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Quantum posts strong earnings amid future warnings

Quantum posts strong earnings amid future warnings

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Quantum DLT and Storage Systems has posted $US32 million, or $0.20 per diluted share in Q4 net income for 2001, wading against the tide of economic turndown.

Revenue for the quarter was $US309 million putting the company's full year net income at $167 million and revenue at $1.4 billion.

"Storage solutions revenue contributed by our Enterprise Solutions (ATL) and Snap Appliances businesses totalled a record $413 million in fiscal 2001, a 28 per cent increase over the prior fiscal year," said Michael Brown, Quantum chairman and CEO. These two businesses segments account for 29 per cent of total DSS revenue. The remainder is made up by Quantum's DLTtape Group which sells tape drive media. Sales in this segment continued to provide a stable source of profit and cash with direct sales and royalty income reaching $83 million for fiscal Q4 2001.

The company expects to feel more of a pinch in the 2002 fiscal year, which will be reflected as early as Q1 results.

"We expect revenue to be down slightly on a sequential basis due to a decline in DLTtape drive revenue, with storage solutions revenue remaining relatively flat," said Brown.

Ongoing operating expenses, excluding transition and non-recurring items will also be relatively flat. Earnings will be affected by two new factors, the increased share count resulting from the Maxtor transaction which took place in April and the goodwill amortisation from the M4 Data acquisition in February.


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