MTI Technology Corp. , a provider of enterprise storage solutions, today announced financial results for its fiscal 2002 first quarter ended July 7, 2001.
For the fiscal 2002 first quarter ended July 7, 2001, MTI reported total revenue of $29.8 million, compared to $37.9 million for the fiscal first quarter last year and $34.2 million for the fourth quarter of fiscal 2001. Net product revenue for the first quarter 2002 was $17.3 million, compared to $25.4 million in the year ago period and $22.1 million in the immediately preceding quarter. Service revenue for the first quarter 2002 was $12.6 million, compared to $12.5 million in the year ago period and $12.0 million in the fourth quarter of fiscal 2001. Gross profit margin for the first quarter 2002 was 18.0% compared to 32.2% in the same period last year and 33.6% for the fourth quarter of fiscal 2001. The Company recorded non-cash inventory adjustments of approximately $4.2 million for the quarter. Before giving effect to these adjustments, gross profit margin was 32.2%. Gross profit margin also was affected by lower operating efficiencies as a result of lower production volumes as well as changes in product mix.
An analysis of the Company's deferred-tax asset considered various factors, one of which was the continued decline in the Company's holding of Caldera stock. Another major factor was increased softness in the American and European markets for MTI's products. This resulted in posting a non-cash valuation allowance against the remaining $24.3 million net value of the deferred-tax asset. Therefore, the Company reported a net loss for the fiscal 2002 first quarter of $36.5 million, or $1.13 per diluted share, compared to a net loss of $8.7 million, or $0.27 per diluted share, in the first quarter of fiscal 2001. Before giving effect to the aforementioned valuation allowance, non-cash inventory adjustments and other non-operating expenses, the Company had an operating loss of $6.3 million for the fiscal 2002 first quarter.
As of quarter end on July 7, 2001, the Company had $13.3 million in cash and cash equivalents, no long-term bank borrowings, and $16.2 million of working capital.