On July 28th 2005 Adaptec Incorporated, a provider of storage solutions, reported fiscal 1st quarter 2006 revenue of $98.4 million. On a non-Gaap basis revenue was $105.9 million. This compares to revenue of $115.5 million in the 1st quarter of fiscal 2005. On a Gaap basis the net loss was $36 million or 32 cents per share which included several unusual charges including acquisition related charges. On a non-Gaap basis the loss was $14.3 million of 13 cents per share. This compares to net income of $6.4 million or 5 cents per share in the year earlier period. In the 1st fiscal quarter the company had 2 customers that each accounted for more than 10% of total revenue. IBM accounted for 23% of revenue and DELL accounted for 12% of total revenue. Also in the 1^st fiscal quarter 55% of total revenue was derived from outside of North America.
     ADPT has cash and investments worth $483.8 million or $4.30 per share. The company has debt of $240.4 million. The net cash & investments position ($483.8 million - $240.4 million) is $243.4 million or $2.26 per share. Book value is $2.82 per share. At the current level the stock has a price-to-sales ratio of .8 and a price-to-book ratio of just 1.2.
     Above is a 4 year weekly chart of ADPT. At the bottom of the chart is a Relative Strength Index (RSI). In August the stock put in a low which was lower than the one put in 3 months earlier. However the RSI did not put in a lower low. This is a bullish technical divergence.