Adaptec: Fiscal 3Q09 Financial Results

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

"While these remain difficult economic times, Adaptec is focused on what will enable us to win in the long-term — innovating for future growth and carefully managing the business. In the past quarter, we successfully completed the Aristos integration, won two channel awards for leadership, and brought a new and leading product to market," said S. "Sundi" Sundaresh, President and CEO of Adaptec. "We have a strong balance sheet that provides us flexibility as we continue to execute on the business imperatives that will allow us to succeed in the long-term."

Net revenues from continuing operations for the Company’s third quarter of fiscal 2009 were $28.2 million, compared with $36.1 million for the third quarter of fiscal 2008. Gross margins, computed on a generally accepted accounting principles (GAAP) basis, from continuing operations were 40% for the third quarter of fiscal 2009, compared with 42% for the third quarter of fiscal 2008. Non-GAAP gross margins for the third quarter of fiscal 2009 were 44%, compared with 42% for the third quarter of fiscal 2008.

The Company’s GAAP income from continuing operations, net of taxes, for the third quarter of fiscal 2009 was $0.1 million, or $0.00 per share, compared with income from continuing operations, net of taxes, of $2.9 million, or $0.02 per share, for the third quarter of fiscal 2008. GAAP net loss for the third quarter of fiscal 2009 was ($1.3) million, or ($0.01) per share, compared with a net income of $1.1 million, or $0.01 per share, for the third quarter of fiscal 2008.

Non-GAAP income from continuing operations, net of taxes, for the third quarter of fiscal 2009 was $0.1 million, or $0.00 per share, compared with non-GAAP income from continuing operations, net of taxes, of $6.1 million, or $0.05 per share, for the third quarter of fiscal 2008. Non-GAAP net loss for the third quarter of fiscal 2009 was ($0.1) million, or ($0.00) per share, compared with non-GAAP net income of $4.6 million, or $0.04 per share, for the third quarter of fiscal 2008. The non-GAAP results for all periods presented differ from results measured under GAAP as they exclude stock-based compensation expense, expense associated with the management liquidation pool established in connection with the Aristos Logic Corporation transaction, amortization of acquisition-related intangible assets, restructuring costs, gain on extinguishment of debt, other specified charges or gains, tax differences due to GAAP versus non-GAAP measurements and certain items related to discontinued operations. 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 in the section "Use of Non-GAAP Financial Measures."

The Company initiated a new restructuring plan to reduce operating expenses during the third quarter of fiscal 2009, incurring a charge of $0.9 million, related to headcount reductions. The Company expects annual operating expense savings of approximately $2.9 million from this plan.