LOUISVILLE, Colo., April 20, 2004 - StorageTek® (Storage Technology Corp., NYSE:STK) today announced first quarter 2004 net income of $23.3 million, or $0.21 diluted earnings per share. These amounts compare to net income of $16.5 million, or $0.15 diluted earnings per share, for the first quarter of 2003. Revenue for the first quarter of 2004 was $515 million compared to $480 million for the first quarter of 2003. The effective tax rate for the first quarter of 2004 was approximately 22%, and StorageTek currently expects that rate to be in effect for the full year. The previously anticipated effective tax rate for 2004 was approximately 28%.
"We are pleased to have delivered a solid quarter both in revenue generation and earnings growth," said Patrick J. Martin, StorageTek chairman, president and chief executive officer. "We are optimistic that the IT spending environment appears to be strengthening as the year progresses, and our strategy and the value-add we bring through our Information Lifecycle Management offerings are clearly resonating with customers."
First quarter 2004 revenue for storage services grew 11% over the same period last year. "We saw double-digit growth in our maintenance revenue as well as our professional services," continued Martin. "Our customers look to our professional services as a key enabler and crucial component required to successfully integrate an Information Lifecycle Management solution."
Financial highlights for the first quarter includes an increased cash and investments balance of $1.07 billion and cash flow from operations of $70 million. "Our financial disciplines have become a hallmark of our business philosophy," said Robert S. Kocol, StorageTek's chief financial officer. "At this point we are on track to deliver the results we anticipated as we entered 2004. Even without the benefit of a lower-than-anticipated tax rate, we still grew earnings by over 25 percent."
StorageTek will conduct the first quarter 2004 financial results conference call today at 5:00 p.m. EDT. Please join us for a live audio webcast.
If you prefer to join via telephone line, please dial 800.314.7867 at least 5 minutes prior to the start of the call. International participants should dial 719.867.0640.
A replay of the call will be available on the web. The replay will also be available beginning at 8 p.m. EDT today and run through midnight Friday, April 30, by dialing 888.203.1112. If calling internationally, dial 719.457.0820. Use pass code 404088.
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.
For more information please contact:
Tel +44 (0)207 413 3193