Net income for the full year 2003 was $148.9 million, or $1.35 diluted earnings per share, compared to $110.0 million, or $1.02 diluted earnings per share for 2002. Revenue for the full year 2003 was $2.18 billion compared to $2.04 billion for 2002.
Net income for the fourth quarter of 2003 and for the full year 2003 includes a tax benefit of $5.5 million, or $0.05 per diluted share, from the favorable resolution during the fourth quarter of 2003 of prior year tax matters. Net income for the fourth quarter of 2002 and for the full year 2002 includes a tax benefit of $10.5 million, or $0.10 per diluted share, from the favorable resolution during the fourth quarter of 2002 of prior year tax matters.
Patrick Martin, StorageTek chairman, president and chief executive officer, said: "We are extremely pleased with the revenue improvement and earnings growth we experienced in the fourth quarter and full year. StorageTek has now produced six quarters of year-over-year revenue growth and fourteen quarters of year-over-year earnings growth. StorageTek has delivered consistent and substantial results. We've done it despite living through one of the most brutal IT contractions in recent history."
"This quarter, revenue from our Automated Tape Solutions increased 18 percent over fourth quarter last year and over 40 percent from third quarter 2003. Storage services revenue reached a record level this quarter and achieved double-digit growth for the full year," said Martin. "During these difficult times, StorageTek has invested in channels, customers and our technology which clearly paid off in the fourth quarter and throughout 2003. We believe we are seeing a strong economic recovery and we are excited about 2004 and beyond."
Financial highlights for the quarter include a balance of cash and investments of $1.06 billion, quarterly cash flow from operations of over $110 million and full year 2003 cash flow from operations of over $360 million. "Throughout the year we improved productivity, maintained strong cost controls, adhered to solid asset management disciplines and produced healthy cash flow," said Robert Kocol, StorageTek's chief financial officer. "With our financial stability and flexibility, we are firmly positioned to exploit the imminent rebound in our industry."
StorageTek will conduct the fourth quarter and full year 2003 financial results conference call today at 5:00 p.m. EST. Please join us for a live audio webcast at storagetek web site. If you prefer to join via telephone line, please dial 800.810.0924 at least 5 minutes prior to the start of the call. International participants should dial 913.981.4900.
A replay of the call will be available on the web. The replay via phone line will be available beginning at 8 p.m. EST today and running through midnight Friday, Jan. 30, by dialing 888.203.1112. If calling internationally, dial 719.457.0820. Use pass code 716921.
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 "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(tm) 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 call 1.800.786.7835.