GAAP-Based Earnings Per Share of Eight Cents (Five Cents Non-GAAP) Reflects
Strong Product Momentum Across Quantum and Continued Expense Management
SAN JOSE, Calif., Jan. 19 /PRNewswire-FirstCall/ -- Quantum Corp.
(NYSE: DSS), a global leader in storage, today announced that revenue for its
fiscal third quarter (FQ3'05), ended Dec. 26, 2004, was $201 million, up 12
percent from the fiscal second quarter (FQ2'05), and down 2 percent compared
to the fiscal third quarter of 2004 (FQ3'04). The sequential revenue growth
was driven by increases in tape drive, media and storage systems sales, and
across nearly all major product categories. Quantum had a GAAP profit of $16
million, or 8 cents per share (diluted), compared to a loss of 3 cents per
share in FQ2'05 and a loss of 4 cents per share in FQ3'04. The GAAP profit
reflected a $12.1 million tax benefit related to the settlement with Maxtor of
tax issues associated with the sale of Quantum's former hard disk drive
business in 2001. The company achieved a non-GAAP profit of $9 million, or 5
cents per share (diluted), an increase of 5 cents per share sequentially and 4
cents per share on a year-over-year basis. (For a reconciliation of GAAP to
non-GAAP figures, please see the accompanying table "Third Quarter Fiscal Year
2005 GAAP to Non-GAAP Reconciliation.") The financial results announced today
do not include any contribution from Quantum's acquisition of Certance, which
was completed on Jan. 5, 2005, after the close of FQ3'05.
"We achieved solid momentum in the December quarter, with significant
improvements in revenue and earnings over the prior quarter, double-digit
revenue growth in both storage systems and tape media, and strong sales of our
leading tape drive, tape automation and disk-based product offerings," said
Rick Belluzzo, chairman and CEO of Quantum. "The significant progress we've
made, combined with the recently closed acquisition of Certance, provides a
tremendous foundation on which to further grow our business in backup,
recovery and archive."
Contributing to Quantum's strong bottom line results in the December
quarter was the company's continued focus on managing expenses. On a GAAP
basis, operating expenses were $55 million, down from $58 million in the prior
quarter and $67 million in FQ3'04. Non-GAAP operating expenses were $53
million, flat with the three-year-low expense level achieved in FQ2'05 and
down from $60 million on a year-over-year basis. GAAP gross margin rates in
FQ3'05 were up slightly on a sequential basis from 28.9 percent to 29.8
percent, while non-GAAP gross margin rates increased from 30.5 percent to 31.3
percent sequentially. Compared to the same quarter last year, both GAAP and
non-GAAP gross margin rates were down about two percentage points in FQ3'05.
Revenue in Quantum's Storage Systems business for FQ3'05 was $84 million,
an increase of 16 percent over the September quarter and 17 percent over the
comparable quarter last year. Contributing to this growth were higher sales
across all of the company's major tape automation product categories, with
particular strength in the enterprise, where unit shipments of the PX720
library were up more than 40 percent sequentially. In addition, unit
shipments of both Quantum's L-Series autoloaders and mid-range M-Series
libraries increased approximately 20 percent sequentially.
The company's DX-Series disk-based backup systems continued to gain
momentum in the December quarter, with revenue nearly doubling on a year-over-
year basis. Demand in the government sector remained particularly strong, and
Quantum also said it is experiencing an increased number of bids for large
DX100 systems.
Quantum's tape drive revenue grew 3 percent sequentially in the December
quarter, to $67 million, down from $82 million in the comparable quarter last
year. The sequential growth was fueled primarily by increased unit shipments
of the SDLT 600, which more than doubled over the prior quarter, and shipments
of the DLT VS160, which were up approximately 50 percent sequentially, while
sales of older products transitioned down. The company said it anticipated
further tape drive momentum in the current quarter, as two more major system
OEMs are expected to begin shipping the SDLT 600 and as Quantum expands its
product portfolio with new tape drive technologies acquired through Certance.
Tape media revenue in FQ3'05 was $51 million, an increase of 19 percent on
a sequential basis. Unit shipments of SDLT(TM) media increased significantly
over the September quarter, and DLTtape IV branded and royalty volumes also
were up over the prior quarter. On a year-over-year basis, media revenue was
down about 3 percent.
Going forward, Quantum said its strategic priorities would remain largely
the same, but with some refinement as a result of the Certance acquisition.
