Overland Data Revenue, Earnings Up On Strong Midrange Tape Automation

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Tape automation vendor Overland Data on Thursday reported a slight increase in revenue and earnings for its second quarter of fiscal year 2002.

Revenue for the quarter reached $45.6 million, compared with $43.6 million during the same period of last year. Income was $2.0 million, or 18 cents per share, compared with $1.8 million, or 17 cents per share last year.

Analysts expected earnings per share of 13 cents, according to First Call.

During the company's conference call, Overland President and CEO Christopher Calisi said a big part of the company's earnings growth came from its focus on the midrange tape automation market, which he said is growing faster than the overall tape-automation market.

That focus included the introduction of the company's new Neo tape libraries which went from 0 percent of revenue in March 2001 to 43 percent revenue during the second quarter. In June, the company also sold its low-end Travan-based WS30 and EDT40 tape drive designs and related assets to Seagate Removable Storage Solutions.

For the current quarter, Calisi said he expects revenue to grow between 15 percent and 20 percent, compared with last year's third quarter. However, he said revenue for the quarter will be down from the second quarter. He also expects earnings per share to double compared with last year, including a non-recurring gain from the sale of the Travan technology.

Investors on Thursday gave Overland a standing ovation after the release of the company's financials by driving the company's shares to $14.25, a jump of $1.25, or 9.6 percent, over Wednesday.

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