Maxtor Corporation reports strong financial results

Maxtor Corporation has announced its financial results for the fourth quarter ended December 27, 2003.
Revenue for the quarter was $1.171 billion. The Company reported net income on a GAAP basis of $38.8 million, or $0.15 per diluted share. Included in GAAP net income was a charge of $23.6 million for the amortisation of intangible assets and $0.2 million in stock-based compensation expense. GAAP net income also included income from discontinued operations of $2.2 million, or $0.01 per diluted share. On a non-GAAP basis, excluding these charges, Maxtor reported income from continuing operations of $60.4 million, or $0.24 per diluted share. In the fourth quarter of 2002, revenue was $1.038 billion. Net income on a GAAP basis was $3.6 million, or $0.01 per diluted share. The GAAP net income in the fourth quarter of 2002 included a charge for the amortization of intangible assets, stock-based compensation expense and severance expense related to a reduction in force, totaling $33.7 million. On a non-GAAP basis, excluding these charges, net income in the fourth quarter of 2002 was $37.3 million, or $0.15 per diluted share.
"We are very pleased with Maxtor's fourth quarter financial results," said Paul Tufano, president and chief executive officer. "During the quarter, the company achieved record quarterly unit shipments, revenue and net income. We shipped 15.8 million hard disk drives, reflecting good demand for desktop PCs and Intel-based servers, as well as emerging applications including consumer electronics and midline and nearline enterprise storage."
Desktop drive shipments in the fourth quarter totaled 14.9 million. During the quarter, Maxtor added two major consumer electronics OEM customers and shipped 1,641,000 drives to CE OEMs. Shipments of SCSI drives increased in the fourth quarter to 854,000 compared with 709,000 in the third quarter of 2003.
"Looking ahead, we believe that 2004 will be a year of significant opportunity for the hard drive industry and for Maxtor," continued Tufano. "Demand in our core desktop and server markets remains strong. There is growing momentum for the use of hard drives in emerging applications where Maxtor has a leadership position. We are committed to improving our operating leverage throughout the year, by enhancing manufacturing efficiencies, driving economies through the supply chain, and maintaining a strong focus on expense control."
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