Intended to deliver sustained growth and profit over the long-term, these
refined priorities include:
-- Capitalizing on the company's unique position as the independent volume
leader in tape drives;
-- Continuing to transition its tape automation platforms;
-- Making selective investments to grow beyond its traditional tape
businesses, as the company has done with its DX-Series disk-based
systems; and
-- Leveraging synergies from the Certance acquisition to improve its cost
and expense structure even further, while the company also shifts more
focus to increasing gross margins and enhancing new product execution.
In providing guidance for the fiscal fourth quarter (FQ4'05), Quantum's
first as a newly combined company since the Certance acquisition, the company
said it expects the quarter to reflect typical seasonal weakness as compared
to FQ3'05. Quantum also said it wanted to be a bit cautious as the company
works to integrate Certance employees, systems, products and processes.
Quantum said it expects overall revenues for the current quarter to be in
the range of $225 million to $240 million. The company anticipates that GAAP
gross margin rates will be slightly down sequentially and that non-GAAP gross
margin rates will be roughly flat compared to the December quarter. GAAP
operating expenses in FQ4'05 are expected to be in the range of $71 million to
$73 million, while non-GAAP operating expenses are expected to be in the $66
million to $68 million range, with no material synergies from the Certance
acquisition expected in this first quarter of integration. Quantum expects
GAAP bottom line results for the current quarter to be in the range of
breakeven to a loss of 4 cents per share, with non-GAAP earnings per share
expected to be in the range of breakeven to 4 cents profit. The GAAP to non-
GAAP difference reflects estimates of $6.8 million in amortization of
acquisition-related intangibles, of approximately $2 million in special
charges related to restructuring, and of approximately $200 thousand related
to the write-off of Certance in-process R&D. (For a reconciliation of GAAP to
non-GAAP amounts, please see the accompanying table entitled "GAAP to Non-GAAP
Reconciliation of Projected Fiscal Year 2005 Fourth Quarter Data.")
In addition to reporting its December quarter results, Quantum announced
today that John Gannon, president and chief operating officer, will retire
from the company at the end of the current fiscal year. Following his
retirement, the position of president and COO will be eliminated. Quantum
also announced that Lew Frauenfelder, senior vice president and general
manager of the company's Storage Devices Business Unit, is retiring at the end
of January and will be succeeded by Jim Wold, Quantum's vice president of
engineering for that business unit. Wold, who was previously vice president
of engineering at Certance, has 28 years of engineering and manufacturing
experience and, during just the last eight years alone, has overseen the
development and launch of more than 25 tape products. Frauenfelder will
continue to work with Quantum on a part-time basis for six months to assist
with the transition, product roadmaps and new technology development.
Use of Non-GAAP Financial Measures
The non-GAAP financial measures used in this press release exclude the
impact of: amortization of acquisition-related intangible assets, special
charges, charges for vacant facilities, gain on sale of equity interest, loss
on debt extinguishment, deferred tax asset valuation charge, the $12.1 million
tax benefit related to the settlement with Maxtor and results of discontinued
operations. These non-GAAP financial measures are not prepared in accordance
with generally accepted accounting principles and may be different from non-
GAAP financial measures used by other companies. Non-GAAP financial measures
should not be considered as a substitute for, or superior to, measures of
financial performance prepared in accordance with GAAP.
Quantum relies on non-GAAP financial measures in assessing what it
believes to be its core operating performance, and to assist in making
operating decisions, including staffing, future management priorities and how
it will direct future operating expenses. Quantum's business changed
significantly with the disposition of the hard disk drive business in 2001,
and total revenue and margins have declined significantly over the past three
years. Because of this, the company has incurred significant charges
associated with these changes and "right-sizing" the company toward expected
revenue levels. Quantum excludes the financial impact of these and other
items in reviewing what it believes are its core operating results. In this
regard, the company believes that non-GAAP financial measures provide
meaningful supplemental information regarding its core operational
performance. In addition, these non-GAAP financial measures facilitate
management's internal comparisons to Quantum's historical operating results
and comparisons to competitors' operating results. Quantum reports these non-
GAAP financial measures because it believes they are useful to investors,
providing visibility to supplemental information used by management in its
financial and operational decision-making. In addition, the company has
historically reported similar non-GAAP financial measures to its investors and
believes the inclusion of comparative numbers provides consistency in the
company's financial reporting at this time. Investors are encouraged to
review the reconciliation of the non-GAAP financial measures to their most
directly comparable GAAP financial measures as provided in the tables
accompanying this press release.
