Sales at storage vendor Adaptec Inc [ADPT] rose by a better-than-expected 27%, mainly thanks to revenue contributions from two acquisitions made earlier this year.
For the second quarter of fiscal year 2004, Adaptec reported a narrow net profit of $261,000, compared with a net loss of $10.8 million, on revenue of $109.1 million, up from $85.7 million in the year-ago quarter.
However, the second-quarter results were slightly skewed by the inclusion of the results from Eurologic Systems (acquired in April 20003), and ICP vortex Computersysteme GmbH (acquired in June 2003). Eurologic contributed $12.6 million in the second quarter, and ICP vortex added $4.9 million. Both acquisitions have now been completed.
Cash and cash equivalents and investments declined to $683.4 million, from $707.1 million in the year-ago period. Adaptec also incurred $1.5 million of restructuring charges during the second quarter, primarily related to reduction in headcount.
Looking forward, the California-based company said that revenue in the third quarter could top estimates, as companies boost year-end IT spending. It expects revenue to be in a range of $114 million to $116 million, and earnings before items in a range of $0.03 to $0.04 per share, compared with year-earlier sales of $109 million and earnings per share before items of $0.03.
This article was based on material originally published by ComputerWire.