JNI Corporation Revenues Down

JNI(R) Corporation , a supplier of Fibre Channel host bus adapters (HBAs) for the enterprise storage market, this week reported net revenues of $18.1 million for the third quarter of 2001, a decrease of 40% from $30.0 million for the third quarter of 2000, and a sequential decrease of 22% from $23.1 million for the second quarter of 2001.

The company said third quarter of 2001 gross margin was 58.1%, compared to 59.3% for the third quarter of 2000, and 59.5% for the second quarter of 2001 (excluding the effect of an inventory reserve recorded during the second quarter).

JNI reported a third quarter net loss of $(353,000), or $(0.01) per share, excluding amortization of intangibles and stock-based compensation of $1.4 million, and utilizing an effective tax rate of 35%. These results compare to net income of $5.0 million, or $0.18 per diluted share, excluding amortization of intangibles and stock-based compensation of $1.5 million and utilizing an effective tax rate of 38%, for the third quarter of 2000, and net income of $755,000 or $0.03 per diluted share for the second quarter of 2001 which excludes both an excess inventory charge of $7.7 million and amortization for intangibles and stock based compensation of $1.4 million.

Including amortization, JNI reported a net loss of $(2.0) million, or $(0.07) per share for the third quarter of 2001, compared to net income of $4.4 million, or $0.16 per diluted share, for the third quarter of 2000.

“As the market begins the transition to 2 Gb data link speeds for storage area network (SAN) infrastructure, JNI is extremely well positioned,” said President and Chief Executive Officer Neal Waddington. “Our Emerald III products are certified at all major storage OEMs and meet the needs of the majority of demand for build-out of 1 Gb infrastructure. Emerald IV has completed qualification at many storage OEMs and we expect that the remainder will be completed during the fourth quarter. In what I see as a clear recognition of JNI’s outstanding reliability and strong market position, many early 2 Gb end users have installed JNI’s SBus, PCI and CompactPCI Emerald IV HBAs ahead of the completion of OEM certifications. Both of these trends bode well for JNI’s continued success.”