QUANTUM CORPORATION
THIRD QUARTER FISCAL YEAR 2005 GAAP TO NON-GAAP RECONCILIATION
( In thousands, except per-share amounts )
Three months Nine months
ended ended
December 26, 2004
GAAP net income (loss) $16,285 $(47)
Adjusting items:
Special charges: mainly severance
related 641 10,227
Amortization of intangible assets 4,454 13,200
Gain on sale of equity investment -- (1,238)
Income tax benefit related to Maxtor
settlement (12,095) (12,095)
Non-GAAP net income $9,285 $10,047
Non-GAAP net income per share,
diluted $0.05 $0.06
GAAP TO NON-GAAP RECONCILIATION OF PROJECTED FISCAL YEAR 2005
FOURTH QUARTER DATA
Projected GAAP gross margin rate Slightly down
Adjustment: Estimated amortization of
acquisition-related intangibles Approximately $4 million
Projected non-GAAP gross margin rate Roughly flat
Projected GAAP operating expenses Range of $71-73 million
Adjustment: Estimated amortization of
acquisition-related intangibles,
restructuring charges, and purchased
in-process research and development Approximately $5 million
Projected non-GAAP operating expenses Range of $66-68 million
Projected GAAP loss per share Breakeven to a loss of
4 cents per share
Adjustment: Estimated amortization of
acquisition-related intangibles,
restructuring charges, and purchased
in-process research and development Approximately 4 cents
Projected non-GAAP income (loss) per share Approximately breakeven
to 4 cents
The projected GAAP and non-GAAP financial information set forth in this
table represent forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements involve a number of risks and uncertainties as identified in
the Safe Harbor Statement of the press release.
These non-GAAP financial measures are not prepared in accordance with
generally accepted accounting principles and may be different from
non-GAAP financial measures used by other companies. Please see the
section of this press release titled Use of Non-GAAP Financial Measures
for more information.
Conference Call and Audio Webcast Notification
Quantum will hold a conference call today, Jan. 19, 2005, at 2 p.m. PST,
to discuss its December quarter results. Dial-in number: 303-262-2131 (U.S. &
International). Quantum will provide a live audio webcast of the conference
call beginning today, Jan. 19, 2005, at 2 p.m. PST. Site for the webcast and
related information: http://investors.quantum.com/.
About Quantum
Quantum Corp., a global leader in storage, delivers highly reliable
backup, recovery and archive solutions that meet demanding requirements for
data integrity and availability with superior price/performance and
comprehensive service and support. Quantum offers customers of all sizes an
unparalleled range of solutions, from leading tape drive and media
technologies, autoloaders and libraries to disk-based backup systems. Quantum
is the world's largest volume supplier of both tape drives and tape automation
and has pioneered the development of disk-based systems optimized for backup
and recovery. Quantum Corp., 1650 Technology Drive, Suite 800, San Jose, CA
95110, (408) 944-4000, http://www.quantum.com.
Quantum, the Quantum logo, DLT and DLTtape are trademarks of Quantum
Corporation registered in the United States and other countries. SDLT and DX
are trademarks of Quantum Corporation. All other trademarks are the property
of their respective owners.
