Maxtor Corporation Reports Third Quarter 2004 Results

(Auszug aus der Pressemitteilung)

MILPITAS, Calif., Oct. 20 – Maxtor Corporation

(NYSE: MXO) today announced its financial results for the third quarter ended
September 25, 2004. Revenue for the quarter was $927.2 million. The Company
reported a net loss on a GAAP basis in the third quarter of 2004 of $90.6
million, or $(0.36) per share. Included in the GAAP net loss was $27.2
million of severance and facilities-related restructuring charges and a $5.1
million charge for the amortization of intangible assets. On a non-GAAP
basis, excluding these charges, Maxtor reported a net loss of $58.3 million,
or $(0.23) per share. In the third quarter of 2003, revenue totaled $1.066
billion. Net income on a GAAP basis in the third quarter of 2003 was $29.9
million, or $0.12 per diluted share. The GAAP net income included a charge
for the amortization of intangible assets and stock-based compensation expense
totaling $20.7 million. On a non-GAAP basis, excluding these charges, net
income in the third quarter of 2003 was $50.6 million, or $0.20 per diluted
share.

“Demand in the third quarter reflected seasonal strength and revenue was
above our initial expectations,” said Paul Tufano, president and chief
executive officer. “Our average selling price declined from $71 in the second
quarter to $67 in the third, a 6% quarter over quarter reduction.”

Maxtor shipped 13.8 million hard drives in the quarter. Included in this
total were 643,000 of SCSI drive shipments and 1,543,000 drives sold to
consumer electronics OEMs.

The gross profit margin was 6.4% in the third quarter compared with 9.0%
in the second. The decrease was largely the result of price erosion and an
anticipated settlement to a European OEM. Operating expenses on a GAAP basis
and on a non-GAAP basis were $144.9 million and $112.6 million, respectively.

“We continued to make progress on several key initiatives during the
quarter,” Mr. Tufano continued. “We generated $17.4 million in cash from
operations in the third quarter. MKE has completed its last volume build of
10,000 rpm SCSI drives for Maxtor. The next generation SCSI drives
manufactured in our Singapore facility are currently in qualification with
several OEMs, and we anticipate shipments in the fourth quarter. Our facility
in China is ramping on schedule and we expect continued volume growth from
that factory as we move through the remainder of 2004 and 2005.”