Maxtor Announces Second Quarter Results
Maxtor Corp. announced its financial results for the second quarter ended June 30,2001. They include the financial results of Quantum HDD, following completion of the merger with Quantum HDD on April 2, 2001.
Revenue for the second quarter of 2001 was $1.04 billion. Maxtor reported a net loss for the quarter on a GAAP basis of $319.8 million, or $(1.35) per share.
Merger-related expenses during the second quarter included the write-off of in-process R&D, amortization of goodwill and intangible assets, and other one-time charges,totaling $249.0 million. On a proforma basis, the company reported a net loss of $70.8 million, or $(0.30) per share. In the second quarter 2000 on a GAAP basis, Maxtor reported revenue of $667 million and net income of $13.2 million, or $0.11 per diluted share.
"This was a challenging quarter for the company, as we worked aggressively to integrate the operations of Quantum HDD in the midst of weakening demand for hard disk drives," said Mike Cannon, president and CEO. "During the quarter, we shipped 12.1 million desktop and high-end SCSI hard drives. We also took steps to reduce inventory, especially of the Quantum HDD 4400 RPM product.
"Despite the challenges, we are extremely pleased with our progress in integrating Quantum HDD's business into Maxtor, Cannon continued. Within the first 90 days after the close of the merger, 100% of the systems, sales and operations of the two companies were fully integrated. The integration was transparent to our customers, and we began achieving efficiencies much faster than we had previously expected. We were also very pleased with the progress of our network attached storage business. During the quarter, the Network Systems Group formalized relationships with several important software providers, introduced compelling new products, and doubled revenue from the previous quarter to $9.1 million.
"We are taking necessary actions to ensure that Maxtor emerges from the current downturn in the economy, well-positioned for the growth opportunities that lie ahead. Storage has a great future, and we are committed to seeing that Maxtor remains an industry leader," Cannon concluded.