"Safe Harbor" Statement under the U.S. Private Securities Litigation
Reform Act of 1995: This press release contains "forward-looking" statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Specifically, without limitation, statements relating to our financial outlook
for our fiscal 2005 fourth quarter, our efforts to further grow our business
in backup, recovery and archive, anticipated further tape drive momentum in
our fourth fiscal quarter, our expectation that two more major system OEMs
will begin shipping the SDLT 600, anticipated benefits and synergies
associated with our acquisition of Certance, and our going forward strategic
priorities intended to deliver sustained growth and profit over the long-term
are forward-looking statements within the meaning of the Safe Harbor. These
statements are based on management's current expectations and are subject to
certain risks and uncertainties. As a result, actual results may differ
materially from the forward-looking statements contained herein. Factors that
could cause actual results to differ materially from those described herein
include, but are not limited to, our ability to successfully execute to our
product roadmaps and timely ship our products, the risk that lower volumes and
continuing price and cost pressures could lead to lower gross margins, media
royalties from media manufacturers coming in at lower levels than expected,
adjustments which could be made as we complete our financial and accounting
review for the third quarter of fiscal 2005, acceptance of, or demand for, our
products being lower than anticipated, the inability to successfully integrate
the businesses of Quantum and Certance, costs related to the acquisition and
labor integration issues. More detailed information about these risk factors,
and additional risk factors, are set forth in Quantum's periodic filings with
the Securities and Exchange Commission, including, but not limited to, those
risks and uncertainties listed in the section entitled "Management's
Discussion and Analysis of Financial Condition and Results of Operations -
Risk Factors," on pages 35 to 46 in Quantum's Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission on November 3, 2004 and
pages 38 to 49 in Quantum's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on June 14, 2004. In particular, you should
review the risk factors on pages 35, 36 and 38 of our Form 10-Q under the
headings "A large percentage of our sales come from a few customers, and these
customers have no minimum or long-term purchase commitments", "Our operating
results depend on new product introductions, which may not be successful, in
which case, our business, financial condition and operating results may be
materially and adversely affected", "We have experienced a downward trend in
tape media and tape royalty revenues, primarily caused by year-over-year
declines in Quantum branded tape media unit sales, and more recently, declines
in media prices, which has had a negative effect on our profits and cash flow.
If this trend were to continue or worsen, our business, financial condition
and operating results may be even further materially and adversely affected",
"In October 2004, we entered into a definitive agreement to acquire Certance,
and the failure to successfully integrate this acquisition could harm our
business, financial condition and operating results" and "Competition has
increased, and may increasingly intensify, in the tape drive and tape
automation markets as a result of competitors introducing competing products
based on new technology standards, which could materially and adversely affect
our business, financial condition and results of operations." Quantum
expressly disclaims any obligation to update or alter its forward-looking
statements, whether as a result of new information, future events or
otherwise.
QUANTUM CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
( In thousands, except per-share amounts )
Three Months Ended Nine Months Ended
Dec. 26, Dec. 28, Dec. 26, Dec. 28,
2004 2003 2004 2003
Product revenue $170,492 $171,900 $466,460 $501,729
Royalty revenue 30,907 33,483 87,668 100,744
Total revenue 201,399 205,383 554,128 602,473
Cost of revenue 141,348 140,322 384,040 415,742
Gross margin 60,051 65,061 170,088 186,731
Operating expenses:
Research and development 21,239 24,373 65,781 77,500
Sales and marketing 20,093 24,163 64,511 73,135
General and administrative 13,335 13,391 36,541 40,513
Special charges 641 4,584 10,227 8,160
55,308 66,511 177,060 199,308
Income (loss) from operations 4,743 (1,450) (6,972) (12,577)
