StorageTek Hit With Q1 Loss

FRAMINGHAM (05/03/2000) - Troubled Storage Technology Corp. has reported first-quarter losses, as well as a decline in sales.

The Louisville, Colorado-based company lost $39.5 million in the first quarter, ending March 31, compared with $5.8 million in profits during the same period last year, StorageTek announced yesterday. Sales for the data storage equipment vendor also tumbled, totaling $459.7 million for this period, down from $517.5 million for the first quarter last year.

StorageTek's restructuring is on track, with 1,250 positions cut worldwide so far,according to a statement released by the company. StorageTek announced last February that approximately 1,300 positions would be eliminated.

The company has also made progress in its hunt for a replacement for David Weiss, the company's former chairman, president and CEO, according to the statement. Weiss offered his resignation in February on the heels of StorageTek's poor year-end financial showing. The board of directors' search committee is in the process of interviewing candidates.

The company is continuing to enter other business areas, having just announced the formation of ManagedStorage International Inc., which offers services such as storage on demand, server backup and content management.

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