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2001, October week 4b, news archive

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LAKE FOREST, Calif.-Oct. 25, 2001- Western Digital Corp. (NYSE: WDC) today reported revenue of $440.9 million and a loss from continuing operations of $4.0 million, for its first fiscal quarter ended September 28, 2001. These results include an operating profit from the Company's hard drive group of $4.0 million, and losses from continuing new ventures of $7.3 million. The Company shipped 5.4 million units in the quarter. In the year earlier period, Western Digital reported revenue of $424.4 million and a loss from continuing operations of $37.2 million, or $.25 per share, on unit shipments of 5.1 million.

Also in the current period, the Company reported a gain from disposal of its discontinued Connex and SANavigator businesses of $24.5 million. Including this gain, the Company reported net earnings of $20.5 million.

Matt Massengill, president and chief executive officer, said: "Our operating performance continues to reflect product cost efficiencies and the strength of our position with leading PC OEM and distribution customers. We have achieved this through leading quality and predictable supply of the technology they require in high volumes. In addition, we began to see the benefits of the emerging markets for rotating magnetic storage with initial shipments of WD drives to Microsoft for its new Xbox gaming system.

"Our hard drive business has been profitable for four consecutive quarters, a period that many regard as one the most challenging in the industry's history," said Massengill. "We have modeled our business to weather these times and to be in good position to deliver solid returns as the market recovers in the future. Reflecting continued improvement of our balance sheet, cash grew to $200 million in the first quarter, which included $35 million from the sale of our Connex and SANavigator businesses. The hard drive business itself generated $14 million in cash from operations." ...Western Digital profile

IRVINE, Calif., October 24, 2001 – Quest Software, Inc. (Nasdaq: QSFT), a leading provider of application management solutions, today announced financial results for its third quarter ended September 30, 2001. Third quarter revenues were $56.3 million, pro forma operating income was $0.1 million and pro forma net income was $1.7 million.

"Third quarter financial results reflected the compound affect of continued slow IT spending in 2001 and disruption from the September 11 terrorist attacks on the United States," said Vinny Smith, chairman and CEO. "Despite the license revenue shortfall, we had good net cash generation in the quarter and maintained our balance sheet strength. Quest remains very well positioned competitively and I am particularly excited about our product cycle over the next several quarters." For the third quarter of 2001, on an as reported basis, Quest Software reported a net loss of $10.8 million or $(0.12) per share, compared with a net loss of $6.3 million or $(0.07) per share for the third quarter of 2000. ...Quest Software profile

Editor's comments:- even as early as April this year it was clear that the IT market in the US was fragmenting into 2 markets. A high growth segment, which is still seeing double digit year on year revenue growth, and the rest, that is - the recessionary segment. If you look at some of the market research reports which we've mentioned in these news pages recently your head can easily get into a spin because it seems like different research companies are looking at the same data and coming to different conclusions. But when you look closer, you'll see that the storage market is in 2 parts also... Companies involved in the high growth segments like SRM software, tape libraries etc can seemingly do no wrong, while companies in the worst affected segment - memory - are struggling for survival. That reflects what users really need, and can't do without.

ROCKVILLE, MARYLAND - October 24, 2001 - OTG Software, Inc. (Nasdaq:OTGS) today announced financial results, including record revenues for its third quarter ended September 30, 2001. Total consolidated revenues for the third quarter were $16.6 million, representing a 4% sequential increase over second quarter 2001 revenue of $15.9 million, and an increase of 15% over third quarter 2000 consolidated results of $14.4 million.

On a consolidated pro forma basis, excluding certain merger related expenses and the amortization of certain acquired assets, the net loss for the third quarter was $489,000, or ($0.01) per share, compared with a profit of $2.8 million, or $0.09 per share on a fully diluted basis, for the same period last year.

For the nine-month period ending September 30, 2001, OTG had consolidated total revenue of $46.4 million, a 25% increase over the nine-month period of 2000 of $37.2 million. On a consolidated pro forma basis, excluding certain merger related expenses and the amortization of certain acquired assets, the net loss for the nine-month period was $879,000, or ($0.03) per share, compared with a profit of $3.8 million, or $0.13 per share on a fully diluted basis, for the same period last year.

"OTG delivered record revenue results despite the difficult market conditions. We continued to execute on our proven strategy to deliver growth," stated Richard Kay, Chairman and CEO of OTG Software. "Fundamentally, our growth is driven by our ability to sell from the department level to the enterprise level, our strong sales channel, and our proven solutions that better access, manage and protect data with a measurable return on investment. We continue to add new products, new partners, tap new markets and win new customers. In particular, this quarter we continued our penetration of the UNIX space by offering petabyte scalability for our data access and virtualization solutions." ...OTG Software profile

Emeryville, Calif., - Oct 24, 2001 - A newly released Q3 2001 study by Techtel, a leading market research firm which tracks demand for information technology solutions, reports unexpectedly stable overall demand for hardware technology, despite events since September 11. At the same time, there have been significant changes in index components, causing changes in expected demand for many companies. According to the study, overall hardware demand has remained flat for the third quarter in a row, after a 14% decline in Q4 2000. Only modest changes in overall purchase levels and consideration were observed in Q3 compared to Q2.

