A 34% decline in net profits (Results, page seven) may not look like cause for rejoicing, but the decline in first quarter net at Storage Technology Corp is entirely down to extraordinary items and at the operating level, profits advanced sixfold: no longer justifying the soubriquet the Louisville Lip, the company has emerged from bankruptcy protection with a sober approach to the business of giving IBM a hard time in the tape, disk and printer peripherals markets, and now recognises a sale only once the customer has accepted the product rather than at the time of shipment; it reports that turnover and profit exceeded its expectations as a result of better than expected acceptances of the 4400 Automated Cartridge System and 4480 18-track cartridge drives coupled with expenditures that came in below plan; it warns that its more rigorous accounting approach can contribute to some degree of fluctuation in earnings on a quarterly basis, so it may not advance at the same rate for the rest of the year.
