Procom Reports Third-Quarter and Nine-Month Results

Network attached storage (NAS) vendor Procom Technology Inc. today announced third-quarter 2001 revenues of $8.0 million, compared to revenue of $13.8 million in the prior year’s third quarter. Revenue for the nine months ended April 30, 2001, totaled $33.0 million, compared to $49.0 million in the prior year.

Sales of NAS products totaled $5.8 million in the third-quarter 2001, up 18% over third-quarter 2000 sales of $4.9 million. NAS sales for the nine months ended April 30, 2001, totaled $22.1 million, an increase of 109% over NAS sales for the comparable period last year of $10.6 million. NAS sales in the third quarter of 2001 accounted for 73% of total third-quarter revenue, with the remaining 27% generated from sales of legacy products. For the same period last year, NAS sales accounted for 35% of total revenue.

Within the NAS category, third-quarter 2001 sales of Procom’s NetFORCE(TM) Products grew 40% from $3.5 million in the third quarter of 2000 to $4.9 million in the third quarter of 2001. For the nine months ended April 30, 2001, NetFORCE(TM) sales grew 210% from $5.9 million in fiscal 2000 to $18.3 million in fiscal 2001.

With increasing revenue contribution from higher-margin NAS products, gross margins increased for the fourth consecutive quarter to 39.7%, compared to 24.1% in the third quarter of fiscal 2000. Gross margins for the nine months ended April 30, 2001, improved to 38.4% compared to 25.2% for the same period last year.

Net loss for the quarter totaled $3.0 million, or $0.25 per share, compared to a net loss of $2.5 million, or $0.22 per share, for the same quarter last year. Excluding the one-time charge of $4.3 million incurred in fiscal 2001, net loss for the nine months ended April 30, 2001, improved by 15%, from $6.7 million in fiscal 2000 to $5.7 million in fiscal 2001.