CNT Announces Preliminary First-Quarter Results

Projected Revenues Off 30% to 40%; Company Takes Cost-Reduction Actions to

Focus on Growth and Profitable Lines; Announces Authorization to Repurchase Up

To $50 Million of Stock



Live Webcast Scheduled for 4:30 p.m. Central Time, Today



Apr 24, 2001, 01:00 ET from Computer Network Technology

    MINNEAPOLIS, April 24 /PRNewswire Interactive News Release/ --
     CNT(R) (Nasdaq:   CMNT), the global specialist in storage networking, today
 announced preliminary results for its fiscal first quarter ending April 30,
 2001.  Due to current global economic conditions, CNT is experiencing a
 slowdown in customer information technology spending.  The company expects
 revenues and income per share to be lower than its guidance provided on
 February 1, 2001.
     CNT anticipates revenues for its first fiscal quarter to be 30 percent to
 40 percent lower than the $47 million reported in the fourth quarter of 2000.
 The company expects to report a loss per share from continuing operations,
 before any restructuring charges, in the range of $.05 to $.10 per share,
 compared with income per share from continuing operations of $.17 in the
 fourth quarter of 2000.  To bring costs in line with lower revenues, CNT plans
 to reduce its workforce in its storage networking and Propelis divisions by
 roughly 10 percent and will take a charge of approximately $3.0 million, or
 $.06 per share, stemming chiefly from the workforce reduction and the
 write-down of certain slow-moving inventory.
     "We are obviously disappointed with the effect current economic conditions
 are having on our customers' IT spending patterns.  The sudden and unexpected
 drop in our order pipeline provides no visibility to forecast demand," said
 Tom Hudson, chairman, president and chief executive officer of CNT.  "We are
 not seeing competitive losses but buying has slowed, decision making is much
 more prolonged, and we are seeing project delays.  As a result, we are taking
 immediate and decisive cost-reduction actions company wide.  When the economy
 turns up, we believe we are well positioned to succeed.  We have good products
 that meet a key need for accessing, moving, managing and protecting data
 assets in larger corporations.  We are the premier provider for integrating
 diverse technologies and vendors into scalable storage networks.  Long-term,
 we firmly believe in the storage networking, system integration and managed
 services opportunities.  We will continue to focus our engineering and
 development on growth markets, like our IP Storage solutions, mirroring
 solutions and managed services offerings."
 
     One-time Charge
     The company detailed the first-quarter one-time charge and its
 cost-control measures as follows:
     -- Workforce reduction -- CNT will reduce its workforce by approximately
        90 employees, or 10 percent worldwide.  The resultant charge will be
        approximately $700,000, or $.02 per share;
     -- Write-off of non-strategic product lines -- CNT will take a charge of
        approximately $300,000, or $.01 per share, related to the
        discontinuance of its Filespeed product;
     -- Increase in reserves for excess inventory -- To increase its reserves
        for slow-moving inventory, mostly Channelink components, CNT will take
        an additional charge of approximately $2.0 million, or $.04 per share;
     -- Elimination of most outside contract and temporary employees;
     -- Freeze on all wage increases;
     -- A 10 percent pay reduction for all executive management;
     -- A 5 percent pay reduction for all other personnel worldwide;
     -- Consolidation of facilities; and
     -- Cuts in discretionary expenses company wide.
 
     The company believes that its cost-cutting actions will reduce expenses by
 approximately $2.5 million per quarter.  "This layoff is a personally painful
 step for us but, unfortunately, a necessary one, given current conditions and
 the uncertain outlook.  The affected employees will receive severance and
 out-placement services," said Hudson.
     Because of the difficulty in forecasting during current economic
 conditions, CNT will not provide detailed guidance for the remainder of 2001
 until it sees signs of increased IT spending.
     Hudson said, "CNT is a leader in storage networking, with innovative
 products and services.  Going forward, we'll concentrate our efforts on
 providing customers with business solutions for consolidating storage
 management and reducing costs while building on our position as the storage
 networking expert."
 
     Stock Buyback
     CNT also announced its board of directors has authorized purchases by the
 company of up to $50 million of its outstanding common stock to be effected
 from time to time in transactions on the Nasdaq National Market or otherwise.
 Commenting on this announcement, Hudson said, "We believe the purchase of our
 stock represents a good use of resources.  CNT had cash and investments
 on-hand at year-end of approximately $150 million, which will allow us to
 maintain flexibility to fund our future business growth."  CNT has
 approximately 30 million shares of common stock outstanding.
 
     Webcast and Phone Replay Information
     CNT will hold a conference call at 4:30 p.m. today, Central Time, Tuesday,
 April 24, 2001.  The call can be accessed via CNT's Web site at
 http://www.cnt.com ; a replay of the call will be available on the Web site
 for two days, or anyone preferring to listen to a telephone replay can do so
 at 6:30 p.m. by dialing 888-568-0741.
 