Interest income and other, net 2,387 527 6,501 5,573
Interest expense (2,755) (2,893) (8,306) (14,447)
Loss on debt extinguishment -- -- -- (2,565)
Income (loss) before income taxes 4,375 (3,816) (8,777) (24,016)
Income tax provision (benefit) (11,910) 2,660 (8,730) 29,914
Income (loss) from continuing
operations 16,285 (6,476) (47) (53,930)
Discontinued operations:
Income from discontinued
operations, net of income taxes -- 1,043 -- 1,043
Income from discontinued
operations -- 1,043 -- 1,043
Net income (loss) $16,285 $(5,433) $(47) $(52,887)
Income (loss) per share from
continuing operations
Basic $0.09 $(0.04) $ -- $(0.31)
Diluted $0.08 $(0.04) $ -- $(0.31)
Weighted average common shares -
continuing operations
Basic 181,607 176,550 180,744 175,002
Diluted 219,280 176,550 180,744 175,002
Income per share from discontinued
operations
Basic $ -- $0.01 $ -- $0.01
Diluted $ -- $0.01 $ -- $0.01
Weighted average common shares -
discontinuing operations
Basic 181,607 176,550 180,744 175,002
Diluted 219,280 176,550 180,744 175,002
Net income (loss) per share
Basic $0.09 $(0.03) $ -- $(0.30)
Diluted $0.08 $(0.03) $ -- $(0.30)
Weighted average common and common
equivalent shares
Basic 181,607 176,550 180,744 175,002
Diluted 219,280 176,550 180,744 175,002
QUANTUM CORPORATION
NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
( In thousands, except per-share amounts )
Three Months Ended Nine Months Ended
December December December December
26, 2004 28, 2003 26, 2004 28, 2003
Product revenue $170,492 $171,900 $466,460 $501,729
Royalty revenue 30,907 33,483 87,668 100,744
Total revenue 201,399 205,383 554,128 602,473
Cost of revenue 138,304 137,348 375,046 406,820
Gross margin 63,095 68,035 179,082 195,653
Operating expenses:
Research and development 20,839 23,943 64,585 76,218
Sales and marketing 19,215 23,289 61,883 69,633
General and administrative 13,203 13,266 36,159 40,136
Special charges -- -- -- 476
53,257 60,498 162,627 186,463
Income from operations 9,838 7,537 16,455 9,190
Interest income and other, net 2,387 527 5,263 5,573
Interest expense (2,755) (2,893) (8,306) (14,447)
Income before income taxes 9,470 5,171 13,412 316
Income tax provision 185 2,660 3,365 8,652
Net income (loss) $9,285 $2,511 $10,047 $(8,336)
Net income (loss) per share
Basic $0.05 $0.01 $0.06 $(0.05)
Diluted $0.05 $0.01 $0.06 $(0.05)
Weighted average common and common
equivalent shares
Basic 181,607 176,550 180,744 175,002
Diluted 219,280 179,356 181,803 175,002
The non-GAAP amounts have been
adjusted to eliminate the
following:
Restructuring related
Special charges $641 $4,584 $10,227 $5,349
Special charges valuation charge
against manufacturing facility -- -- -- 2,335
Investment related
Gain on sale of equity investment -- -- (1,238) --
Results of discontinued
operations, net of income taxes -- (1,043) -- (1,043)
Other
Loss on debt extinguishment -- -- -- 2,565
Amortization of intangible
assets(1) 4,454 4,403 13,200 14,083
Income tax benefit related to
Maxtor settlement (12,095) -- (12,095) --
Valuation charge against net
deferred tax assets -- -- -- 21,262
Total non-GAAP adjustments $(7,000) $7,944 $10,094 $44,551
Note 1
The amortization of intangibles
was allocated as follows:
Cost of revenue $3,044 $2,974 $8,994 $8,922
Research and development 400 430 1,196 1,282
Sales and marketing 878 874 2,628 3,502
General and administrative 132 125 382 377
$4,454 $4,403 $13,200 $14,083
QUANTUM CORPORATION
GAAP TO NON-GAAP RECONCILIATION OF CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
( In thousands, except per-share amounts )
Three Months Ended
December 26, December 26,
2004 Adjust- 2004
GAAP ments Note Non-GAAP
Product revenue $170,492 $170,492
Royalty revenue 30,907 30,907
Total revenue 201,399 -- 201,399
Cost of revenue 141,348 (3,044) A 138,304
Gross margin 60,051 3,044 63,095
Operating expenses:
Research and development 21,239 (400) A 20,839
Sales and marketing 20,093 (878) A 19,215
General and administrative 13,335 (132) A 13,203
Special charges 641 (641) --
55,308 (2,051) 53,257
Income (loss) from operations 4,743 5,095 9,838
Interest income and other, net 2,387 2,387
Interest expense (2,755) (2,755)
Loss on debt extinguishment -- --
Income (loss) before income taxes 4,375 5,095 9,470
Income tax provision (benefit) (11,910) 12,095 D 185
Income (loss) from continuing
operations 16,285 (7,000) 9,285
Discontinued operations:
Income from discontinued operations,
net of income taxes -- -- --
Income from discontinued operations -- -- --
Net income (loss) $16,285 $(7,000) $9,285
Net income (loss) per share-basic $0.09 $(0.04) $0.05
Net income (loss) per share-diluted $0.08 $(0.03) $0.05
