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ADIC Banks on Disk

Is tape library vendor Advanced Digital Information Corp. (Nasdaq: ADIC) betting its future on a disk-based backup solution?

It appears so, from comments made during the companys quarterly earning reports. With sales of ADIC’s tape libraries and software running out of gas, executives are looking to the recently released Pathlight VX for a boost later this year.

The Pathlight VX uses ATA disk storage as well as tape to perform backups. Its release last December reflects an overall trend toward less reliance on tape and more on new, cheaper disk storage for backup (see ADIC Slips a Disk into Backup) -- although the trend hasn’t translated into big sales yet for tape vendors (see StorageTek Aims Higher).

ADIC’s income of $4.9 million, or $0.08 per share, for the quarter was up from $1.7 million, or $0.03, in the same quarter last year, but ADIC’s sales of enterprise tape libraries and standalone software were still below expectations, despite rising from last year's levels. Saying he doesn’t share other storage CEOs’ rosy spending outlook, ADIC CEO Peter van Oppen expects two more quarters of flat revenue.

“It appears the next two quarters will again be fairly similar to the first quarter, with revenue growth likely to accelerate during the second half of the year,” he said.

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