     About CNT
     CNT is the global specialist in storage networking solutions. CNT's
 expertise lies in its ability to connect to different servers, systems, and
 platforms -- across any distance -- ensuring high performance and data
 integrity to drive superior business results for its customers.  For
 information, visit CNT's Web site at http://www.cnt.com or call 763-268-6000.
     Certain statements in this press release and in documents we have filed
 with the Securities and Exchange Commission, and oral statements made by or
 with the approval of our executive officers contain "forward-looking
 statements" under the Private Securities Litigation Reform Act of 1995.  These
 forward-looking statements may include statements about our anticipated
 receipt of orders and their impact on quarterly sales, business strategy,
 expectations regarding future revenue levels, gross margins, expenses,
 operating margins and earnings per share, timing of and plans for the
 introduction or phase-out of products or services, enhancements of existing
 products or services, plans for hiring additional personnel, entering into
 strategic partnerships, divestiture of the EIS subsidiary, ability to
 integrate new acquisitions with our existing businesses and other plans,
 objectives, expectations and intentions that are not historical fact.
     The words "may," "should," "expect," "plan," "anticipate," "believe,"
 "estimate," "predict," "intend," "potential" or "continue" and similar
 expressions are generally intended to identify forward-looking statements.
 These forward-looking statements involve risks and uncertainties. Actual
 results could differ materially from those expressed or implied by these
 forward-looking statements as a result of certain risk factors, including but
 not limited to (i) competitive factors, including pricing pressures, (ii)
 variability in quarterly sales, (iii) economic trends generally and in various
 geographic markets; (iv) relationships with our strategic partners; (v)
 unanticipated risks associated with introducing new products and features,
 including Propelis BPm(TM); (vi) technological change affecting our products
 and (vii) the financial performance of Propelis Software, Inc. prior to the
 proposed divestiture, (viii) our ability to integrate new acquisitions with
 our existing businesses and (ix) other events and other important factors
 disclosed previously and from time to time in our filings with the U.S.
 Securities and Exchange Commission. We assume no obligation to update any
 forward-looking statements. These statements are only predictions. Although we
 believe that the expectations reflected in the forward-looking statements are
 reasonable, we cannot guarantee future results, levels of activity,
 performance or achievements.
     All brand and product names are trademarks or registered trademarks of
 their respective companies.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87018555
 
 

SOURCE Computer Network Technology
    MINNEAPOLIS, April 24 /PRNewswire Interactive News Release/ --
     CNT(R) (Nasdaq:   CMNT), the global specialist in storage networking, today
 announced preliminary results for its fiscal first quarter ending April 30,
 2001.  Due to current global economic conditions, CNT is experiencing a
 slowdown in customer information technology spending.  The company expects
 revenues and income per share to be lower than its guidance provided on
 February 1, 2001.
     CNT anticipates revenues for its first fiscal quarter to be 30 percent to
 40 percent lower than the $47 million reported in the fourth quarter of 2000.
 The company expects to report a loss per share from continuing operations,
 before any restructuring charges, in the range of $.05 to $.10 per share,
 compared with income per share from continuing operations of $.17 in the
 fourth quarter of 2000.  To bring costs in line with lower revenues, CNT plans
 to reduce its workforce in its storage networking and Propelis divisions by
 roughly 10 percent and will take a charge of approximately $3.0 million, or
 $.06 per share, stemming chiefly from the workforce reduction and the
 write-down of certain slow-moving inventory.
     "We are obviously disappointed with the effect current economic conditions
 are having on our customers' IT spending patterns.  The sudden and unexpected
 drop in our order pipeline provides no visibility to forecast demand," said
 Tom Hudson, chairman, president and chief executive officer of CNT.  "We are
 not seeing competitive losses but buying has slowed, decision making is much
 more prolonged, and we are seeing project delays.  As a result, we are taking
 immediate and decisive cost-reduction actions company wide.  When the economy
 turns up, we believe we are well positioned to succeed.  We have good products
 that meet a key need for accessing, moving, managing and protecting data
 assets in larger corporations.  We are the premier provider for integrating
 diverse technologies and vendors into scalable storage networks.  Long-term,
 we firmly believe in the storage networking, system integration and managed
 services opportunities.  We will continue to focus our engineering and
 development on growth markets, like our IP Storage solutions, mirroring
 solutions and managed services offerings."
 
