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StorageTek Announces Fourth Quarter And Full Year Financial Results

  • 23 January, 2004 11:02

<p>~ Record Fourth Quarter Revenue for Storage Services ~</p>
<p>SYDNEY, Australia, January 23, 2004 -- StorageTek (Storage Technology Corp., NYSE:STK) today announced fourth quarter 2003 net income of US$71.3 million, or US$0.64 diluted earnings per share. These amounts compare to net income for the fourth quarter of 2002 of US$61.1 million, or US$0.57 diluted earnings per share. Revenue for the fourth quarter of 2003 was US$655.1 million compared to US$590.1 million for the fourth quarter of 2002.</p>
<p>Net income for the full year 2003 was US$148.9 million, or US$1.35 diluted earnings per share, compared to US$110.0 million, or US$1.02 diluted earnings per share for 2002. Revenue for the full year 2003 was US$2.18 billion compared to US$2.04 billion for 2002.</p>
<p>Net income for the fourth quarter of 2003 and for the full year 2003 includes a tax benefit of US$5.5 million, or US$0.05 per diluted share, from the favorable resolution during the fourth quarter of 2003 of prior year tax matters. Net income for the fourth quarter of 2002 and for the full year 2002 includes a tax benefit of US$10.5 million, or US$0.10 per diluted share, from the favorable resolution during the fourth quarter of 2002 of prior year tax matters.</p>
<p>Patrick Martin, StorageTek chairman, president and chief executive officer, said: "We are extremely pleased with the revenue improvement and earnings growth we experienced in the fourth quarter and full year. StorageTek has now produced six quarters of year-over-year revenue growth and fourteen quarters of year-over-year earnings growth. StorageTek has delivered consistent and substantial results. We've done it despite living through one of the most brutal IT contractions in recent history."</p>
<p>"This quarter, revenue from our Automated Tape Solutions increased 18 percent over fourth quarter last year and over 40 percent from third quarter 2003. Storage services revenue reached a record level this quarter and achieved double-digit growth for the full year," said Martin. "During these difficult times, StorageTek has invested in channels, customers and our technology which clearly paid off in the fourth quarter and throughout 2003. We believe we are seeing a strong economic recovery and we are excited about 2004 and beyond."</p>
<p>Financial highlights for the quarter include a balance of cash and investments of US$1.06 billion, quarterly cash flow from operations of over US$110 million and full year 2003 cash flow from operations of over US$360 million. "Throughout the year we improved productivity, maintained strong cost controls, adhered to solid asset management disciplines and produced healthy cash flow," said Robert Kocol, StorageTek's chief financial officer. "With our financial stability and flexibility, we are firmly positioned to exploit the imminent rebound in our industry."</p>
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<p>Certain statements, projections and forecasts contained herein regarding StorageTek's future performance and financial results, future products, and business plans constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of
words such as "may," "will," "should," "expects," "plans," "anticipates," and "believes." There are a number of risks and uncertainties that could cause StorageTek's actual results to differ materially.</p>
<p>Some of these risks and uncertainties include, but are not limited to, StorageTek's ability to develop, manufacture and market new products and services successfully; the effect of product mix and distribution channel mix on our gross margins; our ability to execute our Information Lifecycle Management™ strategy; competitive pricing pressures; rapid technological changes in the markets in which we compete; our ability to attract and retain highly skilled employees; changes in our management; our ability to protect and develop intellectual property rights; our reliance on certain sole source suppliers; our ability to obtain quality parts and components in a timely manner; general economic conditions in the United States and globally; and other risks described in StorageTek's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that are filed with the Securities and Exchange Commission and which are available on the SEC's website.</p>
<p>ABOUT STORAGETEK
StorageTek (NYSE:STK), a US$2 billion worldwide company with headquarters in Louisville, Colo., delivers a broad range of storage solutions that are easy to manage, integrate well with existing infrastructures and allow universal access to data across servers, media types and networks. StorageTek provides practical and safe storage solutions in disk, networking, services, tape and tape automation. For more information, see www.storagetek.com.</p>
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<p>TRADEMARKS: StorageTek and the StorageTek logo are registered trademarks of Storage Technology Corporation. Other names mentioned may be trademarks of Storage Technology Corporation or other vendors/manufacturers.</p>
<p>MEDIA CONTACT:
Chris Bowes
Bowes Communications
+61 (0)2 9387 2332
cbowes@ozemail.com.au</p>

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