Iomega Corp., maker of storage products, and
Lexar Media Inc.
— designer, marketer and licenser of removable flash-based digital media and card reader products — today announced their recent quarterly financial results. The former reported a loss, the latter a profit.
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Iomega today reported a net loss of US$25.7 million, or $0.50 per share, for the quarter ended September 29. This net loss included charges relating to Iomega’s previously announced agreement to sell its Penang, Malaysia, manufacturing subsidiary to Venture Corp., consisting of $10.7 million in impairment charges and an additional $26.8 million in tax provisions. Not counting the impairment charges and the tax provisions, adjusted net income for third quarter 2002 was $11.8 million, or $0.23 per share.
In comparison, the third quarter 2001 net loss was $71.1 million, or $1.32 per share, including $18.8 million of after-tax non-restructuring charges, $20.1 million of after-tax restructuring charges and the establishment of a $28.7 million valuation allowance for net deferred tax assets. Excluding these amounts, third quarter 2001 adjusted net loss was $3.5 million, or $0.07 per share.
Operating income was $16.3 million compared to an operating loss of $9.1 million in the same period a year ago, excluding non-restructuring charges and restructuring charges in the third quarter of 2001, and the loss on the agreement to sell the Malaysian subsidiary and restructuring reversals in the third quarter of 2002.
Third quarter 2002 revenue of $136.4 million decreased $45.5 million, or 25 percent, compared to third quarter 2001, mainly due to decreased Zip, Jaz, and CD-RW product line revenues. During the quarter, Iomega’s total cash, cash equivalents, and temporary investments grew $18.4 million to $390.5 million as of September 29.
Meanwhile, Lexar Media’s financial results for the third quarter ended September 30 were better. Total third quarter revenues of $45.7 million increased approximately 35 percent from $34.0 million in the second quarter of 2002 and 152 percent from $18.1 million in the same period last year.
Product revenues of $41.3 million exclude an increase in deferred product revenues of $4.6 million during the quarter. Net income was $2.0 million, or $0.03 per share, as compared to net income of $1.3 million, or $0.02 per share, in the immediately preceding quarter. Lexar Media had $31.2 million in cash and cash equivalents as of September 30. The company has enjoyed tremendous revenue growth over the past nine months with an increase of 110 percent over the same period last year, said Eric Stang, Lexar Media’s president and CEO.
“The past quarter also marks our seventh quarter of sequential revenue growth and second consecutive quarter of profitability,” he added. “The demand for digital photography and storage-related products remains robust heading into the holiday season.”
Lexar Media expects to achieve sequential revenue growth of 25 percent to $57 million and a sequential increase in net income of 100 percent to $4 million. For the year, Lexar Media is raising its year-end revenue guidance from $140 million to approximately $165 million, representing year-over-year growth of 123 percent.