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ADIC - (recommended
to subscribers
on 8/18/05)
BOUGHT
at $8.18 TAKEOVER at $12.25
On
May 19th 2005 Advanced Digital Information, a provider of tape and disk
based storage solutions and services that allow businesses to manage
and protect their data, reported fiscal 2nd quarter 2005 revenue of
$106 million. This compares to revenue of $111 million in the 2nd
quarter of fiscal 2004. Net income was $733,000 or 1 cent per share
which compares to a net loss of $1.3 million or 2 cents per share a
year earlier.
Gross margins in the fiscal 2nd quarter were
31% which compares to 28% in the year earlier period. Gross margins
were at the highest level since the 4th quarter of fiscal 2003.
Sales outside the United States accounted for
35% of total revenue in fiscal 2004. Also in fiscal 2004 Dell
represented 24% of total revenue and IBM accounted for 21% of revenue
as Dell and IBM were the company's largest customers.
During the earnings conference call the company said that it's OEM
business, which had slowed in recent quarters, was at or near a bottom.
For the 3rd fiscal quarter the company expects revenue to be
approximately $106 million. For the 4th quarter the company expects
revenue to increase to $115 million as new OEM products begin to ship.
ADIC expects continued improvement in gross margins for the remainder
of fiscal 2005.
During the last quarter the company
repurchased just over 1 million shares of stock. On May 18th ADIC
increased the current buyback plan and authorized the repurchase of up
to 5 million shares or 8% of total shares outstanding.
ADIC has cash and investments worth $244
million or $3.87 per share. Book value is $5.61 per share and the
company carries no debt. At the current level the stock has a
price-to-sales ratio 1.2 and a price-to-book ratio of just 1.5.
05/02/06-
ANNOUNCEMENT OF BEING ACQUIRED FOR $12.25 PER SHARE IN CASH, FOR A GAIN
OF 50%.
DURING THE SAME TIME PERIOD THE NASDAQ
WAS UP 8%.
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