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StorageTek Second Quarter 2001 Earnings

StorageTek(R) (Storage Technology Corp.), this week reported second quarter 2001 revenue of $512 million and earnings per share of $0.12, compared to second quarter 2000 revenue of $512 million and earnings per share of $0.09, excluding restructuring charges. In the second quarter of 2000, pre-tax restructuring charges of $12.4 million reduced earnings per share by $0.08 to a reported $0.01 per share. Gross margin for the second quarter of 2001 was 43 percent compared to 41 percent for the second quarter of 2000. This margin increase reflects a stronger product mix and continued benefits obtained from operational efficiencies throughout the company.

"We believe that the strategy we laid out last year emphasizing our superior virtual solutions and our leading tape offerings are clearly addressing the market's needs. Customers know they need storage solutions that are both economically feasible and environmentally fitting. StorageTek is the only storage provider that can meet their business needs through a strong suite of solutions that include the benefit of virtualization," said Patrick Martin, StorageTek chairman, president and chief executive officer. "The strong market acceptance this quarter of our virtual tape solution, the Virtual Storage Manager(TM), is just one example that companies are embracing improvements to traditional storage solutions."