Maxtor announces Q1 financial results
Announcement posted by Maxtor 19 May 2001
Maxtor Corporation has announced its financial results for the first quarter ended March 31, 2001. Net income was US$1.3 million (US$0.01 per diluted share), compared with US$27.6 million (US$0.23 per diluted share), in the first quarter of 2000.
Revenue for the recent quarter was US$630.8 million, 8.7 per cent below revenue of US$691.3 million in the 2000 first quarter.
"We are pleased with Maxtor's first quarter performance, achieved during a very challenging period, not only for the hard disk drive industry, but for the technology sector as a whole," said Mike Cannon, President and CEO, Maxtor Corporation.
"Softening demand for PCs affected the demand for HDDs and made inventory management especially critical. Despite this environment, Maxtor shipped 6.7 million HDDs during the first quarter and achieved a gross profit margin of 14.1 per cent, largely the result of a favourable product mix and continued strong operational execution.
"Inventory was US$110 million at the end of March and cash and marketable securities totalled US$349 million at quarter-end.
"The strength of our HDD business was masked somewhat by our continued investments in building our network attached storage (NAS) business. In Q1 2001, Maxtor's NAS business generated revenue of US$4.3 million, delivering a net loss of US$12.2 million. These results partly reflected Maxtor's marketing strategy for transitioning to our new MaxAttach NAS 4100 introduced in early March.
"The MaxAttach NAS 4100 is a new, broadly interoperable and highly manageable NAS file server that is based on Microsoft Windows powered software that we believe better serves the storage needs of IT managers. The alliance with Microsoft has significantly enhanced the features and functionality of our NAS products.
"We believe NAS represents a significant growth and profit opportunity for Maxtor and remain committed to making the necessary investments to ensure our success in this emerging market."
On April 2, 2001, Maxtor completed its merger with Quantum Corporations HDD Group, a transaction that created the worlds largest HDD company in terms of units shipped in 2000 and a leader in the delivery of storage solutions and technology.
Combined revenues from Maxtor and Quantums HDD Group were approximately US$6 billion in 2000.
ENDS
BACKGROUND
Maxtor Corporation (www.maxtor.com) is one of the worlds leading suppliers of information storage solutions. The company has an expansive line of storage products for desktop computers, high-performance Intel-based servers, network attached storage and consumer electronics. Maxtor has a reputation as a proven market leader built by providing consistent high-quality products, and service and support for its customers. Maxtor and its products can be found at www.maxtor.com. Maxtor is traded on the NYSE under the MXO symbol.
ABN 72003641816
Revenue for the recent quarter was US$630.8 million, 8.7 per cent below revenue of US$691.3 million in the 2000 first quarter.
"We are pleased with Maxtor's first quarter performance, achieved during a very challenging period, not only for the hard disk drive industry, but for the technology sector as a whole," said Mike Cannon, President and CEO, Maxtor Corporation.
"Softening demand for PCs affected the demand for HDDs and made inventory management especially critical. Despite this environment, Maxtor shipped 6.7 million HDDs during the first quarter and achieved a gross profit margin of 14.1 per cent, largely the result of a favourable product mix and continued strong operational execution.
"Inventory was US$110 million at the end of March and cash and marketable securities totalled US$349 million at quarter-end.
"The strength of our HDD business was masked somewhat by our continued investments in building our network attached storage (NAS) business. In Q1 2001, Maxtor's NAS business generated revenue of US$4.3 million, delivering a net loss of US$12.2 million. These results partly reflected Maxtor's marketing strategy for transitioning to our new MaxAttach NAS 4100 introduced in early March.
"The MaxAttach NAS 4100 is a new, broadly interoperable and highly manageable NAS file server that is based on Microsoft Windows powered software that we believe better serves the storage needs of IT managers. The alliance with Microsoft has significantly enhanced the features and functionality of our NAS products.
"We believe NAS represents a significant growth and profit opportunity for Maxtor and remain committed to making the necessary investments to ensure our success in this emerging market."
On April 2, 2001, Maxtor completed its merger with Quantum Corporations HDD Group, a transaction that created the worlds largest HDD company in terms of units shipped in 2000 and a leader in the delivery of storage solutions and technology.
Combined revenues from Maxtor and Quantums HDD Group were approximately US$6 billion in 2000.
ENDS
BACKGROUND
Maxtor Corporation (www.maxtor.com) is one of the worlds leading suppliers of information storage solutions. The company has an expansive line of storage products for desktop computers, high-performance Intel-based servers, network attached storage and consumer electronics. Maxtor has a reputation as a proven market leader built by providing consistent high-quality products, and service and support for its customers. Maxtor and its products can be found at www.maxtor.com. Maxtor is traded on the NYSE under the MXO symbol.
ABN 72003641816