Not only did the channel buy fewer components such as RAID boards, its also bought fewer of Adaptec’s EuroLogic-developed disk arrays, forcing Adaptec to lower its full-year revenue forecast.
For its first fiscal quarter ended June 30, 2004, Adaptec reported a GAAP net income of only $0.01m, but a pro forma net income of $6.4m or $0.06 per share, down from $40.8m for the same period last year.
Revenue in the quarter was $115.5m, up from $107.3m for the same period a year ago. Guidance had been for revenue of between $116m and $119m with pro forma earnings of $0.03 to $0.04.
Demand was inconsistent during the quarter particularly in the channel. We attribute the channel inconsistencies to delays in Intel’s new server products, which had the effect of freezing channel demand, said Marshall Mohr, Adaptec CFO.
Adaptec forecast full-year fiscal 2005 revenue of between $545m and $555m, including revenue from the two businesses that Adaptec very recently acquired: IBM’s RAID component business, and high-volume low end NAS-maker Snap Appliance.
