Thursday July 22, 8:15 am Eastern Time
Adaptec Reports First Quarter Profits
of $51 Million
Revenue $192 million
MILPITAS, Calif.--(BUSINESS WIRE)--July 22, 1999--Adaptec,
Inc. (Nasdaq:ADPT - news) today announced financial
results for its first quarter of fiscal year 2000 which
ended June 30, 1999.
Actual net revenues for
the first quarter were $192 million. Actual net
income was $51 million. Actual diluted earnings per
share were $0.46. Excluding the gain on the sale of a
piece of property, EPS would have been $0.44.
Adaptec attributed the healthy first quarter to continued
strong demand for the company's RAID and host I/O
products, which provide reliable information access for a
variety of Internet, e-business, and server applications.
The demand is fueled by the growth of servers, and
strong global product acceptance and market expansion.
Normalized(1) ((1) see editorial addendum) operating results
for the first quarter and comparative quarters were:
-- Net revenues of $192 million, up
32% from net revenues of $146
million in the
first quarter of fiscal year 1999 and up 8%
sequentially from net revenues of $178 million in the
quarter of fiscal year 1999
-- Net income of
$48 million, up 250% from net income of $14
in the first quarter of fiscal year 1999 and up
from net income of $40 million
in the fourth quarter of fiscal
Diluted earnings per share of $0.44, up 267% from
earnings per share of $0.12 in the corresponding
year, and up 22% sequentially from
diluted earnings per share of
$0.36 in the fourth
quarter of fiscal year 1999
``Our first quarter
results demonstrate the excellent alignment of our
products to the needs of the market and to our customers'
roadmaps,'' said Bob Stephens, president and chief executive
officer of Adaptec. ``Host I/O, RAID, and CD-R software
all offer solid growth potential and favorably
position Adaptec for the future.''
During the first quarter, Adaptec's host I/O business
showed strong demand among OEMs and in distribution
channels. Adaptec was the first to offer OEMs the world's
fastest storage technology with the introduction of
Ultra160 SCSI. In early July, Adaptec announced that
Compaq Computer Corporation selected the company's
Ultra160 SCSI products for its high-end desktop and
workstation line, underscoring Adaptec's market leadership.
Adaptec's RAID products offer industry-unique features and
functionality including powerful, sophisticated RAID software
and 160 MB/sec. performance. They continue to command
a lead in unbranded ``white box'' servers in the
distribution channel. Adaptec's RAID strength is validated by
a recent design win at Micron Electronics.
Adaptec's CD-RW software remains a global favorite among
manufacturers and end users. The company debuted its new Easy
CD Creator version 4.0, adding new Internet features
(such as MP3 capability) to the product. Adaptec's
exclusive marketing relationship with MP3.com (announced on
April 27, 1999) and the huge interest in
Web-downloadable music give Adaptec an edge in the world of
On July 9, Adaptec announced that
it acquired CeQuadrat of Aachen, Germany in a cash
deal valued at approximately $25 million. This
acquisition offers the company a new European CD-RW software
center and will strengthen its development, marketing,
sales, and support efforts for CD-RW software in that
In corporate news, Adaptec appointed
Robert Schultz the company's new chief operating
officer. Schultz comes to Adaptec from Compaq Computer
Corporation where he most recently held the position of vice
president, Server Storage Business Unit, Storage Products
I've been long since March of 98, and have been
reading the posts on this board since before then. The
direction the stock value seem to regulate the additude of
this board. The posts sound really quit positive right
now. Thanks to everyone for the information, /
misinformation..... God bless. and heres to another good qtr for
ADPT................ Hopefully Greenspan won't get to much in the way
of the price movement in the morning.
I'm in the EDT zone so I'll miss the press
release & the live CC.
Somehow I think when I get
back & go to this board, I'll find out what happened.
(but do intend to listen to the CC replay). Till
BTW I do have a case in the frig.