- 21 July 2004 13:09
StorageTek Announces Second Quarter Financial Results
SYDNEY, Australia, July 21, 2004 -- StorageTek® (Storage Technology Corp., NYSE:STK) today announced second quarter 2004 net income of US$35.6 million, or US$0.32 diluted earnings per share. These amounts compare to net income of US$30.1 million, or US$0.27 diluted earnings per share, for the second quarter of 2003. Revenue for the second quarter of 2004 was US$516.6 million compared to US$527.3 million for the second quarter of 2003. "We are pleased to report our sixteenth straight quarter of year-over-year earnings growth," said Patrick J. Martin, StorageTek chairman, president and chief executive officer. "This quarter we officially launched our SL8500 modular library system and announced our SL500 modular library system. They represent the beginning of a suite of offerings over the next year as a part of our Information Lifecycle Management strategy."
Storage services revenue grew 9% for the first six months of 2004 compared to the same period last year. "Our customers look to our professional services as a key enabler and crucial component required to successfully integrate an Information Lifecycle Management solution," said Martin.
Additionally, this quarter the company announced the authorisation for a US$500 million stock repurchase program. This share repurchase is intended to reduce dilution from employee stock plans and opportunistically balance the cash returned to shareholders through share repurchases with the cash reinvested in the business for profitable future growth.
Financial highlights for the second quarter include cash flow from operations of US$73 million, bringing the cash and investments balance to US$1.1 billion. "We will continue to invest in those areas where the profitable growth of our business is the top priority," said Robert S. Kocol, StorageTek's chief financial officer. "By the same token, we will drive the various operational disciplines that impact our business model and take the necessary steps to achieve consistent and improving results."
Certain statements, projections and forecasts contained herein regarding StorageTek's future performance and financial results, future products, and business plans 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 StorageTek'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 US$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.
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.
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