economic environment. I want to congratulate our employees for
pulling together to make this quarter successful and for their commitment to
our customers during this painful time in history," said Patrick Martin,
StorageTek chairman, president and chief executive officer. "In spite of
the challenges, we had quite a respectable revenue performance with a strong
flow-through to profits."
Revenue from the U.S./Canada direct sales force was up over 15 percent
compared with the same quarter of 2000. "Our customers are under tremendous
pressure and they require storage solutions that are economically feasible.
Our sales force is experienced and trained to help customers determine the
storage configuration that best meets their needs and we appreciate our
customers' confidence in our solutions," said Martin.
Financial highlights for the third quarter include an increase in the cash
balance to $352 million from $280 million at the end of fiscal 2000. The
company generated cash flow from operations of approximately $60 million in
the third quarter of 2001 and $125 million in the first nine months of 2001.
"We continue to drive efficiencies across all sectors of this company," said
Robert Kocol, StorageTek's chief financial officer. "We have demonstrated
our ability to unleash trapped profitability, and we are seeing greater
savings and efficiencies unfolding as we reposition ourselves to become a
leaner company."
StorageTek will conduct the third quarter financial results conference call
today, October 24, 2001, at 5:00 p.m. EDT. Please join us for a live audio
web cast at http://storagetek.shareholder.com/medialist2.cfm?companyid=STK.
If you prefer to join via telephone line, please dial 800-406-5356 at least
5 minutes prior to the start of the call.
A replay of the call will be available on the web through midnight Saturday,
November 24, 2001. The replay will also be available beginning at 7:30 p.m.
EDT on October 24 through midnight Sunday, November 4, by dialing
888-203-1112 or 719-457-0820. Enter passcode 656137.
This press release contains certain statements, projections and forecasts
regarding StorageTek's future plans, financial results and performance that
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. There are a number of risks and
uncertainties that could cause actual results to differ materially. Some of
these risks and uncertainties include the ability to develop, manufacture
and market new products and services successfully; the effects of product
mix and distribution channel mix on gross margins; the ability to continue
to reduce operating expenses; the ability to develop and protect
intellectual property and other legal rights; customer acceptance of new
technologies and standards; competitive pricing pressures; relationships
with partners, suppliers, and distribution channels; changes in lead times
or availability of supplies; changes in the Company's management team; the
ability to attract, retain and motivate highly skilled employees; and
general economic conditions and other risks described in the Company'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 (NYSE:STK), a $2 billion worldwide company with headquarters in
Louisville, Colo., delivers a broad range of storage solutions for digitized
data. StorageTek solutions are easy to manage and allow universal access to
data across servers, media types and storage networks. StorageTek is the
innovator and global leader in virtual storage solutions for tape
automation, disk storage systems and storage networking. Because of
StorageTek, customers can manage and leverage their digital assets as their
businesses grow and can maximize IT productivity to ensure enterprise-class
business continuity. For more information, see www.storagetek.com, or call
1.800.786.7835.
TRADEMARKS: StorageTek is a registered trademark of Storage Technology Corp.
All other products or company names mentioned are used for identification
purposes only, and may be trademarks of their respective owners.