StrorageTek announces fourth quarter and full year financial results
Announcement posted by StorageTek 24 Jan 2003
~ Q4 2002 Earnings of $US0.57 Per Share, Including $US0.10 Per Share Tax
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StorageTek (Storage Technology Corp., NYSE:STK) today announced fourth quarter 2002 net income of $US61.1 million, or $US0.57 diluted earnings per share. Those results include a tax benefit of $US10.5 million, or $US0.10 per diluted share, from the favourable resolution during the fourth quarter 2002 of prior year tax audits. Net income for the fourth quarter of 2001 was $US40.0 million, or $US0.38 diluted earnings per share, including a benefit of $US2.2 million, or $US0.02 per diluted share, from the net impact of special items. Revenue for the fourth quarter of 2002 was $US590.1 million compared to $US566.4 million for the fourth quarter of 2001.
Net income for 2002 was $US110.0 million, or $US1.02 diluted earnings per share, including the tax benefit of $US10.5 million, or $US0.10 per diluted share. Net income for 2001 was $US67.2 million, or $US0.64 diluted earnings per share, including the benefit from special items of $US2.2 million, or $US0.02 per diluted share. Revenue for 2002 was $US2.04 billion compared to $US2.05 billion for 2001.
"We are very pleased to deliver revenue and earnings growth for the fourth quarter and year-over-year earnings improvement for the tenth quarter in a row," said Patrick J. Martin, StorageTek chairman, president and chief executive officer. "This was our best quarter for revenue in the past two years and has resulted in StorageTek gaining market share in tape, disk, networking and storage services. We have outperformed our competitors in tape solutions and we grew our disk and network revenues in excess of 40 percent over fourth quarter 2001. We continue to deliver strong earnings performance and are positioned to deliver revenue growth across all product and service offerings."
Storage services revenue increased 12 percent for the fourth quarter from the same period in 2001 and 11 percent for the full year. Gross margin for services increased from 41 percent for 2001 to 44 percent for 2002.
"StorageTek's ability to provide total storage solutions is critical as IT budgets continue to be under pressure. Customers are embracing StorageTek as a member of their own team to create and implement their storage strategies for the future," said Martin.
Financial highlights for the quarter include a cash balance of $US658 million, quarterly cash flow from operations of approximately $US100 million and an inventory balance of $US133 million. For the full year, the cash balance increased over $US200 million and inventory was reduced by over $US50 million. "Over the last two years we have been successful in strengthening our business model," said Robert Kocol, StorageTek's chief financial officer. "We continue to invest in our future while improving the overall operations of the corporation. This is evidenced by our commitment to research and development while streamlining our business to deliver solid margins."
A replay of StorageTek's fourth quarter and full year financial results conference is available on the company's website. The replay is also available by dialing +1.719.457.0820. Use pass code 731194.
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 continue to increase productivity; competitive pricing pressures; rapid technological changes in the markets in which we compete; our ability to attract and retain highly skilled employees; our ability to protect and develop intellectual property rights; our reliance on certain sole source suppliers; potential delivery delays from sub-contractors and increased lead time in ordering parts and components; 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 (NYSE:STK), a $US2 billion worldwide company with headquarters in Louisville, Colo., delivers a broad range of storage solutions for digitised 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 maximise IT productivity to ensure enterprise-class business continuity. For more information, see www.storagetek.com.
Net income for 2002 was $US110.0 million, or $US1.02 diluted earnings per share, including the tax benefit of $US10.5 million, or $US0.10 per diluted share. Net income for 2001 was $US67.2 million, or $US0.64 diluted earnings per share, including the benefit from special items of $US2.2 million, or $US0.02 per diluted share. Revenue for 2002 was $US2.04 billion compared to $US2.05 billion for 2001.
"We are very pleased to deliver revenue and earnings growth for the fourth quarter and year-over-year earnings improvement for the tenth quarter in a row," said Patrick J. Martin, StorageTek chairman, president and chief executive officer. "This was our best quarter for revenue in the past two years and has resulted in StorageTek gaining market share in tape, disk, networking and storage services. We have outperformed our competitors in tape solutions and we grew our disk and network revenues in excess of 40 percent over fourth quarter 2001. We continue to deliver strong earnings performance and are positioned to deliver revenue growth across all product and service offerings."
Storage services revenue increased 12 percent for the fourth quarter from the same period in 2001 and 11 percent for the full year. Gross margin for services increased from 41 percent for 2001 to 44 percent for 2002.
"StorageTek's ability to provide total storage solutions is critical as IT budgets continue to be under pressure. Customers are embracing StorageTek as a member of their own team to create and implement their storage strategies for the future," said Martin.
Financial highlights for the quarter include a cash balance of $US658 million, quarterly cash flow from operations of approximately $US100 million and an inventory balance of $US133 million. For the full year, the cash balance increased over $US200 million and inventory was reduced by over $US50 million. "Over the last two years we have been successful in strengthening our business model," said Robert Kocol, StorageTek's chief financial officer. "We continue to invest in our future while improving the overall operations of the corporation. This is evidenced by our commitment to research and development while streamlining our business to deliver solid margins."
A replay of StorageTek's fourth quarter and full year financial results conference is available on the company's website. The replay is also available by dialing +1.719.457.0820. Use pass code 731194.
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 continue to increase productivity; competitive pricing pressures; rapid technological changes in the markets in which we compete; our ability to attract and retain highly skilled employees; our ability to protect and develop intellectual property rights; our reliance on certain sole source suppliers; potential delivery delays from sub-contractors and increased lead time in ordering parts and components; 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 (NYSE:STK), a $US2 billion worldwide company with headquarters in Louisville, Colo., delivers a broad range of storage solutions for digitised 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 maximise IT productivity to ensure enterprise-class business continuity. For more information, see www.storagetek.com.