LOUISVILLE, Colo., April 23, 2002 - StorageTek (Storage Technology Corp.,
NYSE:STK) today announced first quarter 2002 net income of $6.0 million, or $0.06 diluted earnings per share. These amounts compare to a net loss of $3.0 million, or $0.03 diluted loss per share, for the first quarter of 2001. Revenue for the first quarter of 2002 was $455.9 million compared to $468.8 million for the first quarter of 2001.
"In light of the continuing market contraction and the tough global economies, we are pleased with our credible revenue performance," said Patrick J. Martin, StorageTek chairman, president and chief executive officer. "The strong year-over-year improvement in earnings reflects the continuation of expense and margin initiatives that we have made throughout the company."
First quarter 2002 revenue for storage services grew 6% over the same period last year. "We believe we offer our customers a unique value proposition, since we can provide a full suite of storage solutions, support and services across all platforms," continued Martin.
Additionally, StorageTek announced an innovative, 10-year agreement with EDS under which StorageTek will provide secondary storage services to all of EDS ' primary data centers in the United States. "We view this agreement as a unique opportunity to partner with one of our platinum customers to provide world-class services through our industry-leading storage solutions," said Martin.
Financial highlights for the first quarter include a robust cash balance of $484 million and cash flow from operations of approximately $120 million. "We are still discovering and delivering ways to further unleash trapped profitability," said Robert Kocol, StorageTek's chief financial officer. "We believe that the steps we are taking to manage the business in these challenging times should deliver improved earnings for the full year." more
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," "believes," "estimates," "continue," the negative of such terms and other comparable words. 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 the company's ability to develop, manufacture and market new products and services successfully; the effect of product mix and distribution channel mix on gross margins; the company's ability to continue to increase productivity; the ability to develop and protect intellectual property and other legal rights; customer acceptance of new technologies and standards; competitive pricing pressures; availability of supplies; significant changes in the company's management team during the last year; 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.