StorageTek Australia optimistic for future

Local StorageTek executives are optimistic about the company's future despite the possibility the storage provider could be up for sale shortly.

The company announced on Friday it has hired management consultants Goldman Sachs & Co and McKinsey & Co to assist in on-going analysis of strategic alternatives.

StorageTek announced it is considering strategic directions, including financial restructuring, acquisitions, divestitures, spin-offs, joint ventures as well as business combinations that could include a sale, merger or business partnership.

The announcement came hot on the heels of warnings that the company's third quarter earnings will fall "significantly" below analysts' predictions.

StorageTek announced early last week that its Q3 net earnings, to be released on October 28, can be expected to be under 10 cents per share.

Locally, officials said the company's performance over the past 12 months has been ahead of forecast.

"There has been continued growth quarter by quarter during the financial year," a spokesperson told Computerworld Today.

"Our expectation is that local results will remain strong."

According to the spokesperson, financial analysts "have been told" of the company's future business plans and local officials "are now waiting for the company to execute those plans".

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