     One-time Charge
     The company detailed the first-quarter one-time charge and its
 cost-control measures as follows:
     -- Workforce reduction -- CNT will reduce its workforce by approximately
        90 employees, or 10 percent worldwide.  The resultant charge will be
        approximately $700,000, or $.02 per share;
     -- Write-off of non-strategic product lines -- CNT will take a charge of
        approximately $300,000, or $.01 per share, related to the
        discontinuance of its Filespeed product;
     -- Increase in reserves for excess inventory -- To increase its reserves
        for slow-moving inventory, mostly Channelink components, CNT will take
        an additional charge of approximately $2.0 million, or $.04 per share;
     -- Elimination of most outside contract and temporary employees;
     -- Freeze on all wage increases;
     -- A 10 percent pay reduction for all executive management;
     -- A 5 percent pay reduction for all other personnel worldwide;
     -- Consolidation of facilities; and
     -- Cuts in discretionary expenses company wide.
 
     The company believes that its cost-cutting actions will reduce expenses by
 approximately $2.5 million per quarter.  "This layoff is a personally painful
 step for us but, unfortunately, a necessary one, given current conditions and
 the uncertain outlook.  The affected employees will receive severance and
 out-placement services," said Hudson.
     Because of the difficulty in forecasting during current economic
 conditions, CNT will not provide detailed guidance for the remainder of 2001
 until it sees signs of increased IT spending.
     Hudson said, "CNT is a leader in storage networking, with innovative
 products and services.  Going forward, we'll concentrate our efforts on
 providing customers with business solutions for consolidating storage
 management and reducing costs while building on our position as the storage
 networking expert."
 
     Stock Buyback
     CNT also announced its board of directors has authorized purchases by the
 company of up to $50 million of its outstanding common stock to be effected
 from time to time in transactions on the Nasdaq National Market or otherwise.
 Commenting on this announcement, Hudson said, "We believe the purchase of our
 stock represents a good use of resources.  CNT had cash and investments
 on-hand at year-end of approximately $150 million, which will allow us to
 maintain flexibility to fund our future business growth."  CNT has
 approximately 30 million shares of common stock outstanding.
 
     Webcast and Phone Replay Information
     CNT will hold a conference call at 4:30 p.m. today, Central Time, Tuesday,
 April 24, 2001.  The call can be accessed via CNT's Web site at
 http://www.cnt.com ; a replay of the call will be available on the Web site
 for two days, or anyone preferring to listen to a telephone replay can do so
 at 6:30 p.m. by dialing 888-568-0741.
 
     About CNT
     CNT is the global specialist in storage networking solutions. CNT's
 expertise lies in its ability to connect to different servers, systems, and
 platforms -- across any distance -- ensuring high performance and data
 integrity to drive superior business results for its customers.  For
 information, visit CNT's Web site at http://www.cnt.com or call 763-268-6000.
     Certain statements in this press release and in documents we have filed
 with the Securities and Exchange Commission, and oral statements made by or
 with the approval of our executive officers contain "forward-looking
 statements" under the Private Securities Litigation Reform Act of 1995.  These
 forward-looking statements may include statements about our anticipated
 receipt of orders and their impact on quarterly sales, business strategy,
 expectations regarding future revenue levels, gross margins, expenses,
 operating margins and earnings per share, timing of and plans for the
 introduction or phase-out of products or services, enhancements of existing
 products or services, plans for hiring additional personnel, entering into
 strategic partnerships, divestiture of the EIS subsidiary, ability to
 integrate new acquisitions with our existing businesses and other plans,
 objectives, expectations and intentions that are not historical fact.
     The words "may," "should," "expect," "plan," "anticipate," "believe,"
 "estimate," "predict," "intend," "potential" or "continue" and similar
 expressions are generally intended to identify forward-looking statements.
 These forward-looking statements involve risks and uncertainties. Actual
 results could differ materially from those expressed or implied by these
 forward-looking statements as a result of certain risk factors, including but
 not limited to (i) competitive factors, including pricing pressures, (ii)
 variability in quarterly sales, (iii) economic trends generally and in various
 geographic markets; (iv) relationships with our strategic partners; (v)
 unanticipated risks associated with introducing new products and features,
 including Propelis BPm(TM); (vi) technological change affecting our products
 and (vii) the financial performance of Propelis Software, Inc. prior to the
 proposed divestiture, (viii) our ability to integrate new acquisitions with
 our existing businesses and (ix) other events and other important factors
 disclosed previously and from time to time in our filings with the U.S.
 Securities and Exchange Commission. We assume no obligation to update any
 forward-looking statements. These statements are only predictions. Although we
 believe that the expectations reflected in the forward-looking statements are
 reasonable, we cannot guarantee future results, levels of activity,
 performance or achievements.
     All brand and product names are trademarks or registered trademarks of
 their respective companies.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87018555
 
 SOURCE  Computer Network Technology