Storage Vendor Revenue, Earnings Up

On Wednesday officials of Mountain View, Calif.-based Veritas said the company's revenue for the quarter which ended June 30 was $413 million, an all-time record. This compares to $365 million for the same quarter last year.

The company also reported earnings of $49 million, or 11 cents per share, in the quarter that just ended, compared to $26 million, or 6 cents per share, for the same period last year. Analysts had been predicting earnings of 15 cents per share, according to Thomson/First Call.

In his statement, Gary Bloom, chairman, president, and CEO of Veritas, said the quarter was the best in his company's history. He also said he expects revenue for the quarter ending September 30 to be between $420 million and $430 million, with earnings per share to be in the 13 cents to 15 cents range. These figures include the effects of the acquisition of Precise, which closed this quarter.

Ed Gillis, executive vice president and CFO for Veritas, said on Wednesday that the company has authorized up to $300 million to be used for a stock repurchase program.

Shares of Veritas, which reported after the close of the stock market, rose 29 cents to $27.91.

Also on Wednesday, Carlsbad, Calif.-based Dot Hill reported revenue of $48.4 million for its second quarter, which ended June 30, compared to $11.2 million for its 2002 second quarter, company officials reported Wednesday.

The company also reported an income of $2.5 million, or 7 cents per share, compared to a loss of $8.9 million, or 36 cents per share, for the same period last year. Analysts had been predicting earnings per share of about 3 cents, according to Thomson/First Call.

Key to the earnings was the recent closure of the company's production facilities in Carlsbad and the movement of production to Solectron, a contract manufacturer, President and CEO James Lambert said in a statement. The company readjusted headcount to reflect the production change, but also hired an additional 19 engineers during the quarter, Lambert said.

Based on the company's second quarter results, Dot Hill has revised its 2003 guidance to call for revenue of $180 million and income of 25 cents per share, CFO Preston Romm said in a statement. This compares to the previous guidance of $171.5 million in revenue and 21 cents per share in earnings, he said.

Despite its strong performance compared to a year ago, investors drove Dot Hill's stock down 30 cents to $15.40. The company reported earnings before the close of the market.

Also on Wednesday, Dot Hill officials said the company has been approved to be listed on the NASDAQ Stock Market starting July 28. The company, which currently has the "HIL" ticker symbol on the American Stock Exchange, will be known as "HILL" on the NASDAQ exchange.

Officials of Louisville, Colo.-based StorageTek on Tuesday said the company's revenue for the second quarter of 2003, which ended June 27, was $527.3 million, up from the $491.9 million recorded for the same quarter last year.

Income for the quarter which just ended was $30.1 million, or 27 cents per share, compared to $19.1 million, or 18 cents per share, for the same quarter last year. Analysts had been predicting earnings per share of 24 cents, according to First Call.

StorageTek's financial report was released after the market closed on Tuesday. The company's share prices fell $1.04 to $25.55 on Wednesday.