Storage Area Networks Announces Q1 Results

SAN Holdings Inc., dba Storage Area Networks, a supplier of integrated data storage solutions and data storage appliances and services reported lackluster results for the first quarter, 2001.

Revenues for the three months ended March 31, 2001 were $3,369,000 with Gross Profit of $699,000 (21%). SG&A expenses were $1,659,000 yielding EBITDA loss of $827,000 and a loss from operations of $1,070,000. The company reported an after tax loss of $1,066,000. The company spent $310,000 on engineering and marketing introduction of its SANZstream and GEMS data appliance and service offerings in the quarter.

John Jenkins, CEO, said, “The March quarter is typically slow for both the commercial and federal sectors of our business. This was aggravated in our commercial base by the widespread capital spending slow down resulting from the general economic uncertainty. Our federal business also slowed as a large client took longer than expected to make a multi-site technology decision, delaying a project award that is now anticipated in the second quarter.

“We expect improved results in our second quarter with revenues between $5,500,000 and $6,700,000,” Jenkins continued. “Proposal activity has increased sharply, and we see other signs that the commercial sector is coming back to life. Our investment in additional sales staff and our new Sun Microsystems relationship is generating additional momentum and our federal business is entering its stronger buy-cycle period.”

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