• 07/23/2003
    8:30 PM
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StorageTek Keeps on Growth Curve

But despite beating estimates and posting revenue growth in all segments, its stock slips a bit
Despite posting higher-than-expected second-quarter profits yesterday, Storage Technology Corp. (StorageTek) (NYSE: STK) saw its stock slip 2.7 percent in morning trading today (see StorageTek Boosts Q2 Profit).

In its 12th consecutive quarter of year-over-year earnings growth, StorageTek posted a profit of $30 million, or 27 cents a share, yesterday. Analysts polled by Thomson First Call had expected the storage vendor to post earnings of 24 cents a share.

The company said its revenues for the quarter rose to $527 million from its first-quarter revenues of $480 million. Its sales were also up from $492 million for its second quarter last year (see StorageTek Gets a Lift and StorageTek Announces Q2).

"I think what happened in the quarter was that we fired up almost every sector of our business," StorageTek president and CEO Pat Martin said in an interview with Byte and Switch. The company showed sequential growth in tape and disk sales, as well as networking and storage services, he said. We clearly gained share.”

The strong growth did not, however, stop the Louisville, Colo., company’s stock from dropping 72 cents, to $25.87 a share, in morning trading today.

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