Releases

posted on 08 May 2008 14:45

MILPITAS, CA, May 08, 2008 (MARKET WIRE via COMTEX News Network) -- Adaptec, Inc. (NASDAQ: ADPT), a global leader in storage solutions, today reported its financial results for the fourth quarter and fiscal year ended March 31, 2008.

"I am pleased with Adaptec's execution on a number of fronts this quarter," said S. "Sundi" Sundaresh, president and CEO of Adaptec. "From a technology innovation perspective, we have made considerable strides in our DPS Business with the very successful global launch of our Series 5 Unified Serial RAID controller family. From an operational perspective, we continue to align expenses with our revenue while improving margins and generating cash."

Net revenues for the Company's fourth quarter of fiscal 2008 were $39.9 million, compared with $51.9 million for the fourth quarter of fiscal 2007. Gross margins were 42.5% for the fourth quarter of fiscal 2008, compared with 33.8% for the fourth quarter of fiscal 2007.

The Company's loss from continuing operations, net of taxes, computed on a generally accepted accounting principles (GAAP) basis, for the fourth quarter of fiscal 2008 was $(0.1) million, or $(0.00) per share, compared with a loss from continuing operations, net of taxes, of $(4.2) million, or $(0.04) per share, for the fourth quarter of fiscal 2007. GAAP net income for the fourth quarter of fiscal 2008 was $0.5 million, or $0.00 per share, compared with a net loss of $(3.3) million, or $(0.03) per share, for the fourth quarter of fiscal 2007.

Non-GAAP income from continuing operations, net of taxes, for the fourth quarter of fiscal 2008 was $5.7 million, or $0.04 per diluted share, compared with a non-GAAP loss from continuing operations, net of taxes, of $(2.7) million, or $(0.02) per share, for the fourth quarter of fiscal 2007.

Net revenues for the Company's fiscal year ended March 31, 2008 were $167.4 million, compared with $255.2 million for the fiscal year ended March 31, 2007.

The Company's loss from continuing operations, net of taxes, computed on a GAAP basis, for the fiscal year ended March 31, 2008 was $(10.1) million, or $(0.09) per share, compared with income from continuing operations of $24.8 million, or $0.20 per diluted share, for the fiscal year ended March 31, 2007.

GAAP net loss for the fiscal year ended March 31, 2008 was $(9.6) million, or $(0.08) per share, compared with net income of $30.8 million, or $0.25 per diluted share for the fiscal year ended March 31, 2007, which included $61.3 million of discrete tax benefits primarily related to settlements with the IRS.

Non-GAAP income from continuing operations, net of taxes, for the fiscal year ended March 31, 2008 was $2.1 million, or $0.02 per diluted share, compared with non-GAAP loss from continuing operations of $(5.9) million, or $(0.05) per share, for the fiscal year ended March 31, 2007.

The non-GAAP results for all the periods presented, including, but not limited to, the fourth quarter of fiscal 2008 and the fiscal year ended March 31, 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 a management incentive program, amortization of acquisition-related intangible assets, restructuring costs, other 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.

Conference Call

The Adaptec fourth quarter fiscal 2008 earnings conference call is scheduled for 1:45 p.m. Pacific Time on May 8, 2008. Individuals may participate via webcast by visiting www.adaptec.com/investor 15 minutes prior to the call. A telephone replay of the teleconference will be available through May 22, 2008 by calling (888) 203-1112 in the U.S. or (719) 457-0820 internationally and referencing reservation number 7966641.

About Adaptec

Adaptec, Inc. (NASDAQ: ADPT) provides trusted storage solutions that reliably move, manage, and protect critical data and digital content. Adaptec's software and hardware-based solutions are delivered through leading original equipment manufacturers (OEMs) and channel partners to provide storage connectivity, data protection, and networked storage to enterprises, government organizations, medium and small businesses worldwide. More information is available at www.adaptec.com.

^{[Formatted by Paul Warren.]}