"Remarkably, IT hardware demand is holding flat. The terrorist attacks have not sent demand spiraling downwards, as might be thought," said Michael Kelly, Chairman and Chief Architect of Techtel Corporation. "We are living in a world of overall flat demand now, and I expect real demand to remain flat over the next two quarters."

"Looking forward, we expect no improvement to the enterprise categories in the next quarter or two, and some further deterioration may take place. Countering this, we expect the general business categories to continue improving," Kelly added. "At the company level, we expect hardware companies such as Dell to do well in the PC and notebook space, IBM in high end storage Shark, IBM in high end servers with RS/6000, Compaq and Dell in low end servers, and Brocade in SAN switches, all should do better than their competitors. However, Sun and EMC, among others, will continue to have downward pressures, as much from the economy and competitor pressures, as from terrorists attacks." Kelly added. ...Techtel profile

Cambridge, Mass - October 23, 2001 - Avaki Corporation today announced a $10 million second closing of its series A financing by Polaris Venture Partners, General Catalyst and Sofinnova. This brings the overall company investment to $16 million, led by Polaris Venture Partners. AVAKI closed the first round of $6 million in June 2001. AVAKI also announced today the charter availability of AVAKI 2.0, and the formation of a Technical Advisory Board.

AVAKI will use the funds for product development and marketing of their innovative AVAKI 2.0 product, which makes resources available for large-scale computing by allowing heterogeneous networks to function as a single environment. This innovative solution allows enterprises to capitalize on the true power of grid computing and thereby accelerate time to market, increase ROI on existing computing infrastructure and reduce the barriers associated with implementing Web Services. The product, in development for seven years at the University of Virginia, unifies multiple work platforms in multiple locations, extending robust and secure enterprise capabilities to the edge of the Internet. Services."...Avaki profile

Financial Technology Expo, New York, N.Y., October 23, 2001 – With disaster recovery solutions top-of-mind to many financial institutions, EVault today unveiled a service that will provide banks with efficient, effective and tapeless backup solutions. EVault has made its technology available to financial institutions, ensuring that banks can electronically protect their heterogeneous back office data across the organization - including each regional branch - from one central location.

Sensitive customer data is a hallmark of the financial industry, and financial institutions cannot afford to lose any of it. According to Contingency Planning Research & Strategic Research Corp., computer data loss costs the banking industry a staggering $17,093 an hour. Traditionally, banks have protected their data through costly and time-consuming tape-based data backup. Now EVault is helping bank IT managers coordinate data backup more efficiently by allowing them to forgo "tape-to-truck" data backup through the use of EVault's online solution. This system allows banks to store critical data in secure off-site "vaults" while ensuring that data is readily available for rapid recovery. Each night, EVault automatically and securely backs up data on the bank's servers, both in regional branches as well as the home office. This makes it easy for IT managers to oversee backup throughout the entire organization, making data quickly accessible and eliminating the need for harder-to-manage tape solutions.

The process of tape-based backup can be extremely frustrating and time-consuming for banks, which maintain mountains of customer data. The actual transportation of tapes to off-site locations takes time and money, and finding backed-up data can be a painful process for IT managers. EVault eliminates these problems by providing them with the ability to backup large volumes of data and access it via an intuitive online UI.

"Before using EVault, my backup medium was tape," said Stephen Fenske, chief information officer, Decision Analytics, an investment banking firm. "I found that method to be archaic when set next to EVault's solution for two reasons. One, when conducting a restore via tape, you must first locate the tape that contains the desired files, and then scan the tape for the proper session. This location process alone is accelerated markedly with EVault's solution. Second, EVault's solution offers more portability during disaster recovery. EVault allows me to restore from any machine, regardless of location."

Once installed in a client's back office, EVault agents "wake up" each night and retrieve daily block-level server changes from each protected server, compress and encrypt those changes, then transfer them over IP to electronic vaults in secure, remote data centers. This automated and proven solution produces generations of backups that are reliable, secure and highly available. EVault currently protects servers running Windows 98/ME/NT/2000, Novell NetWare, Sun Solaris, and Red Hat Linux, and will soon release support for Windows XP, IBM AIX and HP/UX. ...eVault profile

Other news on this page

Western Digital Reports $4 Million Profit in HDD Business On Revenue of $441 Million, Unit Shipments of 5.4 Million

Quest Software Reports Third Quarter Results

OTG Software Announces Third Quarter Results; Record Revenues and Continuing Growth

Techtel Demand Study Reveals Unexpected Stability Overall in IT Hardware Demand, Despite Events Since September 11

Avaki Corporation Closes $16 Million in Funding From Polaris Venture Partners, General Catalyst and Sofinnova

EVault Announces Online Disaster Recovery and Data Backup Solution for Banks

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