Exabyte Announces First Quarter Results
Apr 17, 2001, 01:00 ET from Exabyte Corporation
BOULDER, Colo., April 17 /PRNewswire/ -- Exabyte Corporation
(Nasdaq: EXBT), a performance leader in network backup systems, today reported
revenue for the first quarter of 2001 of $49,052,000 compared to $49,576,000
for the first quarter of 2000. The net loss for the first quarter of 2001 was
$17,550,000 or $0.77 per share compared to a net loss of $13,580,000 or
$0.60 per share for the first quarter of 2000.
Included in the net loss for the first quarter of 2001 were severance
costs of approximately $500,000 related to the March 16th reduction in force
and approximately $2,800,000 of reserves for inventory writedowns and rework
charges related to efforts to improve the quality and manufacturing yields of
the M2(TM) drive product.
"We were gratified that the domestic distribution sell-through of
Exabyte's products held up well in the face of a weakening U.S. economy and
slower capital spending, actually increasing 3% from the level of the fourth
quarter of 2000," commented Bill Marriner, Exabyte's chairman, president and
chief executive officer. "Our distributors significantly reduced inventories
during this challenging period, adversely impacting our Q1 sales. Their
inventories are now in excellent shape and both sell-through and re-order
activity are off to a good start in Q2."
"A second factor which impacted sales was the fact that the demand for M2
media had outpaced our ability to supply for several months ending in
February. We were able, however, to ship record levels of media in the month
of March and significantly reduced the outstanding order backlog from our
customers. With media now available in quantity at all of our major
distributors, we believe sales of M2 drives and libraries will begin to
improve," said Marriner.
"The gross margin for the quarter of 7% was unusually low due to the
impact of the inventory and rework charges (approximately six margin points)
and high fixed costs relative to the revenue level for the quarter. Operating
expenses, both SG&A and research and development, were down significantly from
the year-ago levels. The recent reduction in force is expected to result in
approximately $20 million of annual savings and we expect significant
improvement in the gross margin and reductions in operating expenses as a
result beginning in Q2. With these expense reductions, recent improvements in
M2 production yields and costs, the planned introduction of several new
library products in the next six months, and the continuing transfer of
production offshore, we expect to post significantly improved bottom line
results," stated Marriner.
"In the announcement of fourth quarter 2000 results on February 2, 2001,
we indicated that a number of actions were being explored in order to improve
the company's liquidity. With the announcement today of a $3 million
preferred equity financing from the State of Wisconsin Investment Board, I am
pleased with the progress that we have had in these efforts. We have
restructured the operations of the company, converted our ownership in
Highground Systems to common stock of Sun Microsystems, increased our bank
line of credit by $5 million, and issued preferred equity to a longtime
Exabyte shareholder as we continue to explore strategic alliance, acquisition
or merger opportunities," stated Marriner.
On April 2, 2001, the company reported that its annual report on Form 10-K
for the fiscal year ended December 30, 2000 would be filed late in order to
permit the company time to review and respond to comments received from the
SEC staff on prior reports incorporated into an S-3 registration statement.
The company is engaged in continuing discussions with the SEC staff concerning
these comments, including comments relating to the timing of the company's
write-off of deferred tax assets. The company's previously reported
preliminary results for fiscal 2000 included the write-off of these assets
during the fourth quarter. The company is considering the write-off of these
deferred tax assets in one or more earlier periods in response to comments
received from the SEC staff. Any such change in the timing of the write-off
would have no impact on the company's balance sheets as of December 30, 2000
or March 31, 2001. Because of the time required to adequately address these
comments, the company has not filed its 2000 10-K during the permitted
extension period.
About Exabyte Corporation
Exabyte Corporation is a leading supplier of tape storage devices and
network storage solutions for the data intensive application and database
server markets. Exabyte engineers, manufactures and markets 8mm and
MammothTape(TM) technology tape drives, premier storage media and libraries
for MammothTape, DLTtape(TM) and LTO(TM) (Ultrium) tape technologies.
NetStorM(TM), Exabyte's network storage initiative, is designed to optimize
the performance capabilities of Exabyte's drives, autoloaders and libraries
with other vendors' SAN offerings. The Company's products are available
exclusively through an extensive network of OEM, distributor and reseller
business partners worldwide, all backed by the Company's award-winning service
and support.
For additional information about Exabyte and for sales, call
1-800-EXABYTE. For support and customer service, call 1-800-445-7736. Please
call (+65)-271-6331 for Asia/Pacific and (+31)-30-2548800 for European
inquiries. To have investor information faxed, call 201-946-0091, or download
information from the investor relations' room on the Company's Web site. For
investor-related questions, please call 1-888-EXABYTE, or e-mail
investor@exabyte.com. Visit Exabyte on the World Wide Web at www.exabyte.com
and www.m2wins.com.
