Storage Area Networks Announces Q2 Results
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SAN Holdings Inc., dba Storage Area Networks (SANZ), a supplier of integrated data storage solutions and "rich media" data storage appliances and services, announced results for the second quarter, 2001.
The company reported revenues for the three months ended June 30, 2001 of $5,542,000 with gross profit of $900,000. SG&A expenses were $1,907,000 yielding EBITDA of ($899,000), a loss from operations of $1,017,000 and an after tax loss of $1,012,000. The company said it spent approximately $400,000 on engineering and marketing introduction of its SANZstream and GEMS data appliance and service offerings and incurred $115,000 in recruiting expenses.
John Jenkins, CEO, said, "We were successful, in a very difficult commercial market, in increasing revenues by more than 50% over the March quarter. For the quarter, our revenue mix was unusually weighted to the Federal markets yielding generally lower gross profit margins. Operating expenses remained basically at the levels of the March quarter as we incurred significant recruiting expense associated with increase in sales and engineering staff, and continued to invest heavily in our integrated product solution offerings where we achieved important prove-in milestones."
"Our sales force expansion has brought good increase in new account penetration, and expanded success in our Federal markets, he added. SANZ was the number one Federal Channel Partner for StorageTek in the June quarter." Our investment in building a Sun Microsystems storage practice received a solid boost from the Sun-Hitachi announcement that further reinforced the level of commitment that Sun is making to this market.
The company also announced it had signed a letter of intent to acquire certain assets of GTRI, a Denver based system integrator and value added reseller that serves the storage and telecommunication markets in the Rocky Mountain region.