Advanced Digital Information Corporation, a storage solutions provider to the open systems marketplace, this week announced that sales grew 15.7 percent to nearly $85.0 million for the third quarter ended July 31, 2001, versus restated sales of $73.4 million for the same period a year ago.
Nevertheless, including one-time acquisition and legal settlement charges of $29.5 million, the Company lost $18.6 million in the quarter, or 30 cents per share. Excluding charges related to the acquisition of Pathlight Technology in May and the associated litigation settlement in June, pro forma earnings were approximately $2.8 million, or four cents per share. Excluding the effect of gains on an asset sale, restated Company earnings were $7.1 million, or 11 cents per share, during the third quarter of fiscal 2000.
Chairman and Chief Executive Officer Peter van Oppen said, "We are disappointed that a global economic slowdown has caused our customers to become increasingly cautious and yielded results lower than our originally anticipated sales and profit numbers. But, we believe ADIC continues to grow faster than its peers and are pleased to remain profitable, both on a pro forma operating and net income basis, despite the economic weakness."
Chief Operating Officer Chuck Stonecipher said, "We also expect to continue increasing our R&D expenditures so as to further solidify our position as a leader in Intelligent Storage Solutions. There is considerable evidence that the underlying demand for our products and technologies will continue to grow in the long term."
"Many companies are cutting back and absorbing substantial restructuring charges in this environment," said Chief Financial Officer Jon Gacek. "We are pleased that continued revenue growth, profitability and our balance sheet strength give us the opportunity to build our business in these challenging times so as to further enhance our strategic and competitive position. We also fully expect to remain profitable during this economic downturn and to return to more normal levels of profitability as the economy improves."