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EXHIBIT 99.1
December 8, 2000 Press Release
Friday December 8, 8:00 am Eastern Time
Quantum Corporation's Hard Disk Drive Group's Revenue and Units for Fiscal
Third Quarter to be Lower Than Expected
MILPITAS, Calif.--(BUSINESS WIRE)--Dec. 8, 2000--Quantum Corporation's Hard Disk
Drive Group (NYSE:HDD <http://finance.yahoo.com/) today announced that revenues
and unit shipments for its third fiscal quarter, ending December 31, 2000, will
be lower than previously expected. The company expects third quarter revenues
will range between $725 million and $750 million, on total shipments of between
7 million and 7.5 million units.
"The decline in revenue and units is due to a specific component availability
issue which impacted the production ramps of our new 20GB per platter desktop
product lines," said John Gannon, president of Quantum's Hard Disk Drive Group.
"We have alternate sources for this component, but we were unable to obtain
adequate supply to offset the shortfall in the current quarter. We now have
adequate component supply and have resumed our ramp of these product lines.
"This shortfall is solely attributable to the desktop drive business. Our
high-end business remains on track for sequential unit and revenue growth for
the December quarter. Despite the lower than expected revenue, we will still see
significant sequential improvement in our operating results. We believe we will
reduce our net loss by more than half from the $0.25 per share loss, excluding a
special charge reversal, that was incurred in the September quarter."
About Quantum
Founded in 1980, Quantum Corporation (www.quantum.com) is one of the world's
leading storage suppliers.
Its principal products include hard disk drives for both the desktop and
high-end market segments, tape drives, network attached storage (NAS)
appliances, solid state systems, hard disk drive appliances for consumer
electronics, and DLTtape(TM) automation systems. In 1999, Quantum became the
first Silicon Valley company to issue tracking stock, replacing its existing
common stock with the ticker symbols DSS and HDD, which track the separate
performance of the company's DLT and Storage Systems and Hard Disk Drive
businesses. Both stocks are traded on the New York Stock Exchange. Selling its
products through OEM and distribution channels worldwide, Quantum's sales for
the fiscal year ended March 2000 were $1.4 billion for Quantum's DLT and Storage
Systems Group and $3.3 billion for Quantum's Hard Disk Drive Group. Quantum
Corp., 500 McCarthy Blvd., Milpitas, CA 95035, 408/894-4000, www.quantum.com.
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"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act
of 1995: This press release contains certain "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of 1995 including
future financial and operating results of Quantum, anticipated revenue and
earnings for fiscal Q3 and expected product and unit shipments. These statements
are based on management's current expectations and are subject to certain risks
and uncertainties. As a result, actual results may differ materially from the
forward-looking statements contained herein. Factors that could cause actual
results to differ materially from those described herein include the amount of
orders received and products shipped throughout the quarter and any adjustments
made at the close of the quarter; successful execution of Quantum's strategy to
expand its business into the high-end drive business and other new directions;
Quantum's ability to successfully introduce new products; Quantum's ability to
anticipate and capitalize on changes in market demand; acceptance of, and demand
for, Quantum's products; Quantum's ability to maintain component and supplier
relationships and obtain an adequate supply of components to fulfill its
business needs; the ability of Quantum's competitors to introduce new products
that compete more successfully with its products; the economic environment of
the storage industry; and the general economic environment.
More detailed information about these factors, and additional factors, are set
forth in Quantum's periodic filings with the Securities and Exchange Commission
including, but not limited to, those risks and uncertainties listed in the
section entitled "Management's Discussion and Analysis of Financial Condition
and Results of Operations -- Trends and Uncertainties," pages 57-61, in
Quantum's Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on November 14, 2000 and "Management's Discussion and Analysis of
Financial Condition and Results of Operations --Trends and Uncertainties," pages
III-7 to III-10, in Quantum's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on June 28, 2000. Quantum is under no
obligation (and expressly disclaim any obligation) to update or alter its
forward-looking statements, whether as a result of new information, future
events or otherwise.
Note to Editors: Quantum and the Quantum logo are trademarks for Quantum
Corporation, registered in the United States and other countries.
Contact:
Quantum Corporation, Milpitas
Emory Epperson, 408/894-4959 (Public Relations)
[email protected] (mailto:[email protected])
Renee Budig, 408/894-5563 (Investor Relations)
[email protected] (mailto:[email protected])
