Maxtor Corporation Reports Second Quarter 2003 Financial Results

(Auszug aus der Pressemitteilung)

MILPITAS, Calif., July 22 – Maxtor Corporation

(NYSE: MXO) today announced its financial results for the second quarter ended
June 28, 2003. Revenue for the quarter was $910.9 million. The Company
reported net income on a GAAP basis of $6.2 million, or $0.03 per share.
Included in the GAAP net income was a charge of $20.6 million for the
amortization of intangible assets and $0.2 million in stock compensation
expense. On a pro forma basis, excluding these charges, Maxtor reported net
income of $27.0 million, or $0.11 per share. During the third quarter of
2002, the Company shut down its network attached storage business and, as a
result, net income in prior periods has been reclassified to reflect both
continuing and discontinued operations. In the second quarter of 2002, Maxtor
reported revenue of $885.4 million from continuing operations and a loss from
continuing operations on a GAAP basis of $103.3 million, or $(0.43) per share.
Excluding $20.6 million for amortization of intangible assets and $0.6 million
in stock compensation expense, the pro forma loss from continuing operations
was $82.1 million, or $(0.34) per share in the second quarter of 2002.

“We are pleased with our second quarter financial results, which were
achieved during the seasonally weakest quarter of the year for the industry,”
said Paul Tufano, president and chief executive officer. “We met our
commitments for volume and revenue and exceeded our pro forma profitability
target. This was the result of our continued focus on operating efficiency
and cost management, as well as a higher percentage of sales of 80 GB areal
density desktop drives and SCSI server drives.”

Maxtor shipped 12.2 million hard drives in the second quarter. The gross
profit margin was 16.4%. Operating expenses on a GAAP basis totaled
$135.7 million. Excluding amortization of intangible assets of $20.6 million
and stock compensation expense of $0.2 million, operating expenses on a pro
forma basis declined to $115.0 million.

“We were especially pleased with the growth in hard drives sold to
consumer electronics OEM customers, primarily for PVR, DVR and set-top box
applications,” Mr. Tufano continued. “Shipments to these customers totaled
1,160,000 in the second quarter. Our server business also grew substantially
from the first quarter. We shipped 574,000 SCSI drives in the second quarter
compared with 460,000 in the first, reflecting increased volume shipments of
the Atlas 10K IV 36 GB per platter drives and the initial ramp of our Atlas
15K SCSI drives. With the transition to 80 GB areal density essentially
complete; a broader line of server drives and our leading position in consumer
electronic applications, Maxtor is well-positioned as we enter the seasonally
robust second half of the year.”

Maxtor