Adaptec: Fiscal 2Q09 Financial Results

Adaptec, Inc. reported its financial results for the second quarter of fiscal 2009, which ended on September 26, 2008.

"The Company has made significant progress in the past year. In the second fiscal quarter we executed on several strategic initiatives that we believe further strengthen our competitive position. We have maintained a rapid pace of innovation and launched our Green Power initiative with the introduction of Adaptec Intelligent Power Management. We further strengthened our technology portfolio by completing the acquisition of Aristos Logic. In addition, we expanded our OEM business by announcing that IBM is integrating our RAID Storage Processor (RSP) technology into its IBM BladeCenter S," said S. ‘Sundi’ Sundaresh, President and CEO of Adaptec. "And beyond our operational accomplishments, our top line results exceeded the Company’s guidance and we continued to maintain profitability and generate cash."

Net revenues from continuing operations for the Company’s second quarter of fiscal 2009 were $31.7 million, compared with $37.7 million for the second quarter of fiscal 2008. Gross margins, computed on a generally accepted accounting principles (GAAP) basis, from continuing operations were 42% for the second quarter of fiscal 2009, compared with 36% for the second quarter of fiscal 2008. Non-GAAP gross margins for the second quarter of fiscal 2009 were 44%, compared with 36% for the second quarter of fiscal 2008.

The Company’s GAAP income from continuing operations, net of taxes, for the second quarter of fiscal 2009 was $3.3 million, or $0.02 per share, compared with a loss from continuing operations, net of taxes, of ($6.5) million, or ($0.05) per share, for the second quarter of fiscal 2008. GAAP net income for the second quarter of fiscal 2009 was $3.3 million, or $0.02 per share, compared with a net loss of ($7.6) million, or ($0.06) per share, for the second quarter of fiscal 2008.

Non-GAAP income from continuing operations, net of taxes, for the second quarter of fiscal 2009 was $4.0 million, or $0.03 per share, compared with a non-GAAP loss from continuing operations, net of taxes, of ($1.5) million, or ($0.01) per share, for the second quarter of fiscal 2008. Non-GAAP net income for the second quarter of fiscal 2009 was $4.0 million, or $0.03 per share, compared with a non-GAAP net loss of ($2.4) million, or ($0.02) per share, for the second quarter of fiscal 2008. The non-GAAP results for all periods presented, including, but not limited to, the second quarters of fiscal 2009 and 2008, as defined below in the section "Use of Non-GAAP Financial Measures," differ from results measured under GAAP as they exclude stock-based compensation expense, expense associated with the management liquidation pool, amortization of acquisition-related intangible assets, restructuring costs, gain on repurchase of 3/4% convertible notes, other specified charges or gains, and tax differences due to GAAP versus non-GAAP measurements. A complete reconciliation between GAAP and non-GAAP information referred to in this release is provided in the attached tables at the end of this press release.