The foregoing includes forward-looking statements related to the company's
business prospects. Such statements are subject to one or more risks. Words
such as "believes," "anticipates," "expects," "intends," "plans," "positions"
and similar expressions are intended to identify forward-looking statements,
but are not the exclusive means of identifying such statements. The actual
results that the company achieves may differ materially from such
forward-looking statements due to risks and uncertainties related to equity
and financing arrangements, media availability and dependence, M2(TM)
dependence, product development, manufacturing, market demand, management of
business and product transitions and other such risks as noted in the
company's 1999 Form 10-K and Form 10-Q for the quarter ending September 30,
2000. Please refer to the company's Form 8-K, Form 10-K and Forms 10-Q for a
description of such risks.
EDITOR'S NOTES Exabyte is a registered trademark, and M2, MammothTape,
SmartClean and NetStorM are trademarks of Exabyte Corp. LTO and Ultrium are US
trademarks of HP, IBM and Seagate. DLTtape is a trademark of Quantum Corp.
All other trademarks are the property of their respective owners.
EXABYTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31, April 1,
2001 2000
Net sales $49,052 $49,576
Cost of sales 45,558 39,363
Gross profit 3,494 10,213
Operating expenses:
Selling, general and administrative 11,333 13,436
Research and development 8,901 10,360
Loss from operations (16,740) (13,583)
Other income (expense), net (460) 45
Loss before income taxes (17,200) (13,538)
Provision for income taxes (7) (42)
Equity in loss of investee (343) --
Net loss ($17,550) ($13,580)
Basic:
Net loss per share ($0.77) ($0.60)
Weighted average number of
common shares outstanding 22,779 22,454
Diluted:
Net loss per share ($0.77) ($0.60)
Weighted average number of
common and potential common
shares outstanding 22,779 22,454
EXABYTE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
ASSETS
March 31, December 30,
2001 2000
Current assets:
Cash and investments $2,843 $3,249
Accounts receivable, net 29,153 37,412
Inventories 39,588 40,143
Other current assets 2,208 2,807
Total current assets 73,792 83,611
Property and equipment, net 17,154 18,754
Other assets 998 1,427
$91,944 $103,792
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $32,138 $26,944
Accruals and other liabilities 14,137 17,337
Line of credit 14,544 12,307
Total current liabilities 60,819 56,588
Long-term liabilities 9,617 8,146
Stockholders' equity:
Common stock 23 23
Capital in excess of par value 69,154 69,154
Treasury stock, at cost (2,742) (2,742)
Retained earnings (44,927) (27,377)
Total stockholders' equity 21,508 39,058
$91,944 $103,792
SOURCE Exabyte Corporation
BOULDER, Colo., April 17 /PRNewswire/ -- Exabyte Corporation
(Nasdaq: EXBT), a performance leader in network backup systems, today reported
revenue for the first quarter of 2001 of $49,052,000 compared to $49,576,000
for the first quarter of 2000. The net loss for the first quarter of 2001 was
$17,550,000 or $0.77 per share compared to a net loss of $13,580,000 or
$0.60 per share for the first quarter of 2000.
Included in the net loss for the first quarter of 2001 were severance
costs of approximately $500,000 related to the March 16th reduction in force
and approximately $2,800,000 of reserves for inventory writedowns and rework
charges related to efforts to improve the quality and manufacturing yields of
the M2(TM) drive product.
"We were gratified that the domestic distribution sell-through of
Exabyte's products held up well in the face of a weakening U.S. economy and
slower capital spending, actually increasing 3% from the level of the fourth
quarter of 2000," commented Bill Marriner, Exabyte's chairman, president and
chief executive officer. "Our distributors significantly reduced inventories
during this challenging period, adversely impacting our Q1 sales. Their
inventories are now in excellent shape and both sell-through and re-order
activity are off to a good start in Q2."
"A second factor which impacted sales was the fact that the demand for M2
media had outpaced our ability to supply for several months ending in
February. We were able, however, to ship record levels of media in the month
of March and significantly reduced the outstanding order backlog from our
customers. With media now available in quantity at all of our major
distributors, we believe sales of M2 drives and libraries will begin to
improve," said Marriner.
"The gross margin for the quarter of 7% was unusually low due to the
impact of the inventory and rework charges (approximately six margin points)
and high fixed costs relative to the revenue level for the quarter. Operating
expenses, both SG&A and research and development, were down significantly from
the year-ago levels. The recent reduction in force is expected to result in
approximately $20 million of annual savings and we expect significant
improvement in the gross margin and reductions in operating expenses as a
result beginning in Q2. With these expense reductions, recent improvements in
M2 production yields and costs, the planned introduction of several new
library products in the next six months, and the continuing transfer of
production offshore, we expect to post significantly improved bottom line
results," stated Marriner.
"In the announcement of fourth quarter 2000 results on February 2, 2001,
we indicated that a number of actions were being explored in order to improve
the company's liquidity. With the announcement today of a $3 million
preferred equity financing from the State of Wisconsin Investment Board, I am
pleased with the progress that we have had in these efforts. We have
restructured the operations of the company, converted our ownership in
Highground Systems to common stock of Sun Microsystems, increased our bank
line of credit by $5 million, and issued preferred equity to a longtime
Exabyte shareholder as we continue to explore strategic alliance, acquisition
or merger opportunities," stated Marriner.