Three Months Ended
December 28, December 28,
2003 Adjust- 2003
GAAP ments Note Non-GAAP
Product revenue $171,900 $171,900
Royalty revenue 33,483 33,483
Total revenue 205,383 -- 205,383
Cost of revenue 140,322 (2,974) A 137,348
Gross margin 65,061 2,974 68,035
Operating expenses:
Research and development 24,373 (430) A 23,943
Sales and marketing 24,163 (874) A 23,289
General and administrative 13,391 (125) A 13,266
Special charges 4,584 (4,584) --
66,511 (6,013) 60,498
Income (loss) from operations (1,450) 8,987 7,537
Interest income and other, net 527 527
Interest expense (2,893) (2,893)
Loss on debt extinguishment -- --
Income (loss) before income taxes (3,816) 8,987 5,171
Income tax provision (benefit) 2,660 -- 2,660
Income (loss) from continuing
operations (6,476) 8,987 2,511
Discontinued operations:
Income from discontinued operations,
net of income taxes 1,043 (1,043) --
Income from discontinued operations 1,043 (1,043) --
Net income (loss) $(5,433) $7,944 $2,511
Net income (loss) per share-basic $(0.03) $0.04 $0.01
Net income (loss) per share-diluted $(0.03) $0.04 $0.01
Nine Months Ended
December 26, December 26,
2004 Adjust- 2004
GAAP ments Note Non-GAAP
Product revenue $466,460 $466,460
Royalty revenue 87,668 87,668
Total revenue 554,128 -- 554,128
Cost of revenue 384,040 (8,994) A 375,046
Gross margin 170,088 8,994 179,082
Operating expenses:
Research and development 65,781 (1,196) A 64,585
Sales and marketing 64,511 (2,628) A 61,883
General and administrative 36,541 (382) A 36,159
Special charges 10,227 (10,227) --
177,060 (14,433) 162,627
Income (loss) from operations (6,972) 23,427 16,455
Interest income and other, net 6,501 (1,238) C 5,263
Interest expense (8,306) (8,306)
Loss on debt extinguishment -- --
Income (loss) before income taxes (8,777) 22,189 13,412
Income tax provision (benefit) (8,730) 12,095 D 3,365
Income (loss) from continuing
operations (47) 10,094 10,047
Discontinued operations:
Income from discontinued operations,
net of income taxes -- -- --
Income from discontinued operations -- -- --
Net income (loss) $(47) $10,094 $10,047
Net income (loss) per share-basic $ -- $0.06 $0.06
Net income (loss) per share-diluted $ -- $0.06 $0.06
Nine Months Ended
December 28, December 28,
2003 Adjust- 2003
GAAP ments Note Non-GAAP
Product revenue $501,729 $501,729
Royalty revenue 100,744 100,744
Total revenue 602,473 -- 602,473
Cost of revenue 415,742 (8,922) A 406,820
Gross margin 186,731 8,922 195,653
Operating expenses:
Research and development 77,500 (1,282) A 76,218
Sales and marketing 73,135 (3,502) A 69,633
General and administrative 40,513 (377) A 40,136
Special charges 8,160 (7,684) 476
199,308 (12,845) 186,463
Income (loss) from operations (12,577) 21,767 9,190
Interest income and other, net 5,573 5,573
Interest expense (14,447) (14,447)
Loss on debt extinguishment (2,565) 2,565 --
Income (loss) before income taxes (24,016) 24,332 316
Income tax provision (benefit) 29,914 (21,262) B 8,652
Income (loss) from continuing
operations (53,930) 45,594 (8,336)
Discontinued operations:
Income from discontinued operations,
net of income taxes 1,043 (1,043) --
Income from discontinued operations 1,043 (1,043) --
Net income (loss) $(52,887) $44,551 $(8,336)
Net income (loss) per share-basic $(0.30) $0.25 $(0.05)
Net income (loss) per share-diluted $(0.30) $0.25 $(0.05)
Notes
A. Amortization of intangible assets.
B. Valuation charge against net deferred tax assets.
C. Gain on sale of equity investment.
D. Income tax benefit related to Maxtor settlement
QUANTUM CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
( In thousands )
December 26, March 31,
2004 2004
Assets
Current assets:
Cash and cash equivalents $261,862 $214,607
Short-term investments 27,825 50,800
Accounts receivable, net of allowance
for doubtful accounts of $8,679
and $9,988 111,692 117,397
Inventories 48,315 48,343
Service inventories 54,291 51,258
Deferred income taxes 27,520 27,514
Other current assets 26,797 36,625
Total current assets 558,302 546,544
Long-term assets:
Property and equipment, less
accumulated depreciation 33,870 40,377
Purchased technology and other
intangible assets, less
accumulated amortization 47,675 60,874
Goodwill 45,690 45,690
Other assets 6,414 12,073
Total long-term assets 133,649 159,014
$691,951 $705,558
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $61,288 $67,341
Accrued warranty 33,874 38,015
Short-term debt 1,511 537
Other accrued liabilities 97,356 105,991
Total current liabilities 194,029 211,884
Deferred income taxes 27,111 27,125
Convertible subordinated debt 160,000 160,000
Stockholders' equity 310,811 306,549
$691,951 $705,558
|
