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Maxtor Corporation reports strong third quarter 2003 financial results

  • 23 October, 2003 12:22

<p>SYDNEY, Australia, October 23, 2003 - Maxtor Corporation (NYSE: MXO) today announced its financial results for the third quarter ended September 27, 2003. Revenue for the quarter was US$1.066 billion. The Company reported net income on a GAAP basis of US$29.9 million, or US$0.12 per diluted share. Included in GAAP net income was a charge of US$20.5 million for the amortisation of intangible assets and US$0.2 million in stock compensation expense. On a non-GAAP basis, excluding these charges, Maxtor reported net income of US$50.6 million, or US$0.20 per diluted share.
In the third quarter of 2002, revenue was US$819.7 million. The Company reported a net loss on a GAAP basis of US$163.6 million, or US$(0.68) per share. This loss was comprised of US$105.5 million from continuing operations and US$58.1 million from discontinued operations associated with the closure of the network attached storage (NAS) business. The loss from continuing operations included US$21.2 million for the amortisation of intangible assets and a charge for stock compensation primarily related to the acquisition of Quantum’s Hard Disk Drive Group in April 2001, and a US$9.5 million restructuring charge associated with facilities closure. On a non-GAAP basis, excluding these charges, the loss from continuing operations was US$74.8 million, or US$(0.31) per share.
“We are very pleased with the Company’s third quarter financial performance,” said Paul Tufano, president and chief executive officer. “During the quarter, we shipped a record 14.9 million hard disk drives. We exceeded the Company’s guidance for revenue and non-GAAP net income. And we continued to make progress in key market segments.”
During the third quarter, desktop drive shipments totaled 14.2 million units. Shipments of SCSI drives increased significantly in the third quarter to 709,000 compared with 574,000 in the second quarter of 2003. Maxtor launched its second generation OneTouch external hard drive and expanded its retail presence. Also during the quarter, the company added three new DVR/PVR accounts and increased drive shipments to consumer electronics OEMs to 1,267,000.
“As we enter the seasonally strongest quarter of the year, we look forward to continued momentum,” Mr. Tufano continued. “With healthy demand in our traditional desktop and server markets, leadership in emerging markets, and our focus on cost and expense controls, we believe Maxtor is well-positioned to capitalize on the opportunities ahead.”
About Maxtor
Maxtor Corporation (www.maxtor.com) is one of the world’s leading suppliers of information storage solutions. The Company has an expansive line of storage products for desktop computers, near-line storage, high-performance Intel-based servers, and consumer electronics. Maxtor has a reputation as a proven market leader built by consistently providing high-quality products and service and support for its customers. Maxtor and its products can be found at www.maxtor.com or by calling toll-free (800) 2-MAXTOR. Maxtor is traded on the NYSE under the MXO symbol.</p>
<p>This release contains forward-looking statements relating to the demand for hard disk drives and Maxtor’s ability to capitalize on its opportunities. These statements are based on current expectations and are subject to risks and uncertainties which could materially affect the company’s results, including, but not limited to, market demand for hard disk drives, market acceptance of the company’s products, the company’s ability to execute future development and production ramps and utilize manufacturing assets efficiently, changes in product and customer mix, the availability of components, pricing trends, actions by competitors, international security and political stability, and general economic and industry conditions. These and other risk factors are contained in periodic reports filed with the SEC, including, but not limited to, the Form 10-K for fiscal 2002 and recent 10-Qs. Maxtor is under no obligation (and expressly disclaims any obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.</p>
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<p>For further information please contact:
Craig Davis Fiona Martin
Maxtor Australia Max Australia
Phone: (02)-9369-3662 Phone: (02)-9954-3492
Email: craig_davis@maxtor.com Email: fiona.martin@maxaustralia.com.au</p>

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