On April 2, 2001, the company reported that its annual report on Form 10-K
for the fiscal year ended December 30, 2000 would be filed late in order to
permit the company time to review and respond to comments received from the
SEC staff on prior reports incorporated into an S-3 registration statement.
The company is engaged in continuing discussions with the SEC staff concerning
these comments, including comments relating to the timing of the company's
write-off of deferred tax assets. The company's previously reported
preliminary results for fiscal 2000 included the write-off of these assets
during the fourth quarter. The company is considering the write-off of these
deferred tax assets in one or more earlier periods in response to comments
received from the SEC staff. Any such change in the timing of the write-off
would have no impact on the company's balance sheets as of December 30, 2000
or March 31, 2001. Because of the time required to adequately address these
comments, the company has not filed its 2000 10-K during the permitted
extension period.
About Exabyte Corporation
Exabyte Corporation is a leading supplier of tape storage devices and
network storage solutions for the data intensive application and database
server markets. Exabyte engineers, manufactures and markets 8mm and
MammothTape(TM) technology tape drives, premier storage media and libraries
for MammothTape, DLTtape(TM) and LTO(TM) (Ultrium) tape technologies.
NetStorM(TM), Exabyte's network storage initiative, is designed to optimize
the performance capabilities of Exabyte's drives, autoloaders and libraries
with other vendors' SAN offerings. The Company's products are available
exclusively through an extensive network of OEM, distributor and reseller
business partners worldwide, all backed by the Company's award-winning service
and support.
For additional information about Exabyte and for sales, call
1-800-EXABYTE. For support and customer service, call 1-800-445-7736. Please
call (+65)-271-6331 for Asia/Pacific and (+31)-30-2548800 for European
inquiries. To have investor information faxed, call 201-946-0091, or download
information from the investor relations' room on the Company's Web site. For
investor-related questions, please call 1-888-EXABYTE, or e-mail
investor@exabyte.com. Visit Exabyte on the World Wide Web at www.exabyte.com
and www.m2wins.com.
The foregoing includes forward-looking statements related to the company's
business prospects. Such statements are subject to one or more risks. Words
such as "believes," "anticipates," "expects," "intends," "plans," "positions"
and similar expressions are intended to identify forward-looking statements,
but are not the exclusive means of identifying such statements. The actual
results that the company achieves may differ materially from such
forward-looking statements due to risks and uncertainties related to equity
and financing arrangements, media availability and dependence, M2(TM)
dependence, product development, manufacturing, market demand, management of
business and product transitions and other such risks as noted in the
company's 1999 Form 10-K and Form 10-Q for the quarter ending September 30,
2000. Please refer to the company's Form 8-K, Form 10-K and Forms 10-Q for a
description of such risks.
EDITOR'S NOTES Exabyte is a registered trademark, and M2, MammothTape,
SmartClean and NetStorM are trademarks of Exabyte Corp. LTO and Ultrium are US
trademarks of HP, IBM and Seagate. DLTtape is a trademark of Quantum Corp.
All other trademarks are the property of their respective owners.
EXABYTE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31, April 1,
2001 2000
Net sales $49,052 $49,576
Cost of sales 45,558 39,363
Gross profit 3,494 10,213
Operating expenses:
Selling, general and administrative 11,333 13,436
Research and development 8,901 10,360
Loss from operations (16,740) (13,583)
Other income (expense), net (460) 45
Loss before income taxes (17,200) (13,538)
Provision for income taxes (7) (42)
Equity in loss of investee (343) --
Net loss ($17,550) ($13,580)
Basic:
Net loss per share ($0.77) ($0.60)
Weighted average number of
common shares outstanding 22,779 22,454
Diluted:
Net loss per share ($0.77) ($0.60)
Weighted average number of
common and potential common
shares outstanding 22,779 22,454
EXABYTE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands)
ASSETS
March 31, December 30,
2001 2000
Current assets:
Cash and investments $2,843 $3,249
Accounts receivable, net 29,153 37,412
Inventories 39,588 40,143
Other current assets 2,208 2,807
Total current assets 73,792 83,611
Property and equipment, net 17,154 18,754
Other assets 998 1,427
$91,944 $103,792
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $32,138 $26,944
Accruals and other liabilities 14,137 17,337
Line of credit 14,544 12,307
Total current liabilities 60,819 56,588
Long-term liabilities 9,617 8,146
Stockholders' equity:
Common stock 23 23
Capital in excess of par value 69,154 69,154
Treasury stock, at cost (2,742) (2,742)
Retained earnings (44,927) (27,377)
Total stockholders' equity 21,508 39,058
$91,944 $103,792
SOURCE Exabyte Corporation
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