- 20 October 2004 17:23
Storagetek Announces Third Quarter Earnings Up 38 Percent
~ Earnings Grow 38 Percent on Modest Revenue Improvement ~
SYDNEY, Australia, Oct. 20, 2004 -- StorageTek® (Storage Technology Corp., NYSE:STK) has announced third quarter 2004 net income of $US42.8 million, or $US0.39 diluted earnings per share. These amounts compare to net income of $US31.0 million, or $US0.28 diluted earnings per share, for the third quarter of 2003. Revenue for the third quarter of 2004 was $US526.5 million compared to $US520.3 million for the third quarter of 2003.
Net income for the first nine months of 2004 was $US101.7 million, or $US0.91 diluted earnings per share, compared to $US77.6 million or $US0.70 diluted earnings per share for the first nine months of 2003. Revenue for the first nine months was $US1.56 billion compared to $US1.53 billion for the first nine months of 2003.
"We are pleased to deliver consistent, solid earnings improvement even in a rather modest economic environment," said Patrick J. Martin, StorageTek chairman, president and chief executive officer. "StorageTek is at the beginning of a robust launch of new storage solutions for customers and our customers are embracing these new technologies, new services and new storage management strategies.
"Additionally, we recently announced the acquisition of Storability Software, a storage software company based in Massachusetts. This acquisition is an important step to extend, support and accelerate our information lifecycle management strategy. We can better respond to our customers' requirements to effectively manage their data storage environments," said Martin.
Financial highlights for the quarter include cash flow from operations of $US121 million and the cash and investments balance was $US1.1 billion. During the quarter, the company invested over $US100 million under the share repurchase agreement announced in July 2004.
"We were able to maintain our healthy balance of cash while making substantial investments through our repurchase program. Our financial strength is critical in such challenging economic and social times. Customers look to those companies which have both the breadth of technologies and the depth of economic power when they make their purchasing decisions," said Robert Kocol, StorageTek chief financial officer.
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 $US2 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.
MEDIA CONTACT Chris Bowes Bowes Communications Tel: 02 9387 2332 Email: chris dot bowes at bowespr dot com