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Adaptec Wants Channel Change

Judging from its latest earnings report and forecast, it looks as if
Adaptec Inc. (Nasdaq: ADPT) bought Snap Appliance Inc. more for its channel presence than its NAS product line.

Adaptec cited disappointing channel sales for missing previous guidance on revenue reported today, although it beat guidance and analysts estimates on net income.

Adaptec reported revenue of $115.5 million and net income of $6.4 million or $0.06 earnings per share. First Call forecast was for $117.9 million and $0.04. Adaptec’s previous guidance was for $116 million to $119 million in revenue and $0.03 to $0.04 EPS.

Adaptec’s revenue was up from $107.3 million from the same quarter last year, but down from $121.3 million sequentially. Its net income rose from from $3.6 million last year, but dropped from $6.6 million last quarter.

CFO Marshall Mohr told analysts on a conference call that ”demand was inconsistent during the quarter, particularly in the channel. We attribute that to delays in Intel's new server products, which had the effect of freezing channel demand.”

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